Exhibit

EX-99.2 3 cns-earningsreleasex93.htm CNS EARNINGS RELEASE Exhibit

Contact:

Matthew S. Stadler

Executive Vice President

Chief Financial Officer

Cohen & Steers, Inc.

Tel (212) 446-9168

COHEN & STEERS REPORTS RESULTS FOR THIRD QUARTER 2019


•	Diluted EPS of $0.70 ($0.65 as adjusted)


•	Operating margin of 38.2% (38.8% as adjusted)


•	AUM of $70.8 billion; average AUM of $68.6 billion


•	Net inflows of $1.1 billion

NEW YORK, NY, October 16, 2019—Cohen & Steers, Inc. (NYSE: CNS) today reported its operating results for the quarter ended September 30, 2019.



Financial Highlights
(in thousands, except percentages and per share data)	Three Months Ended
	September 30, 2019			June 30, 2019			September 30, 2018
U.S. GAAP
Revenue	$	104,965		$	101,792		$	98,331
Expenses	$	64,832		$	63,688		$	59,108
Operating income (loss)	$	40,133		$	38,104		$	39,223
Non-operating income (loss)	$	6,617		$	4,536		$	1,047
Net income attributable to common stockholders	$	34,017		$	31,333		$	30,790
Diluted earnings per share	$	0.70		$	0.65		$	0.65
Operating margin	38.2		%	37.4		%	39.9		%

As Adjusted ⁽¹⁾
Net income attributable to common stockholders	$	31,257		$	29,682		$	30,272
Diluted earnings per share	$	0.65		$	0.62		$	0.64
Operating margin	38.8		%	38.2		%	40.2		%
_________________________ (1) 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.

U.S. GAAP

This section discusses the financial results of the Company as presented in accordance with U.S. GAAP. Prior period revenue from model-based portfolios was reclassified from other (previously reported as portfolio consulting and other) to investment advisory and administration fees.

Revenue

Revenue for the third quarter of 2019 was $105.0 million, an increase of 3.1% from $101.8 million for the second quarter of 2019. The change was primarily due to:


•	An increase in investment advisory and administration fees of $2.9 million attributable to higher average assets under management. Changes to investment advisory and administration fee revenue by investment vehicle were as follows:


◦	Institutional account revenue increased $100,000 to $27.5 million;


◦	Open-end fund revenue increased $2.1 million to $48.5 million; and


◦	Closed-end fund revenue increased $711,000 to $20.7 million.

Expenses

Expenses for the third quarter of 2019 were $64.8 million, an increase of 1.8% from $63.7 million for the second quarter of 2019. The change was primarily due to:


•	An increase in employee compensation and benefits of $1.0 million, primarily due to higher incentive compensation; and


•	A decrease in distribution and service fee expense of $46,000, primarily due to the impact of redemptions from a higher cost intermediary which offset the increase attributable to higher average assets under management in U.S. open-end funds.

Operating Margin

Operating margin was 38.2% for the third quarter of 2019, compared with 37.4% for the second quarter of 2019.



Non-operating Income (Loss)
(in thousands)	Three Months Ended
	September 30, 2019								June 30, 2019
	Seed Investments				Other		Total		Seed Investments			Other		Total
Interest and dividend income—net	$	691			$	1,022	$	1,713	$	1,013		$	907	$	1,920
Gain (loss) from investments—net	4,472				—		4,472		1,874			—		1,874
Foreign currency gains (losses)—net	(945		)		1,377		432		505			237		742
Total non-operating income (loss)	$	4,218		⁽¹⁾	$	2,399	$	6,617	$	3,392	⁽¹⁾	$	1,144	$	4,536
_________________________ (1) Amounts included income of $2.4 million and $1.3 million attributable to third-party interests for the three months ended September 30, 2019 and June 30, 2019, respectively.

Non-operating income for the third quarter of 2019 was $6.6 million, compared with $4.5 million for the second quarter of 2019. For the third quarter of 2019, the Company’s share of non-operating income from seed investments was $1.8 million, approximating a return of 2.7%. For the second quarter of 2019, the Company’s share of non-operating income from seed investments was $2.1 million, approximating a return of 3.0%.

Income Taxes

The effective tax rate for the third quarter of 2019 was 23.3%, compared with 24.2% for the second quarter of 2019. The effective tax rate for both the second and third quarters of 2019 differed from the U.S. federal statutory rate of 21% primarily due to state, local and foreign taxes.

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 2019 was $104.9 million, compared with $101.8 million for the second quarter of 2019.

Revenue, as adjusted, excluded the impact of consolidation of certain of the Company's seed investments for both periods.

Expenses

Expenses, as adjusted, for the third quarter of 2019 were $64.1 million, compared with $62.9 million for the second quarter of 2019.

Expenses, as adjusted, excluded the following for both periods:


•	The impact of consolidation of certain of the Company's seed investments; and


•	Amounts related to the accelerated vesting of certain restricted stock units.

Operating Margin

Operating margin, as adjusted, for the third quarter of 2019 was 38.8%, compared with 38.2% for the second quarter of 2019.

Non-operating Income

Non-operating income, as adjusted, for the third quarter of 2019 was $1.1 million, compared with $877,000 for the second quarter of 2019.

Non-operating income, as adjusted, excluded the following for both periods:


•	Results from the Company's seed investments; and


•	Net foreign currency exchange gains associated with U.S. dollar-denominated assets held by certain foreign subsidiaries.

Income Taxes

The effective tax rate, as adjusted, was 25.3% for both the second and third quarters of 2019.

The effective tax rate, as adjusted, excluded the tax effects associated with the non-GAAP adjustments as well as certain discrete items for both periods.



Assets Under Management
(in millions)	As of
By Investment Vehicle	September 30, 2019		June 30, 2019 ⁽¹⁾		% Change
Institutional accounts	$	31,533	$	29,602	6.5	%
Open-end funds	29,598		27,563		7.4	%
Closed-end funds	9,707		9,436		2.9	%
Total	$	70,838	$	66,601	6.4	%

By Investment Strategy
U.S. real estate	$	30,964	$	28,841	7.4	%
Preferred securities	16,749		15,735		6.4	%
Global/international real estate	13,141		12,196		7.7	%
Global listed infrastructure	7,774		7,544		3.0	%
Other	2,210		2,285		(3.3	%)
Total	$	70,838	$	66,601	6.4	%
_________________________ (1) Prior period amounts have been recast to include model-based portfolios which were previously classified as assets under advisement.

Assets under management at September 30, 2019 were $70.8 billion, an increase of 6.4% from $66.6 billion at June 30, 2019. The increase was driven by net inflows of $1.1 billion and market appreciation of $3.8 billion, partially offset by distributions of $644 million.

Institutional Accounts

Assets under management in institutional accounts at September 30, 2019 were $31.5 billion, an increase of 6.5% from $29.6 billion at June 30, 2019. The change was primarily due to the following:


•	Advisory:


◦	Net inflows of $441 million, including $292 million into global/international real estate, $70 million into U.S. real estate and $54 million into global listed infrastructure; and


◦	Market appreciation of $703 million, including $273 million from U.S. real estate, $268 million from global/international real estate, $89 million from preferred securities and $67 million from global listed infrastructure.


•	Japan subadvisory:


◦	Net inflows of $9 million;


◦	Market appreciation of $754 million, including $644 million from U.S. real estate and $97 million from global/international real estate; and


◦	Distributions of $304 million, including $287 million from U.S. real estate.


•	Subadvisory excluding Japan:


◦	Net inflows of $62 million, including $42 million into global/international real estate and $42 million into global listed infrastructure, partially offset by net outflows of $18 million from U.S. real estate; and


◦	Market appreciation of $266 million, including $177 million from global/international real estate and $78 million from U.S. real estate.

Open-end Funds

Assets under management in open-end funds at September 30, 2019 were $29.6 billion, an increase of 7.4% from $27.6 billion at June 30, 2019. The change was primarily due to the following:


•	Net inflows of $616 million, including $679 million into preferred securities, partially offset by net outflows of $88 million from large cap value (which is included in "Other" in the table on page 15);


•	Market appreciation of $1.6 billion, including $1.2 billion from U.S. real estate and $332 million from preferred securities; and


•	Distributions of $213 million, including $123 million from preferred securities and $85 million from U.S. real estate.

Closed-end Funds

Assets under management in closed-end funds at September 30, 2019 were $9.7 billion, an increase of 2.9% from $9.4 billion at June 30, 2019. The increase was the result of market appreciation of $396 million, partially offset by distributions of $127 million.

Investment Performance at September 30, 2019

_________________________

(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)

© 2019 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 as of September 30, 2019. 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, 2019, cash, cash equivalents, U.S. Treasury securities and seed investments were $246 million. As of September 30, 2019, stockholders' equity was $279 million and the Company had no debt.

Conference Call Information

Cohen & Steers will host a conference call tomorrow, October 17, 2019 at 10:00 a.m. (ET) to discuss the Company's third quarter results. Investors and analysts can access the live conference call by dialing 800-754-1336 (U.S.) or +1-212-231-2906 (international); passcode: 21931452. 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—Press Releases.”

A replay of the call will be available for two weeks starting at approximately 12:00 p.m. (ET) on October 17, 2019 and can be accessed at 800-633-8284 (U.S.) or +1-402-977-9140 (international); passcode: 21931452. 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 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 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 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," "may," "should," "seeks," "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, 2018 (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
	September 30, 2019			June 30, 2019			September 30, 2018			June 30, 2019		September 30, 2018
Revenue ⁽¹⁾
Investment advisory and administration fees	$	96,763		$	93,854		$	90,352
Distribution and service fees	7,681			7,418			7,451
Other	521			520			528
Total revenue	104,965			101,792			98,331			3.1	%	6.7	%
Expenses
Employee compensation and benefits	37,877			36,846			33,126
Distribution and service fees	14,142			14,188			13,210
General and administrative	11,713			11,539			11,634
Depreciation and amortization	1,100			1,115			1,138
Total expenses	64,832			63,688			59,108			1.8	%	9.7	%
Operating income (loss)	40,133			38,104			39,223			5.3	%	2.3	%
Non-operating income (loss)
Interest and dividend income—net	1,713			1,920			2,747
Gain (loss) from investments—net	4,472			1,874			413
Foreign currency gains (losses)—net	432			742			(2,113		)
Total non-operating income (loss)	6,617			4,536			1,047			45.9	%	*
Income before provision for income taxes	46,750			42,640			40,270			9.6	%	16.1	%
Provision for income taxes	10,352			9,991			10,539
Net income	36,398			32,649			29,731			11.5	%	22.4	%
Less: Net (income) loss attributable to redeemable noncontrolling interests	(2,381		)	(1,316		)	1,059
Net income attributable to common stockholders	$	34,017		$	31,333		$	30,790		8.6	%	10.5	%

Earnings per share attributable to common stockholders
Basic	$	0.72		$	0.66		$	0.66		8.5	%	9.3	%
Diluted	$	0.70		$	0.65		$	0.65		8.0	%	8.5	%

Dividends declared per share	$	0.36		$	0.36		$	0.33		—	%	9.1	%

Weighted average shares outstanding
Basic	47,316			47,304			46,830
Diluted	48,412			48,175			47,524
_________________________ * Not meaningful. (1) Prior period amounts related to model-based portfolios were reclassified from other (previously reported as portfolio consulting and other) to investment advisory and administration fees.



Cohen & Steers, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except per share data)

	Nine Months Ended
	September 30, 2019			September 30, 2018			% Change
Revenue ⁽¹⁾
Investment advisory and administration fees	$	277,421		$	263,452
Distribution and service fees	22,072			22,108
Other	1,490			1,645
Total revenue	300,983			287,205			4.8	%
Expenses
Employee compensation and benefits	108,438			96,788
Distribution and service fees	40,866			38,492
General and administrative	34,690			35,791
Depreciation and amortization	3,317			3,405
Total expenses	187,311			174,476			7.4	%
Operating income (loss)	113,672			112,729			0.8	%
Non-operating income (loss)
Interest and dividend income—net	5,174			7,434
Gain (loss) from investments—net	20,210			(4,692		)
Foreign currency gains (losses)—net	679			(2,672		)
Total non-operating income (loss)	26,063			70			*
Income before provision for income taxes	139,735			112,799			23.9	%
Provision for income taxes	30,711			28,575
Net income	109,024			84,224			29.4	%
Less: Net (income) loss attributable to redeemable noncontrolling interests	(11,131		)	4,111
Net income attributable to common stockholders	$	97,893		$	88,335		10.8	%

Earnings per share attributable to common stockholders
Basic	$	2.07		$	1.89		9.7	%
Diluted	$	2.03		$	1.87		9.0	%

Dividends declared per share	$	1.08		$	0.99		9.1	%

Weighted average shares outstanding
Basic	47,256			46,778
Diluted	48,118			47,327
_________________________ * Not meaningful. (1) Prior period amounts related to model-based portfolios were reclassified from other (previously reported as portfolio consulting and other) to investment advisory and administration fees.



Cohen & Steers, Inc. and Subsidiaries
Assets Under Management
By Investment Vehicle
(in millions)
	Three Months Ended ⁽¹⁾									% Change From
	September 30, 2019			June 30, 2019			September 30, 2018			June 30, 2019		September 30, 2018
Institutional Accounts
Assets under management, beginning of period	$	29,602		$	30,431		$	29,850
Inflows	1,158			953			383
Outflows	(646		)	(2,174		)	(884		)
Net inflows (outflows)	512			(1,221		)	(501		)
Market appreciation (depreciation)	1,723			725			350
Distributions	(304		)	(333		)	(433		)
Total increase (decrease)	1,931			(829		)	(584		)
Assets under management, end of period	$	31,533		$	29,602		$	29,266		6.5	%	7.7	%
Percentage of total assets under management	44.5		%	44.4		%	46.2		%
Average assets under management	$	30,515		$	30,246		$	29,538		0.9	%	3.3	%

Open-end Funds
Assets under management, beginning of period	$	27,563		$	26,407		$	24,559
Inflows	2,794			3,002			2,000
Outflows	(2,178		)	(1,839		)	(1,575		)
Net inflows (outflows)	616			1,163			425
Market appreciation (depreciation)	1,632			803			277
Distributions	(213		)	(810		)	(241		)
Total increase (decrease)	2,035			1,156			461
Assets under management, end of period	$	29,598		$	27,563		$	25,020		7.4	%	18.3	%
Percentage of total assets under management	41.8		%	41.4		%	39.5		%
Average assets under management	$	28,548		$	27,056		$	24,991		5.5	%	14.2	%

Closed-end Funds
Assets under management, beginning of period	$	9,436		$	9,290		$	9,061
Inflows	2			—			—
Outflows	—			—			—
Net inflows (outflows)	2			—			—
Market appreciation (depreciation)	396			273			151
Distributions	(127		)	(127		)	(128		)
Total increase (decrease)	271			146			23
Assets under management, end of period	$	9,707		$	9,436		$	9,084		2.9	%	6.9	%
Percentage of total assets under management	13.7		%	14.2		%	14.3		%
Average assets under management	$	9,580		$	9,338		$	9,177		2.6	%	4.4	%

Total
Assets under management, beginning of period	$	66,601		$	66,128		$	63,470
Inflows	3,954			3,955			2,383
Outflows	(2,824		)	(4,013		)	(2,459		)
Net inflows (outflows)	1,130			(58		)	(76		)
Market appreciation (depreciation)	3,751			1,801			778
Distributions	(644		)	(1,270		)	(802		)
Total increase (decrease)	4,237			473			(100		)
Assets under management, end of period	$	70,838		$	66,601		$	63,370		6.4	%	11.8	%
Average assets under management	$	68,643		$	66,640		$	63,706		3.0	%	7.7	%
_________________________ (1) Prior period amounts have been recast to include model-based portfolios which were previously classified as assets under advisement.



Cohen & Steers, Inc. and Subsidiaries
Assets Under Management
By Investment Vehicle
(in millions)
	Nine Months Ended ⁽¹⁾
	September 30, 2019			September 30, 2018			% Change
Institutional Accounts
Assets under management, beginning of period	$	27,148		$	30,896
Inflows	2,962			1,878
Outflows	(4,007		)	(2,433		)
Net inflows (outflows)	(1,045		)	(555		)
Market appreciation (depreciation)	6,423			492
Distributions	(998		)	(1,599		)
Transfers	5			32
Total increase (decrease)	4,385			(1,630		)
Assets under management, end of period	$	31,533		$	29,266		7.7	%
Percentage of total assets under management	44.5		%	46.2		%
Average assets under management	$	29,975		$	29,211		2.6	%

Open-end Funds
Assets under management, beginning of period	$	22,295		$	25,188
Inflows	8,896			6,654
Outflows	(5,707		)	(6,102		)
Net inflows (outflows)	3,189			552
Market appreciation (depreciation)	5,349			72
Distributions	(1,230		)	(760		)
Transfers	(5		)	(32		)
Total increase (decrease)	7,303			(168		)
Assets under management, end of period	$	29,598		$	25,020		18.3	%
Percentage of total assets under management	41.8		%	39.5		%
Average assets under management	$	26,767		$	24,379		9.8	%

Closed-end Funds
Assets under management, beginning of period	$	8,410		$	9,406
Inflows	2			12
Outflows	—			—
Net inflows (outflows)	2			12
Market appreciation (depreciation)	1,676			50
Distributions	(381		)	(384		)
Total increase (decrease)	1,297			(322		)
Assets under management, end of period	$	9,707		$	9,084		6.9	%
Percentage of total assets under management	13.7		%	14.3		%
Average assets under management	$	9,301		$	9,078		2.5	%

Total
Assets under management, beginning of period	$	57,853		$	65,490
Inflows	11,860			8,544
Outflows	(9,714		)	(8,535		)
Net inflows (outflows)	2,146			9
Market appreciation (depreciation)	13,448			614
Distributions	(2,609		)	(2,743		)
Total increase (decrease)	12,985			(2,120		)
Assets under management, end of period	$	70,838		$	63,370		11.8	%
Average assets under management	$	66,043		$	62,668		5.4	%
_________________________ (1) Prior period amounts have been recast to include model-based portfolios which were previously classified as assets under advisement.



Cohen & Steers, Inc. and Subsidiaries
Assets Under Management - Institutional Accounts
By Account Type
(in millions)
	Three Months Ended ⁽¹⁾									% Change From
	September 30, 2019			June 30, 2019			September 30, 2018			June 30, 2019		September 30, 2018
Advisory
Assets under management, beginning of period	$	14,099		$	13,690		$	12,149
Inflows	567			725			303
Outflows	(126		)	(660		)	(155		)
Net inflows (outflows)	441			65			148
Market appreciation (depreciation)	703			344			130
Total increase (decrease)	1,144			409			278
Assets under management, end of period	$	15,243		$	14,099		$	12,427		8.1	%	22.7	%
Percentage of institutional assets under management	48.3		%	47.6		%	42.5		%
Average assets under management	$	14,666		$	13,866		$	12,303		5.8	%	19.2	%

Japan Subadvisory
Assets under management, beginning of period	$	9,846		$	10,160		$	11,074
Inflows	289			72			35
Outflows	(280		)	(296		)	(349		)
Net inflows (outflows)	9			(224		)	(314		)
Market appreciation (depreciation)	754			243			145
Distributions	(304		)	(333		)	(433		)
Total increase (decrease)	459			(314		)	(602		)
Assets under management, end of period	$	10,305		$	9,846		$	10,472		4.7	%	(1.6	%)
Percentage of institutional assets under management	32.7		%	33.3		%	35.8		%
Average assets under management	$	10,009		$	9,888		$	10,659		1.2	%	(6.1	%)

Subadvisory Excluding Japan
Assets under management, beginning of period	$	5,657		$	6,581		$	6,627
Inflows	302			156			45
Outflows	(240		)	(1,218		)	(380		)
Net inflows (outflows)	62			(1,062		)	(335		)
Market appreciation (depreciation)	266			138			75
Total increase (decrease)	328			(924		)	(260		)
Assets under management, end of period	$	5,985		$	5,657		$	6,367		5.8	%	(6.0	%)
Percentage of institutional assets under management	19.0		%	19.1		%	21.8		%
Average assets under management	$	5,840		$	6,492		$	6,576		(10.0	%)	(11.2	%)

Total Institutional Accounts
Assets under management, beginning of period	$	29,602		$	30,431		$	29,850
Inflows	1,158			953			383
Outflows	(646		)	(2,174		)	(884		)
Net inflows (outflows)	512			(1,221		)	(501		)
Market appreciation (depreciation)	1,723			725			350
Distributions	(304		)	(333		)	(433		)
Total increase (decrease)	1,931			(829		)	(584		)
Assets under management, end of period	$	31,533		$	29,602		$	29,266		6.5	%	7.7	%
Average assets under management	$	30,515		$	30,246		$	29,538		0.9	%	3.3	%
_________________________ (1) Prior period amounts have been recast to include model-based portfolios which were previously classified as assets under advisement.



Cohen & Steers, Inc. and Subsidiaries
Assets Under Management - Institutional Accounts
By Account Type
(in millions)
	Nine Months Ended ⁽¹⁾
	September 30, 2019			September 30, 2018			% Change
Advisory
Assets under management, beginning of period	$	12,065		$	11,341
Inflows	1,580			1,242
Outflows	(1,104		)	(366		)
Net inflows (outflows)	476			876
Market appreciation (depreciation)	2,697			178
Transfers	5			32
Total increase (decrease)	3,178			1,086
Assets under management, end of period	$	15,243		$	12,427		22.7	%
Percentage of institutional assets under management	48.3		%	42.5		%
Average assets under management	$	13,896		$	11,695		18.8	%

Japan Subadvisory
Assets under management, beginning of period	$	9,288		$	12,672
Inflows	388			138
Outflows	(863		)	(940		)
Net inflows (outflows)	(475		)	(802		)
Market appreciation (depreciation)	2,490			201
Distributions	(998		)	(1,599		)
Total increase (decrease)	1,017			(2,200		)
Assets under management, end of period	$	10,305		$	10,472		(1.6	%)
Percentage of institutional assets under management	32.7		%	35.8		%
Average assets under management	$	9,893		$	10,943		(9.6	%)

Subadvisory Excluding Japan
Assets under management, beginning of period	$	5,795		$	6,883
Inflows	994			498
Outflows	(2,040		)	(1,127		)
Net inflows (outflows)	(1,046		)	(629		)
Market appreciation (depreciation)	1,236			113
Total increase (decrease)	190			(516		)
Assets under management, end of period	$	5,985		$	6,367		(6.0	%)
Percentage of institutional assets under management	19.0		%	21.8		%
Average assets under management	$	6,186		$	6,573		(5.9	%)

Total Institutional Accounts
Assets under management, beginning of period	$	27,148		$	30,896
Inflows	2,962			1,878
Outflows	(4,007		)	(2,433		)
Net inflows (outflows)	(1,045		)	(555		)
Market appreciation (depreciation)	6,423			492
Distributions	(998		)	(1,599		)
Transfers	5			32
Total increase (decrease)	4,385			(1,630		)
Assets under management, end of period	$	31,533		$	29,266		7.7	%
Average assets under management	$	29,975		$	29,211		2.6	%
_________________________ (1) Prior period amounts have been recast to include model-based portfolios which were previously classified as assets under advisement.



Cohen & Steers, Inc. and Subsidiaries
Assets Under Management
By Investment Strategy
(in millions)
	Three Months Ended ⁽¹⁾									% Change From
	September 30, 2019			June 30, 2019			September 30, 2018			June 30, 2019		September 30, 2018
U.S. Real Estate
Assets under management, beginning of period	$	28,841		$	28,608		$	27,425
Inflows	1,638			1,905			1,008
Outflows	(1,519		)	(1,507		)	(1,024		)
Net inflows (outflows)	119			398			(16		)
Market appreciation (depreciation)	2,436			807			383
Distributions	(413		)	(993		)	(575		)
Transfers	(19		)	21			(34		)
Total increase (decrease)	2,123			233			(242		)
Assets under management, end of period	$	30,964		$	28,841		$	27,183		7.4	%	13.9	%
Percentage of total assets under management	43.7		%	43.3		%	42.9		%
Average assets under management	$	29,862		$	28,778		$	27,406		3.8	%	9.0	%

Preferred Securities
Assets under management, beginning of period	$	15,735		$	14,940		$	14,228
Inflows	1,371			1,277			980
Outflows	(732		)	(818		)	(808		)
Net inflows (outflows)	639			459			172
Market appreciation (depreciation)	510			481			138
Distributions	(154		)	(145		)	(142		)
Transfers	19			—			34
Total increase (decrease)	1,014			795			202
Assets under management, end of period	$	16,749		$	15,735		$	14,430		6.4	%	16.1	%
Percentage of total assets under management	23.6		%	23.6		%	22.8		%
Average assets under management	$	16,268		$	15,293		$	14,382		6.4	%	13.1	%

Global/International Real Estate
Assets under management, beginning of period	$	12,196		$	12,878		$	11,853
Inflows	672			579			199
Outflows	(349		)	(1,408		)	(298		)
Net inflows (outflows)	323			(829		)	(99		)
Market appreciation (depreciation)	638			206			94
Distributions	(16		)	(59		)	(25		)
Total increase (decrease)	945			(682		)	(30		)
Assets under management, end of period	$	13,141		$	12,196		$	11,823		7.7	%	11.1	%
Percentage of total assets under management	18.6		%	18.3		%	18.7		%
Average assets under management	$	12,633		$	12,872		$	11,867		(1.9	%)	6.5	%
_________________________ (1) Prior period amounts have been recast to include model-based portfolios which were previously classified as assets under advisement.



Cohen & Steers, Inc. and Subsidiaries
Assets Under Management
By Investment Strategy - continued
(in millions)
	Three Months Ended ⁽¹⁾									% Change From
	September 30, 2019			June 30, 2019			September 30, 2018			June 30, 2019		September 30, 2018
Global Listed Infrastructure
Assets under management, beginning of period	$	7,544		$	7,387		$	6,953
Inflows	212			160			93
Outflows	(92		)	(200		)	(77		)
Net inflows (outflows)	120			(40		)	16
Market appreciation (depreciation)	159			249			101
Distributions	(49		)	(52		)	(48		)
Total increase (decrease)	230			157			69
Assets under management, end of period	$	7,774		$	7,544		$	7,022		3.0	%	10.7	%
Percentage of total assets under management	11.0		%	11.3		%	11.1		%
Average assets under management	$	7,650		$	7,412		$	7,065		3.2	%	8.3	%

Other
Assets under management, beginning of period	$	2,285		$	2,315		$	3,011
Inflows	61			34			103
Outflows	(132		)	(80		)	(252		)
Net inflows (outflows)	(71		)	(46		)	(149		)
Market appreciation (depreciation)	8			58			62
Distributions	(12		)	(21		)	(12		)
Transfers	—			(21		)	—
Total increase (decrease)	(75		)	(30		)	(99		)
Assets under management, end of period	$	2,210		$	2,285		$	2,912		(3.3	%)	(24.1	%)
Percentage of total assets under management	3.1		%	3.4		%	4.6		%
Average assets under management	$	2,230		$	2,285		$	2,986		(2.4	%)	(25.3	%)

Total
Assets under management, beginning of period	$	66,601		$	66,128		$	63,470
Inflows	3,954			3,955			2,383
Outflows	(2,824		)	(4,013		)	(2,459		)
Net inflows (outflows)	1,130			(58		)	(76		)
Market appreciation (depreciation)	3,751			1,801			778
Distributions	(644		)	(1,270		)	(802		)
Total increase (decrease)	4,237			473			(100		)
Assets under management, end of period	$	70,838		$	66,601		$	63,370		6.4	%	11.8	%
Average assets under management	$	68,643		$	66,640		$	63,706		3.0	%	7.7	%
_________________________ (1) Prior period amounts have been recast to include model-based portfolios which were previously classified as assets under advisement.



Cohen & Steers, Inc. and Subsidiaries
Assets Under Management
By Investment Strategy
(in millions)
	Nine Months Ended ⁽¹⁾
	September 30, 2019			September 30, 2018			% Change
U.S. Real Estate
Assets under management, beginning of period	$	24,627		$	29,241
Inflows	4,893			3,362
Outflows	(4,008		)	(3,739		)
Net inflows (outflows)	885			(377		)
Market appreciation (depreciation)	7,335			497
Distributions	(1,885		)	(1,985		)
Transfers	2			(193		)
Total increase (decrease)	6,337			(2,058		)
Assets under management, end of period	$	30,964		$	27,183		13.9	%
Percentage of total assets under management	43.7		%	42.9		%
Average assets under management	$	28,586		$	26,798		6.7	%

Preferred Securities
Assets under management, beginning of period	$	13,068		$	14,435
Inflows	4,406			3,200
Outflows	(2,274		)	(2,743		)
Net inflows (outflows)	2,132			457
Market appreciation (depreciation)	1,966			(232		)
Distributions	(436		)	(423		)
Transfers	19			193
Total increase (decrease)	3,681			(5		)
Assets under management, end of period	$	16,749		$	14,430		16.1	%
Percentage of total assets under management	23.6		%	22.8		%
Average assets under management	$	15,232		$	14,330		6.3	%

Global/International Real Estate
Assets under management, beginning of period	$	11,047		$	11,194
Inflows	1,912			1,331
Outflows	(2,226		)	(855		)
Net inflows (outflows)	(314		)	476
Market appreciation (depreciation)	2,502			294
Distributions	(94		)	(141		)
Conversion	—			—
Total increase (decrease)	2,094			629
Assets under management, end of period	$	13,141		$	11,823		11.1	%
Percentage of total assets under management	18.6		%	18.7		%
Average assets under management	$	12,532		$	11,401		9.9	%
_________________________ (1) Prior period amounts have been recast to include model-based portfolios which were previously classified as assets under advisement.



Cohen & Steers, Inc. and Subsidiaries
Assets Under Management
By Investment Strategy - continued
(in millions)
	Nine Months Ended ⁽¹⁾
	September 30, 2019			September 30, 2018			% Change
Global Listed Infrastructure
Assets under management, beginning of period	$	6,517		$	6,982
Inflows	494			465
Outflows	(414		)	(287		)
Net inflows (outflows)	80			178
Market appreciation (depreciation)	1,326			10
Distributions	(149		)	(148		)
Total increase (decrease)	1,257			40
Assets under management, end of period	$	7,774		$	7,022		10.7	%
Percentage of total assets under management	11.0		%	11.1		%
Average assets under management	$	7,383		$	6,956		6.1	%

Other
Assets under management, beginning of period	$	2,594		$	3,638
Inflows	155			186
Outflows	(792		)	(911		)
Net inflows (outflows)	(637		)	(725		)
Market appreciation (depreciation)	319			45
Distributions	(45		)	(46		)
Transfers	(21		)	—
Total increase (decrease)	(384		)	(726		)
Assets under management, end of period	$	2,210		$	2,912		(24.1	%)
Percentage of total assets under management	3.1		%	4.6		%
Average assets under management	$	2,310		$	3,183		(27.4	%)

Total
Assets under management, beginning of period	$	57,853		$	65,490
Inflows	11,860			8,544
Outflows	(9,714		)	(8,535		)
Net inflows (outflows)	2,146			9
Market appreciation (depreciation)	13,448			614
Distributions	(2,609		)	(2,743		)
Total increase (decrease)	12,985			(2,120		)
Assets under management, end of period	$	70,838		$	63,370		11.8	%
Average assets under management	$	66,043		$	62,668		5.4	%
_________________________ (1) Prior period amounts have been recast to include model-based portfolios which were previously classified as assets under advisement.

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

(in thousands, except per share data)	Three Months Ended
	September 30, 2019				June 30, 2019				September 30, 2018
Net income attributable to common stockholders, U.S. GAAP	$	34,017			$	31,333			$	30,790
Seed investments ⁽¹⁾	(1,630		)		(1,819		)		(614		)
Accelerated vesting of restricted stock units	387				470				—
Foreign currency exchange (gains) losses—net⁽²⁾	(1,310		)		(267		)		(217		)
Tax adjustments ⁽³⁾	(207		)		(35		)		313
Net income attributable to common stockholders, as adjusted	$	31,257			$	29,682			$	30,272

Diluted weighted average shares outstanding	48,412				48,175				47,524
Diluted earnings per share, U.S. GAAP	$	0.70			$	0.65			$	0.65
Seed investments ⁽¹⁾	(0.03		)		(0.03		)		(0.01		)
Accelerated vesting of restricted stock units	0.01				0.01				—
Foreign currency exchange (gains) losses—net⁽²⁾	(0.03		)		(0.01		)		(0.01		)
Tax adjustments	—			*	—			*	0.01
Diluted earnings per share, as adjusted	$	0.65			$	0.62			$	0.64
_________________________ * Amounts round to less than $0.01 per share. (1) Represents amounts related to the deconsolidation of seed investments in Company-sponsored funds as well as non-operating (income) loss from seed investments that were not consolidated. (2) Represents net foreign currency exchange gains associated with U.S. dollar-denominated assets held by certain foreign subsidiaries. (3) Tax adjustments are summarized in the following table:
(in thousands)	Three Months Ended
	September 30, 2019				June 30, 2019				September 30, 2018
Tax effect of non-GAAP adjustments	$	(200	)		$	(33	)		$	313
Delivery of restricted stock units	(7		)		(2		)		—
Total tax adjustments	$	(207	)		$	(35	)		$	313



Reconciliation of U.S. GAAP Operating Income and U.S. GAAP Operating Margin to Operating Income, As Adjusted, and Operating Margin, As Adjusted

(in thousands, except percentages)	Three Months Ended
	September 30, 2019			June 30, 2019			September 30, 2018
Revenue, U.S. GAAP	$	104,965		$	101,792		$	98,331
Seed investments ⁽¹⁾	(99		)	(40		)	(180		)
Revenue, as adjusted	$	104,866		$	101,752		$	98,151

Expenses, U.S. GAAP	$	64,832		$	63,688		$	59,108
Seed investments ⁽¹⁾	(306		)	(297		)	(373		)
Accelerated vesting of restricted stock units	(387		)	(470		)	—
Expenses, as adjusted	$	64,139		$	62,921		$	58,735

Operating income, U.S. GAAP	$	40,133		$	38,104		$	39,223
Seed investments ⁽¹⁾	207			257			193
Accelerated vesting of restricted stock units	387			470			—
Operating income, as adjusted	$	40,727		$	38,831		$	39,416

Operating margin, U.S. GAAP	38.2		%	37.4		%	39.9		%
Operating margin, as adjusted	38.8		%	38.2		%	40.2		%
_________________________ (1) Represents amounts related to the deconsolidation of seed investments in Company-sponsored funds.



Reconciliation of U.S. GAAP Non-operating Income (Loss) to Non-operating Income (Loss), As Adjusted

(in thousands)	Three Months Ended
	September 30, 2019			June 30, 2019			September 30, 2018
Non-operating income (loss), U.S. GAAP	$	6,617		$	4,536		$	1,047
Seed investments ⁽¹⁾	(4,218		)	(3,392		)	252
Foreign currency exchange (gains) losses—net ⁽²⁾	(1,310		)	(267		)	(217		)
Non-operating income (loss), as adjusted	$	1,089		$	877		$	1,082
_________________________ (1) Represents amounts related to the deconsolidation of seed investments in Company-sponsored funds as well as non-operating (income) loss from seed investments that were not consolidated. (2) Represents net foreign currency exchange gains associated with U.S. dollar-denominated assets held by certain foreign subsidiaries.