EX-99.2 3 cns-earningsreleasex63021e.htm CNS EARNINGS RELEASE

                                

Contact:

Matthew S. Stadler

Executive Vice President

Chief Financial Officer

Cohen & Steers, Inc.

Tel (212) 446-9168

COHEN & STEERS REPORTS RESULTS FOR SECOND QUARTER 2021

•Diluted EPS of $0.95; $0.94, as adjusted

•Operating margin of 41.4%; 43.4%, as adjusted

•Ending AUM of $96.2 billion; average AUM of $92.9 billion

•Net inflows of $2.6 billion

NEW YORK, NY, July 21, 2021—Cohen & Steers, Inc. (NYSE: CNS) today reported its operating results for the quarter ended June 30, 2021.

Financial Highlights

(in thousands, except percentages and per share data)			Three Months Ended
			June 30, 2021						March 31, 2021						June 30, 2020
U.S. GAAP
Revenue			$	144,269					$	125,747					$	94,087
Expenses			$	84,572					$	73,809					$	58,792
Operating income (loss)			$	59,697					$	51,938					$	35,295
Non-operating income (loss)			$	8,536					$	4,953					$	7,953
Net income attributable to common stockholders			$	46,579					$	48,852					$	28,520
Diluted earnings per share			$	0.95					$	1.00					$	0.59
Operating margin			41.4		%				41.3		%				37.5		%
As Adjusted (1)
Net income attributable to common stockholders			$	45,917					$	38,629					$	26,154
Diluted earnings per share			$	0.94					$	0.79					$	0.54
Operating margin			43.4		%				42.3		%				37.7		%
_________________________ (1)These amounts represent the company's as adjusted results. Please refer to pages 18-19 for reconciliations of U.S. GAAP to as adjusted results.

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U.S. GAAP

This section discusses the financial results of the company as presented in accordance with U.S. GAAP.

Revenue

Revenue for the second quarter of 2021 was $144.3 million, an increase of $18.5 million, or 14.7% from $125.7 million for the first quarter of 2021. The change was primarily due to an increase in investment advisory and administration fees of $17.4 million resulting from higher average assets under management across all three investment vehicles, the recognition of $2.3 million of performance fees from certain institutional accounts and one additional day in the quarter. Changes to investment advisory and administration fee revenue by investment vehicle were as follows:

•Institutional account revenue increased $6.4 million to $37.4 million;

•Open-end fund revenue increased $9.1 million to $69.7 million; and

•Closed-end fund revenue increased $1.9 million to $27.3 million.

Expenses

Expenses for the second quarter of 2021 were $84.6 million, an increase of $10.8 million, or 14.6% from $73.8 million for the first quarter of 2021. The change was primarily due to:

•Higher employee compensation and benefits of $7.5 million, primarily due to higher incentive compensation of $4.4 million and higher accelerated vesting of certain restricted stock units of $1.6 million;

•An increase in distribution and services fees of $2.3 million, primarily due to higher average assets under management in U.S. open-end funds; and

•Higher general and administrative expenses of $1.1 million, primarily due to increased professional fees of $536,000, of which $260,000 was attributable to recruitment fees, and higher travel and entertainment expenses of $114,000.

Operating Margin

Operating margin was 41.4% for the second quarter of 2021, compared with 41.3% for the first quarter of 2021. Operating margin represents the ratio of operating income to revenue.

Non-operating Income (Loss)

(in thousands)			Three Months Ended
			June 30, 2021																		March 31, 2021
			Seed Investments						Other						Total						Seed Investments						Other						Total
Interest and dividend income—net			$	817					$	20					$	837					$	604					$	12					$	616
Gain (loss) from investments—net			7,778						—						7,778						4,485						74						4,559
Foreign currency gains (losses)—net			223						(302)						(79)						191						(413)						(222)
Total non-operating income (loss)			$	8,818		(1)			$	(282)					$	8,536					$	5,280		(1)			$	(327)					$	4,953
_________________________ (1) Seed investments included net income of $5.8 million and $3.6 million attributable to third-party interests for the three months ended June 30, 2021 and March 31, 2021, respectively.

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Income Taxes

The effective tax rate for the second quarter of 2021 was 25.4%, compared with 8.4% for the first quarter of 2021. The effective tax rate for the second quarter of 2021 differed from the U.S. federal statutory rate of 21.0% primarily due to state, local and foreign income taxes and limitations on the deductibility of executive compensation, partially offset by the cumulative effect of a change in the company’s estimated effective tax rate for the year. The effective tax rate for the first quarter of 2021 differed from the U.S. federal statutory rate of 21.0% primarily due to state, local and foreign income taxes which were more than offset by discrete tax items, primarily related to the reversal of certain liabilities associated with unrecognized tax benefits and the appreciated value of the restricted stock units delivered in January 2021.

As Adjusted

This section discusses as adjusted results. Please refer to pages 18-19 for reconciliations of U.S. GAAP to as adjusted results.

Revenue

Revenue, as adjusted, for the second quarter of 2021 was $144.4 million, compared with $125.8 million for the first quarter of 2021.

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

Expenses

Expenses, as adjusted, for the second quarter of 2021 were $81.8 million, compared with $72.6 million for the first quarter of 2021.

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

•The 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 second quarter of 2021 was 43.4%, compared with 42.3% for the first quarter of 2021.

Non-operating Income (Loss)

Non-operating loss, as adjusted, for the second quarter of 2021 was $120,000, compared with $118,000 for the first quarter of 2021.

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

•Results from the company's seed investments; and

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

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Income Taxes

The effective tax rate, as adjusted, for the second quarter of 2021 was 26.5%, compared with 27.3% for the first quarter of 2021.

The effective tax rate, as adjusted, excluded the tax effects associated with items noted above, as well as discrete tax items for both periods.

Assets Under Management

(in millions)			As of
			June 30, 2021						March 31, 2021						% Change
By Investment Vehicle
Institutional accounts			$	40,156					$	36,538					9.9		%
Open-end funds			43,532						38,623						12.7		%
Closed-end funds			12,537						11,879						5.5		%
Total			$	96,225					$	87,040					10.6		%
By Investment Strategy
U.S. real estate			$	41,865					$	36,984					13.2		%
Preferred securities			25,498						23,790						7.2		%
Global/international real estate			18,220						16,421						11.0		%
Global listed infrastructure			8,246						7,604						8.4		%
Other			2,396						2,241						6.9		%
Total			$	96,225					$	87,040					10.6		%

Assets under management at June 30, 2021 were $96.2 billion, an increase of 10.6% from $87.0 billion at March 31, 2021. The increase was driven by net inflows of $2.6 billion and market appreciation of $7.4 billion, partially offset by distributions of $769 million.

Institutional Accounts

Assets under management in institutional accounts at June 30, 2021 were $40.2 billion, an increase of 9.9% from $36.5 billion at March 31, 2021. The change was primarily due to the following:

•Advisory:    

◦Net inflows of $1.0 billion, including $443 million into U.S. real estate and $314 million into preferred securities; and

◦Market appreciation of $1.8 billion, including $797 million from global/international real estate and $668 million from U.S. real estate.

•Japan subadvisory:

◦Net outflows of $272 million, including $110 million from global/international real estate and $103 million from U.S. real estate;

◦Market appreciation of $1.2 billion, including $919 million from U.S. real estate; and

◦Distributions of $309 million, including $278 million from U.S. real estate.

•Subadvisory excluding Japan:

◦Net outflows of $375 million, including $190 million from global/international real estate and $60 million from U.S. real estate; and

◦Market appreciation of $578 million, including $405 million from global/international real estate.

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Open-end Funds

Assets under management in open-end funds at June 30, 2021 were $43.5 billion, an increase of 12.7% from $38.6 billion at March 31, 2021. The change was primarily due to the following:

•Net inflows of $2.1 billion, including $935 million into preferred securities, $588 million into U.S. real estate and $424 million into global/international real estate;

•Market appreciation of $3.1 billion, including $2.4 billion from U.S. real estate and $481 million from preferred securities; and

•Distributions of $312 million, including $165 million from preferred securities and $82 million from U.S. real estate.

Closed-end Funds

Assets under management in closed-end funds at June 30, 2021 were $12.5 billion, an increase of 5.5% from $11.9 billion at March 31, 2021. The increase was due to net inflows of $103 million and market appreciation of $703 million, partially offset by distributions of $148 million.

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Investment Performance at June 30, 2021

_________________________

(1)    Past performance is no guarantee of future results. Outperformance is determined by comparing the annualized investment performance of each investment strategy to the performance of specified reference benchmarks. Investment performance in excess of the performance of the benchmark is considered outperformance. The investment performance calculation of each investment strategy is based on all active accounts and investment models pursuing similar investment objectives. For accounts, actual investment performance is measured gross of fees and net of withholding taxes. For investment models, for which actual investment performance does not exist, the investment performance of a composite of accounts pursuing comparable investment objectives is used as a proxy for actual investment performance. The performance of the specified reference benchmark for each account and investment model is 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)    © 2021 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 June 30, 2021. 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 June 30, 2021, cash, cash equivalents and seed investments were $185.6 million, compared with $124.3 million as of March 31, 2021. As of June 30, 2021, stockholders' equity was $225.9 million, compared with $189.2 million as of March 31, 2021. The company had no debt.

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Conference Call Information

Cohen & Steers will host a conference call tomorrow, July 22, 2021 at 10:00 a.m. (ET) to discuss the company's second quarter results. Investors and analysts can access the live conference call by dialing 800-954-0627 (U.S.) or +1-212-231-2918 (international); passcode: 21995654. 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 July 22, 2021 and can be accessed at 800-633-8284 (U.S.) or +1-402-977-9140 (international); passcode: 21995654. 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 leading global investment manager specializing in real assets and alternative income, including real estate, preferred securities, infrastructure, resource equities, commodities, as well as multi-strategy solutions. Founded in 1986, the firm is headquartered in New York City, with offices in London, Dublin, 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, 2020 (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.

# # # #

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Cohen & Steers, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except per share data)
			Three Months Ended																		% Change From
			June 30, 2021						March 31, 2021						June 30, 2020						March 31, 2021						June 30, 2020
Revenue
Investment advisory and administration fees			$	134,348					$	116,921					$	86,648
Distribution and service fees			9,199						8,272						6,930
Other			722						554						509
Total revenue			144,269						125,747						94,087						14.7		%				53.3		%
Expenses
Employee compensation and benefits			53,241						45,762						34,320
Distribution and service fees			18,848						16,506						12,518
General and administrative			11,466						10,374						10,726
Depreciation and amortization			1,017						1,167						1,228
Total expenses			84,572						73,809						58,792						14.6		%				43.8		%
Operating income (loss)			59,697						51,938						35,295						14.9		%				69.1		%
Non-operating income (loss)
Interest and dividend income—net			837						616						893
Gain (loss) from investments—net			7,778						4,559						7,317
Foreign currency gains (losses)—net			(79)						(222)						(257)
Total non-operating income (loss)			8,536						4,953						7,953						72.3		%				7.3		%
Income before provision for income taxes			68,233						56,891						43,248						19.9		%				57.8		%
Provision for income taxes			15,827						4,461						11,086
Net income			52,406						52,430						32,162						—		%				62.9		%
Less: Net (income) loss attributable to redeemable noncontrolling interests			(5,827)						(3,578)						(3,642)
Net income attributable to common stockholders			$	46,579					$	48,852					$	28,520					(4.7		%)				63.3		%
Earnings per share attributable to common stockholders
Basic			$	0.96					$	1.01					$	0.60					(4.9		%)				61.8		%
Diluted			$	0.95					$	1.00					$	0.59					(5.1		%)				62.1		%
Dividends declared per share			$	0.45					$	0.45					$	0.39					—		%				15.4		%
Weighted average shares outstanding
Basic			48,285						48,145						47,826
Diluted			48,951						48,709						48,572

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Cohen & Steers, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except per share data)
			Six Months Ended
			June 30, 2021						June 30, 2020						% Change
Revenue
Investment advisory and administration fees			$	251,269					$	183,937
Distribution and service fees			17,471						14,713
Other			1,276						1,267
Total revenue			270,016						199,917						35.1		%
Expenses
Employee compensation and benefits			99,003						72,937
Distribution and service fees			35,354						26,622
General and administrative			21,840						34,314
Depreciation and amortization			2,184						2,380
Total expenses			158,381						136,253						16.2		%
Operating income (loss)			111,635						63,664						75.4		%
Non-operating income (loss)
Interest and dividend income—net			1,453						2,042
Gain (loss) from investments—net			12,337						(14,710)
Foreign currency gains (losses)—net			(301)						778
Total non-operating income (loss)			13,489						(11,890)						*
Income before provision for income taxes			125,124						51,774						141.7		%
Provision for income taxes			20,288						11,544
Net income			104,836						40,230						160.6		%
Less: Net (income) loss attributable to redeemable noncontrolling interests			(9,405)						8,862
Net income attributable to common stockholders			$	95,431					$	49,092					94.4		%
Earnings per share attributable to common stockholders
Basic			$	1.98					$	1.03					92.5		%
Diluted			$	1.95					$	1.01					93.3		%
Dividends declared per share			$	0.90					$	0.78					15.4		%
Weighted average shares outstanding
Basic			48,216						47,739
Diluted			48,831						48,549
_________________________ * Not meaningful.

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Cohen & Steers, Inc. and Subsidiaries
Assets Under Management
By Investment Vehicle
(in millions)
			Three Months Ended																		% Change From
			June 30, 2021						March 31, 2021						June 30, 2020						March 31, 2021						June 30, 2020
Institutional Accounts
Assets under management, beginning of period			$	36,538					$	33,255					$	25,045
Inflows			1,826						2,335						1,904
Outflows			(1,454)						(748)						(523)
Net inflows (outflows)			372						1,587						1,381
Market appreciation (depreciation)			3,555						2,000						2,775
Distributions			(309)						(304)						(334)
Total increase (decrease)			3,618						3,283						3,822
Assets under management, end of period			$	40,156					$	36,538					$	28,867					9.9		%				39.1		%
Percentage of total assets under management			41.7		%				42.0		%				43.5		%
Average assets under management			$	39,103					$	34,622					$	27,111					12.9		%				44.2		%
Open-end Funds
Assets under management, beginning of period			$	38,623					$	35,160					$	24,561
Inflows			4,577						5,070						5,163
Outflows			(2,490)						(2,906)						(3,124)
Net inflows (outflows)			2,087						2,164						2,039
Market appreciation (depreciation)			3,134						1,537						2,898
Distributions			(312)						(238)						(577)
Total increase (decrease)			4,909						3,463						4,360
Assets under management, end of period			$	43,532					$	38,623					$	28,921					12.7		%				50.5		%
Percentage of total assets under management			45.2		%				44.4		%				43.6		%
Average assets under management			$	41,469					$	36,620					$	26,799					13.2		%				54.7		%
Closed-end Funds
Assets under management, beginning of period			$	11,879					$	11,493					$	7,763
Inflows			103						65						1
Outflows			—						—						—
Net inflows (outflows)			103						65						1
Market appreciation (depreciation)			703						469						903
Distributions			(148)						(148)						(128)
Total increase (decrease)			658						386						776
Assets under management, end of period			$	12,537					$	11,879					$	8,539					5.5		%				46.8		%
Percentage of total assets under management			13.0		%				13.6		%				12.9		%
Average assets under management			$	12,372					$	11,601					$	8,322					6.6		%				48.7		%
Total
Assets under management, beginning of period			$	87,040					$	79,908					$	57,369
Inflows			6,506						7,470						7,068
Outflows			(3,944)						(3,654)						(3,647)
Net inflows (outflows)			2,562						3,816						3,421
Market appreciation (depreciation)			7,392						4,006						6,576
Distributions			(769)						(690)						(1,039)
Total increase (decrease)			9,185						7,132						8,958
Assets under management, end of period			$	96,225					$	87,040					$	66,327					10.6		%				45.1		%
Average assets under management			$	92,944					$	82,843					$	62,232					12.2		%				49.4		%

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Cohen & Steers, Inc. and Subsidiaries
Assets Under Management
By Investment Vehicle
(in millions)
			Six Months Ended
			June 30, 2021						June 30, 2020						% Change
Institutional Accounts
Assets under management, beginning of period			$	33,255					$	31,813
Inflows			4,161						4,167
Outflows			(2,202)						(1,984)
Net inflows (outflows)			1,959						2,183
Market appreciation (depreciation)			5,555						(4,479)
Distributions			(613)						(650)
Total increase (decrease)			6,901						(2,946)
Assets under management, end of period			$	40,156					$	28,867					39.1		%
Percentage of total assets under management			41.7		%				43.5		%
Average assets under management			$	36,877					$	28,524					29.3		%
Open-end Funds
Assets under management, beginning of period			$	35,160					$	30,725
Inflows			9,647						9,540
Outflows			(5,396)						(7,434)
Net inflows (outflows)			4,251						2,106
Market appreciation (depreciation)			4,671						(3,106)
Distributions			(550)						(804)
Total increase (decrease)			8,372						(1,804)
Assets under management, end of period			$	43,532					$	28,921					50.5		%
Percentage of total assets under management			45.2		%				43.6		%
Average assets under management			$	39,064					$	28,329					37.9		%
Closed-end Funds
Assets under management, beginning of period			$	11,493					$	9,644
Inflows			168						404
Outflows			—						(88)
Net inflows (outflows)			168						316
Market appreciation (depreciation)			1,172						(1,165)
Distributions			(296)						(256)
Total increase (decrease)			1,044						(1,105)
Assets under management, end of period			$	12,537					$	8,539					46.8		%
Percentage of total assets under management			13.0		%				12.9		%
Average assets under management			$	11,989					$	8,804					36.2		%
Total
Assets under management, beginning of period			$	79,908					$	72,182
Inflows			13,976						14,111
Outflows			(7,598)						(9,506)
Net inflows (outflows)			6,378						4,605
Market appreciation (depreciation)			11,398						(8,750)
Distributions			(1,459)						(1,710)
Total increase (decrease)			16,317						(5,855)
Assets under management, end of period			$	96,225					$	66,327					45.1		%
Average assets under management			$	87,930					$	65,657					33.9		%

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Cohen & Steers, Inc. and Subsidiaries
Assets Under Management - Institutional Accounts
By Account Type
(in millions)
			Three Months Ended																		% Change From
			June 30, 2021						March 31, 2021						June 30, 2020						March 31, 2021						June 30, 2020
Advisory
Assets under management, beginning of period			$	20,279					$	17,628					$	13,048
Inflows			1,512						1,937						1,103
Outflows			(493)						(243)						(252)
Net inflows (outflows)			1,019						1,694						851
Market appreciation (depreciation)			1,817						957						1,352
Total increase (decrease)			2,836						2,651						2,203
Assets under management, end of period			$	23,115					$	20,279					$	15,251					14.0		%				51.6		%
Percentage of institutional assets under management			57.6		%				55.5		%				52.8		%
Average assets under management			$	22,084					$	18,900					$	14,366					16.8		%				53.7		%
Japan Subadvisory
Assets under management, beginning of period			$	9,924					$	9,720					$	7,792
Inflows			22						98						418
Outflows			(294)						(302)						(100)
Net inflows (outflows)			(272)						(204)						318
Market appreciation (depreciation)			1,160						712						960
Distributions			(309)						(304)						(334)
Total increase (decrease)			579						204						944
Assets under management, end of period			$	10,503					$	9,924					$	8,736					5.8		%				20.2		%
Percentage of institutional assets under management			26.2		%				27.2		%				30.3		%
Average assets under management			$	10,306					$	9,661					$	8,128					6.7		%				26.8		%
Subadvisory Excluding Japan
Assets under management, beginning of period			$	6,335					$	5,907					$	4,205
Inflows			292						300						383
Outflows			(667)						(203)						(171)
Net inflows (outflows)			(375)						97						212
Market appreciation (depreciation)			578						331						463
Total increase (decrease)			203						428						675
Assets under management, end of period			$	6,538					$	6,335					$	4,880					3.2		%				34.0		%
Percentage of institutional assets under management			16.3		%				17.3		%				16.9		%
Average assets under management			$	6,713					$	6,061					$	4,617					10.8		%				45.4		%
Total Institutional Accounts
Assets under management, beginning of period			$	36,538					$	33,255					$	25,045
Inflows			1,826						2,335						1,904
Outflows			(1,454)						(748)						(523)
Net inflows (outflows)			372						1,587						1,381
Market appreciation (depreciation)			3,555						2,000						2,775
Distributions			(309)						(304)						(334)
Total increase (decrease)			3,618						3,283						3,822
Assets under management, end of period			$	40,156					$	36,538					$	28,867					9.9		%				39.1		%
Average assets under management			$	39,103					$	34,622					$	27,111					12.9		%				44.2		%

12

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Cohen & Steers, Inc. and Subsidiaries
Assets Under Management - Institutional Accounts
By Account Type
(in millions)
			Six Months Ended
			June 30, 2021						June 30, 2020						% Change
Advisory
Assets under management, beginning of period			$	17,628					$	15,669
Inflows			3,449						2,537
Outflows			(736)						(989)
Net inflows (outflows)			2,713						1,548
Market appreciation (depreciation)			2,774						(1,966)
Total increase (decrease)			5,487						(418)
Assets under management, end of period			$	23,115					$	15,251					51.6		%
Percentage of institutional assets under management			57.6		%				52.8		%
Average assets under management			$	20,501					$	14,601					40.4		%
Japan Subadvisory
Assets under management, beginning of period			$	9,720					$	10,323
Inflows			120						976
Outflows			(596)						(378)
Net inflows (outflows)			(476)						598
Market appreciation (depreciation)			1,872						(1,535)
Distributions			(613)						(650)
Total increase (decrease)			783						(1,587)
Assets under management, end of period			$	10,503					$	8,736					20.2		%
Percentage of institutional assets under management			26.2		%				30.3		%
Average assets under management			$	9,985					$	8,866					12.6		%
Subadvisory Excluding Japan
Assets under management, beginning of period			$	5,907					$	5,821
Inflows			592						654
Outflows			(870)						(617)
Net inflows (outflows)			(278)						37
Market appreciation (depreciation)			909						(978)
Total increase (decrease)			631						(941)
Assets under management, end of period			$	6,538					$	4,880					34.0		%
Percentage of institutional assets under management			16.3		%				16.9		%
Average assets under management			$	6,391					$	5,057					26.4		%
Total Institutional Accounts
Assets under management, beginning of period			$	33,255					$	31,813
Inflows			4,161						4,167
Outflows			(2,202)						(1,984)
Net inflows (outflows)			1,959						2,183
Market appreciation (depreciation)			5,555						(4,479)
Distributions			(613)						(650)
Total increase (decrease)			6,901						(2,946)
Assets under management, end of period			$	40,156					$	28,867					39.1		%
Average assets under management			$	36,877					$	28,524					29.3		%

13

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Cohen & Steers, Inc. and Subsidiaries
Assets Under Management
By Investment Strategy
(in millions)
			Three Months Ended																		% Change From
			June 30, 2021						March 31, 2021						June 30, 2020						March 31, 2021						June 30, 2020
U.S. Real Estate
Assets under management, beginning of period			$	36,984					$	32,827					$	23,794
Inflows			2,592						3,126						3,596
Outflows			(1,723)						(1,391)						(1,522)
Net inflows (outflows)			869						1,735						2,074
Market appreciation (depreciation)			4,419						2,837						3,035
Distributions			(407)						(415)						(784)
Total increase (decrease)			4,881						4,157						4,325
Assets under management, end of period			$	41,865					$	36,984					$	28,119					13.2		%				48.9		%
Percentage of total assets under management			43.5		%				42.5		%				42.4		%
Average assets under management			$	40,269					$	34,512					$	25,642					16.7		%				57.0		%
Preferred Securities
Assets under management, beginning of period			$	23,790					$	23,185					$	14,872
Inflows			2,254						2,406						2,075
Outflows			(1,081)						(1,596)						(1,319)
Net inflows (outflows)			1,173						810						756
Market appreciation (depreciation)			750						2						1,653
Distributions			(215)						(207)						(165)
Transfers			—						—						—
Total increase (decrease)			1,708						605						2,244
Assets under management, end of period			$	25,498					$	23,790					$	17,116					7.2		%				49.0		%
Percentage of total assets under management			26.5		%				27.3		%				25.8		%
Average assets under management			$	24,546					$	23,526					$	16,422					4.3		%				49.5		%
Global/International Real Estate
Assets under management, beginning of period			$	16,421					$	15,214					$	11,005
Inflows			1,111						1,079						1,108
Outflows			(890)						(567)						(482)
Net inflows (outflows)			221						512						626
Market appreciation (depreciation)			1,664						709						1,059
Distributions			(86)						(14)						(31)
Total increase (decrease)			1,799						1,207						1,654
Assets under management, end of period			$	18,220					$	16,421					$	12,659					11.0		%				43.9		%
Percentage of total assets under management			18.9		%				18.9		%				19.1		%
Average assets under management			$	17,697					$	15,588					$	11,799					13.5		%				50.0		%

14

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Cohen & Steers, Inc. and Subsidiaries
Assets Under Management
By Investment Strategy - continued
(in millions)
			Three Months Ended																		% Change From
			June 30, 2021						March 31, 2021						June 30, 2020						March 31, 2021						June 30, 2020
Global Listed Infrastructure
Assets under management, beginning of period			$	7,604					$	6,729					$	6,175
Inflows			480						679						252
Outflows			(141)						(74)						(279)
Net inflows (outflows)			339						605						(27)
Market appreciation (depreciation)			355						315						670
Distributions			(52)						(45)						(50)
Total increase (decrease)			642						875						593
Assets under management, end of period			$	8,246					$	7,604					$	6,768					8.4		%				21.8		%
Percentage of total assets under management			8.6		%				8.7		%				10.2		%
Average assets under management			$	8,051					$	7,137					$	6,763					12.8		%				19.0		%
Other
Assets under management, beginning of period			$	2,241					$	1,953					$	1,523
Inflows			69						180						37
Outflows			(109)						(26)						(45)
Net inflows (outflows)			(40)						154						(8)
Market appreciation (depreciation)			204						143						159
Distributions			(9)						(9)						(9)
Total increase (decrease)			155						288						142
Assets under management, end of period			$	2,396					$	2,241					$	1,665					6.9		%				43.9		%
Percentage of total assets under management			2.5		%				2.6		%				2.5		%
Average assets under management			$	2,381					$	2,080					$	1,606					14.5		%				48.3		%
Total
Assets under management, beginning of period			$	87,040					$	79,908					$	57,369
Inflows			6,506						7,470						7,068
Outflows			(3,944)						(3,654)						(3,647)
Net inflows (outflows)			2,562						3,816						3,421
Market appreciation (depreciation)			7,392						4,006						6,576
Distributions			(769)						(690)						(1,039)
Total increase (decrease)			9,185						7,132						8,958
Assets under management, end of period			$	96,225					$	87,040					$	66,327					10.6		%				45.1		%
Average assets under management			$	92,944					$	82,843					$	62,232					12.2		%				49.4		%

15

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Cohen & Steers, Inc. and Subsidiaries
Assets Under Management
By Investment Strategy
(in millions)
			Six Months Ended
			June 30, 2021						June 30, 2020						% Change
U.S. Real Estate
Assets under management, beginning of period			$	32,827					$	31,024
Inflows			5,718						6,083
Outflows			(3,114)						(3,453)
Net inflows (outflows)			2,604						2,630
Market appreciation (depreciation)			7,256						(4,342)
Distributions			(822)						(1,224)
Transfers			—						31
Total increase (decrease)			9,038						(2,905)
Assets under management, end of period			$	41,865					$	28,119					48.9		%
Percentage of total assets under management			43.5		%				42.4		%
Average assets under management			$	37,408					$	27,595					35.6		%
Preferred Securities
Assets under management, beginning of period			$	23,185					$	17,581
Inflows			4,660						4,531
Outflows			(2,677)						(3,895)
Net inflows (outflows)			1,983						636
Market appreciation (depreciation)			752						(742)
Distributions			(422)						(328)
Transfers			—						(31)
Total increase (decrease)			2,313						(465)
Assets under management, end of period			$	25,498					$	17,116					49.0		%
Percentage of total assets under management			26.5		%				25.8		%
Average assets under management			$	24,043					$	16,856					42.6		%
Global/International Real Estate
Assets under management, beginning of period			$	15,214					$	13,509
Inflows			2,190						2,855
Outflows			(1,457)						(1,380)
Net inflows (outflows)			733						1,475
Market appreciation (depreciation)			2,373						(2,286)
Distributions			(100)						(39)
Total increase (decrease)			3,006						(850)
Assets under management, end of period			$	18,220					$	12,659					43.9		%
Percentage of total assets under management			18.9		%				19.1		%
Average assets under management			$	16,660					$	12,288					35.6		%

16

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Cohen & Steers, Inc. and Subsidiaries
Assets Under Management
By Investment Strategy - continued
(in millions)
			Six Months Ended
			June 30, 2021						June 30, 2020						% Change
Global Listed Infrastructure
Assets under management, beginning of period			$	6,729					$	8,076
Inflows			1,159						542
Outflows			(215)						(668)
Net inflows (outflows)			944						(126)
Market appreciation (depreciation)			670						(1,078)
Distributions			(97)						(104)
Total increase (decrease)			1,517						(1,308)
Assets under management, end of period			$	8,246					$	6,768					21.8		%
Percentage of total assets under management			8.6		%				10.2		%
Average assets under management			$	7,595					$	7,189					5.6		%
Other
Assets under management, beginning of period			$	1,953					$	1,992
Inflows			249						100
Outflows			(135)						(110)
Net inflows (outflows)			114						(10)
Market appreciation (depreciation)			347						(302)
Distributions			(18)						(15)
Total increase (decrease)			443						(327)
Assets under management, end of period			$	2,396					$	1,665					43.9		%
Percentage of total assets under management			2.5		%				2.5		%
Average assets under management			$	2,224					$	1,729					28.6		%
Total
Assets under management, beginning of period			$	79,908					$	72,182
Inflows			13,976						14,111
Outflows			(7,598)						(9,506)
Net inflows (outflows)			6,378						4,605
Market appreciation (depreciation)			11,398						(8,750)
Distributions			(1,459)						(1,710)
Total increase (decrease)			16,317						(5,855)
Assets under management, end of period			$	96,225					$	66,327					45.1		%
Average assets under management			$	87,930					$	65,657					33.9		%

17

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Reconciliations of U.S. GAAP to As Adjusted Financial Results

Management believes that use of the following as adjusted (non-GAAP) financial results provides greater transparency into the company's operating performance. In addition, these as adjusted financial results are used to prepare the company's internal management reports which are used in evaluating its business.

While management believes that these as adjusted financial results are useful in evaluating 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 to As Adjusted Financial Results Net Income (Loss) Attributable to Common Stockholders and Diluted Earnings per Share
(in thousands, except per share data)			Three Months Ended
			June 30, 2021						March 31, 2021						June 30, 2020
Net income attributable to common stockholders, U.S. GAAP			$	46,579					$	48,852					$	28,520
Seed investments (1)			(2,752)						(1,512)						(3,885)
Accelerated vesting of restricted stock units			2,664						1,088						—
Foreign currency exchange (gains) losses—net (2)			162						209						(117)
Tax adjustments (3)			(736)						(10,008)						1,636
Net income attributable to common stockholders, as adjusted			$	45,917					$	38,629					$	26,154
Diluted weighted average shares outstanding			48,951						48,709						48,572
Diluted earnings per share, U.S. GAAP			$	0.95					$	1.00					$	0.59
Seed investments			(0.06)						(0.03)						(0.08)
Accelerated vesting of restricted stock units			0.06						0.02						—
Foreign currency exchange (gains) losses—net			0.01						0.01						—			*
Tax adjustments			(0.02)						(0.21)						0.03
Diluted earnings per share, as adjusted			$	0.94					$	0.79					$	0.54
_________________________ * 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) losses associated with U.S. dollar-denominated assets held by certain foreign subsidiaries. (3)Tax adjustments are summarized in the following table:
Discrete tax items			$	(10)					$	(10,239)					$	13
Tax effect of adjustments included above			(726)						231						1,623
Total tax adjustments			$	(736)					$	(10,008)					$	1,636

18

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Reconciliation of U.S. GAAP to As Adjusted Financial Results Revenue, Expenses, Operating Income (Loss) and Operating Margin
(in thousands, except percentages)			Three Months Ended
			June 30, 2021						March 31, 2021						June 30, 2020
Revenue, U.S. GAAP			$	144,269					$	125,747					$	94,087
Seed investments (1)			105						94						(60)
Revenue, as adjusted			$	144,374					$	125,841					$	94,027
Expenses, U.S. GAAP			$	84,572					$	73,809					$	58,792
Seed investments (1)			(134)						(96)						(229)
Accelerated vesting of restricted stock units			(2,664)						(1,088)						—
Expenses, as adjusted			$	81,774					$	72,625					$	58,563
Operating income, U.S. GAAP			$	59,697					$	51,938					$	35,295
Seed investments (1)			239						190						169
Accelerated vesting of restricted stock units			2,664						1,088						—
Operating income, as adjusted			$	62,600					$	53,216					$	35,464
Operating margin, U.S. GAAP			41.4		%				41.3		%				37.5		%
Operating margin, as adjusted			43.4		%				42.3		%				37.7		%
__________________________ (1)Represents amounts related to the deconsolidation of seed investments in company-sponsored funds.

Reconciliation of U.S. GAAP to As Adjusted Financial Results Non-operating Income (Loss)
(in thousands)			Three Months Ended
			June 30, 2021						March 31, 2021						June 30, 2020
Non-operating income (loss), U.S. GAAP			$	8,536					$	4,953					$	7,953
Seed investments (1)			(8,818)						(5,280)						(7,696)
Foreign currency exchange (gains) losses—net (2)			162						209						(117)
Non-operating income (loss), as adjusted			$	(120)					$	(118)					$	140
_________________________ (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) losses associated with U.S. dollar-denominated assets held by certain foreign subsidiaries.

19