Cohen & Steers (CNS) 20 Apr 232023 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to the Cohen & Steers First Quarter 2023 Earnings Conference Call.

During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded, Thursday, April 20, 2023.

to President conference Cohen and like Heller, to & now Vice Senior Corporate would turn over the Brian Steers. I Counsel of ahead. go Please

Thank First & Call. you, the XXXX Earnings Conference and Steers to welcome Quarter Cohen

me Financial Matt Jon Chief Cheigh. Joining Harvey; Investment our Officer, our Officer, Stadler; Chief Joe are our Chief and Officer, Executive

release on to believe I statements solicitation earnings of our remind of other forward-looking some that to but to you want are update these and could due Form any answers forward-looking any statements the may recent differ filings. available those constitute first questions on sell to Further, or of or include duty of in report your information reasonable XX-K, other actual outcomes of a none quarter based the to an to our presentation, statements. accompanying and us, buy securities factors, fund offer vehicle. statements. our our We currently our We most an annual described SEC assume comments materially and including to offer number investment no

are our financial in Our evaluating filings The that www.cohenandsteers.com. reasonably financial at and results. measures financial SEC performance. is of included should meaningful we are in these presentation, links in referred contains our and Relations presentation earnings section release available. to in financial A conjunction site read well non-GAAP the the extent the measures with earnings to Web release as Investor as non-GAAP available of as, our measures as reconciliation believe These be non-GAAP presentation to also adjusted our measures GAAP

to Matt. With that, I'll the turn over call

earnings dividends results. focus as Consistent quarters, remarks earned Thank on my you, and results January this adjusted morning effective previous on of our will slide with that, on GAAP earnings interest such X, through XX and XX included and morning. results Brian, our investments. Note found good on release, reconciliation A XX be of presentation. pages to XX corporate the of adjusted can as through the seed

was higher from in assets $XXX.X earnings Yesterday, $XXX.X year's million the of to under we vehicles, quarter quarter, management The and average reported and $X.XX million in due $X.XX year's sequentially. $XXX.X three types quarter, investment million was prior to share, increase $X.XX in the compared across compared the prior revenue with the in quarter, per fourth in partially days two by primarily quarter. the all sequentially. of fewer offset Revenue

in was million quarter, and income rate prior fee effective XX.X Operating XX.X the in sequentially. with basis was Our $XX in the compared million points quarter. compared million points year's quarter, with first the $XX.X fourth quarter, $XX.X the basis in

revenue XX.X%, consistent new from to primarily X. quarter to quarter commenced operating was guidance G&A on our Compensation XX% primarily due last our benefits, due from headquarters, lease increased and the ratio the for full X.X% the our in a on rent with expense provided increase the of December call. and to quarter where corporate first XX.X% higher for And margin And was G&A. the to quarter. Expenses decreased compensation higher fourth last

to expect by We new occupy year-end. our space

the was than the on rate quarter, last for call. provided tax effective Our guidance XX.XX% slightly our lower

and quarters. and earnings the four corporate trailing investments cash and of sets and forth liquid current cash treasury U.S. our the equivalents, presentation investments, XX for securities, Page seed

we revolving the on to facility $XXX from million credit arising of vesting restricted borrowings that tax entered employees. participating to $XXX of satisfy liquidity, payment million March firm's as stock totaled last withholding we XX, and had common customary no stock repurchase delivery liquidity the units employee quarter. as At at January end, of reflected three-year Firm quarter-end, $XXX.X into the bonuses obligations of well as quarter firm Our million XX. with compared on

XX, March distributions slightly offset at XX. institutional mandates. Assets down $XXX market of of under million our decrease outflows by $XX.X million due $XX.X billion update of an on will unfunded from of $XXX and net pipeline The flows appreciation and awarded to December at million. Harvey were Joe provide partially was billion management $XXX

to me Let discuss for second consider the remainder briefly of the and a few items year. quarter

is would maintain with are so of growth, XX.X%. compensation compensation to balance new respect the to and a environment opportunities, equal, revenue replacement First, a deliberate measured hires, talent that, both things we and being approach our expect benefits, and taking to and to we to ratio which all intended

we as system. expect and of establishing new G&A to our office, infrastructure we XXXX, costs opening majority lesser such a strategic recorded Singapore certain to trading initiatives, XX% associated relates Next, increase the and to with datacenter, extent from relocating new upgrading a London office, million and which order a in $XX.X our management headquarters, the XX% to other corporate our

we have at undertaken would costs, of our said, of effective remain all review expect G&A our to XX.XX%. expenses. will finally, rate environment, the we And these non comprehensive Excluding a we X% that X%. light in client-related tax to expect of increase That

like to will performance. investment it our Investment Chief over our Officer, to I'd discuss Now, turn who Jon Cheigh,

And CRE estate U.S. Then and and real and and I'd two commercial preferred topics, health you, for our our share impact REITs. conditions the performance of our Matt, the morning. our and outlook good for like values outlook Today, securities. debt, market to scorecard how investment our for Thank asset classes first views on systems banking major cover second, first the both performed. on forward European private

Turning our our for their scorecard to the quarter, of XX% performance AUM outperformed benchmark.

AUM our XX as end QX. months, last of For XX% the of the of outperformed versus XX%

record XX% our Morningstar, our below XX security extremely last from which it a quarter. XX%, strategies, standards. of average seen five XXX% our impacted by remained From perspective, open-end at while summary, where the and XX% were star batting down or months remains regional banking for we majority is the to perfect, dip In our of over XX%, and performance our competitive we track three, longer-term respectively. last relates exposure. AUM XX last AUM preferred is by five, performance The four have years strong nearly the For fund our rated underperforming

While results, short-term of clients this anniversaries XX team, our that and we have XX the preferred Scapell Cohen those highlight manage outperformed Elaine I Zaharis-Nikas at PMs results. award disappointed year to winning and want our celebrating & XX-year Bill of quarter-to-quarter with senior don't years, them. we Over the Steers. their in are those

are outperformance. this in asset consistent generate team's allocation While in in and we extremely long-term ability the tax-advantaged it's generating to the feature performance our importance a class, income, was confident of quarter setback, and meaningful and

recovery global equities continued the X.X%; their commodities For and up down notably aggregate up Barclays global the assets with quarter, X%, risk X.X%.

REITs XXX performance technology large In stock last respectively. returns Equity dominated was and the heavily the Listed X.X% infrastructure up X%. U.S. securities year, being global but outperformance X.X% asset classes up our cap with lagged by material up and contrast as and Listed evidenced down posted generally preferred X.X%. following headline only XXXX, index equities. to positive median by underperformed S&P infrastructure stocks X.X% indices in

we up economy and activity In and context well. Passenger to respectively toll transportation in perform idiosyncratic and continue persistent subsector in and expect better passenger due as issues. albeit marine of sensitive expected X% and relatively subsectors to improving such more Europe. with ports part economic roads XX% industrial led to the lagged, the The than economic inflation volumes below falling both railway infrastructure growth, airports trend way

attributes. in interest and Investor infrastructure those continues listed grow to both private given

negative Our possible the two largest between feedback asset banking the and were preferred estate classes REITs volatility by securities sector and banks. and in of U.S. both impacted real

made is preferred the let's about of First, half with securities Europe U.S. discuss and where XX% universe in the up approximately half in banks of

And, the banks that should These rise. lower duration good exception smaller risk. Post unlike benefit vigilant Europe and interest in system tightened the without regulators and well friendly. In over capitalized liquidity as interest view, assets have moves including the more European been about U.S. made with banks. GFC, credit banking rate safer permanently regulators is consistently requirements capital with liquidity. rates

U.S., for and did This strong the of important for But, and preferreds. become us, improving has the and systemically of margin. risk argues relaxed approximately more picture XXXX have banks regional all healthy last increased To the credit years. credit over at bank tail long capital very this In banks European a a five regulators the smaller U.S. possibly liquidity.

portfolios, expect pockets we So, quality. tail our and credit weakness of repositioned have within that long

preferreds. what I earnings referenced for we understand critical Europe, investors about common in for positive global precisely saw of negative for it's suspended. expect GFC. regulations space much As being we that increasing, loan These think investors. that that are is buybacks can be This boost while banking being period, for certain bank more preferred U.S. positives the slowing shareholders bank shifts reduced common share and equity today Like clear we or liquidity, to raised, post would growth moves being common

preferreds. interest believe And are rates this their income will also near support including peak. we Cyclically, fixed

regulation support banks So have conservative and with preferreds creating we tailwinds, strong investment reset new valuation cycle. for believe and more credit

of REITs, reiter heard Turning CRE any to the question, next the financial drop? shoe to have debt the press regular is would

SVB REITs represent first, companies, highly mortgage Estate that two the the following because from fragmented. underperformed Fiction. regional the facts over REITs report with events. to commercial entitled misconceptions community life important banks Fact such broader was to GSEs, of Market: balance the most And the It's lenders and a reaction less Commercial market the entirely X% than of the as other markets. The But, research Real with large one-third banks, we common that for securitized included, indices weeks by comprised quarter. and address market underperforming the Separating the of Debt some Recently, $X.X market. published question trillion insurance

gets REIT loans focus, much outstanding of media X% represents it and XX% of only Second, office the while the about market. of

appreciation can where last XX% Third, to average XX% to peak property the XX% mind REIT from are to ratios Because years. of the occur. leverage this, or we one the XX XX% to down so average, believe while significant XX% may to over on the keep price closer refinancing needs come versus in values X

long-term cases, balance are increases. of against interest hedged fixed rate two-thirds rate all And many protect certainly those but mortgages with about the not floating. Last, are in

So, losses from in deviate to rise cycle historical that as this what likely they will all patterns. often we do mean. does Credit believe But, little see will basis recession.

we to lower indices the in down still If to private some are market, anything, loan GFC XX% the note, improvement average. losses and real than seeing and be XX%. flow XX% post estate In private vehicles prices X% deal emerge from only to observing in peak. as the reported generally cases beginning private down But may certain implies underwriting credit are

to likely So, go. still more

over less on small activity, full a businesses, will construction and Credit smaller discipline and will developers. be X-year private this positive on most impact X- means GDP. rental less cycle, tightening the supply, pullback a growth over loans horizon. construction for and impact local values banks and building, a have from acute regional But more should which A asset to

declines equity little are either many REITs? sheets offense will already, consistent prices that generally does REITS picture balance transition early this debt and Our leverage 'XX legacy share on to meaningful healthy are new players views while next. our and What year should with shared local recession, dealing for go with XXXX this means cases to in private REIT which generally remains in to for access private capital REIT later or problems. January, or allow recovery have discounted all and

likely of as take For be the private the listed recession And real both opportunities. prove Last, enough believe recovery using allocate REIT believe should and of a of capital cycle lot of different money private good same recession for out the to from clients two we will REITs, a for repriced vintage capitalize to transition out. or plays but rebalance And, listed of estate. new in year year Cohen one the XXXX. recap that Steers, do over be course things. savvy thinking haven't we ways to Either we to will investors into approach early or XXXX vehicles on the listed made we in &

With turn Joe. that, to me call over let the

recession. would like to our turn review I for our first Thank fundamentals. didn't begin Then, the of and we calls, Those with a good about In of business some quarter prior include forecast banks. prominent views you, talked failure to Jon, type Today, outlook. morning. of an our average

breaking Yet, a which has event tighter know point credit. now for mid-March, appears a The all zero in liquidity financial adjust meaningful we now. normalized links to in Federal the banking rates. more our contained As emerged weak be will interest interest manifest Reserve system we rates as more for to found from in

storm of more protracted. the our asset among thorough was real quarter, securities recession sector. our it shifted issuers to an banks in we've sources storm it being the largest wasn't margin, something largest for our in If credit perfect a outlook the for preferred at average So, with estate and from classes the the commercial strategy a

supply together real cycle sector asset contracting headwinds the at the affecting inflation our raise with Bank the that potentially margin money is inflation down strategies. odds sensitive breaking

Our underperform not real measured underperform stocks stocks while market in estate the by equity-oriented quarter appraisals for adjust outperform real our which strategies the versus strategies dynamic timing lag as the REIT bonds. listed do Listed preferred lead private of estate performance. private

last prices had to the declines price real estate outflows beginning catch $XXX down process first begun have we firmwide In up marked quarter, Private with be real estate of of to listed million. year. the

declines fundamental in financial and the wealth Both after of peaking bank's reflects in outflows strategies and including This the of values, March. rates, asset our to the interest outflows contributed recession. primarily higher was specter the environment of consecutive inflation in in institutional the channels stock fourth the preferred macroeconomic quarter shift and situation

In which million. were offset total had of U.S. million $XXX REIT inflows preferreds strategy by $XXX partially of outflows

end the quarter the fund Real were net by funds, of outflows in and lower inflows portfolios XXth of quarter in straight and subscriptions funds the offset Open all for volatility, open model XXXX. open Assets CCAP inflows of $XXX into XX% million reflecting out offshore experienced funds million change partially Infrastructure regime Listed Global inflows based by modest end Multi-strategy pace also than inflows. Our led $XXX our into had with portfolios end U.S.

redemptions were Likewise, XX% lower. also

outflows, to preferred and end wirehouse programs were Our at XX% strategies bank. private Preferred from fund open model related a a

in led U.S. Daiwa clients by Real representing Subadvisory funds Management's Institutional Estate advisory U.S. Global million net $XXX the channel subadvisory had quarter $XX REIT inflows of Japan million three straight trimming, by strongest net one subadvise. with net portfolios. outflows were of quarter, $XXX and the was outflows. mutual million led we of fifth and the of ex-Japan inflows that Asset

$XXX and totaling Four million plans. CIT the and pipeline in million, unfunded mandates. of awarded was million compared with one one $XX seven mandates $XXX newly seven of the million To Our last the change, was billion. U.S. the bridge mandates vehicle $X.XX during average REIT our were $XX quarter, funding million $XXX three there of in new canceled retirement year for quarter

and bank in pace failures were three other The portfolios macro regime estate. the real Both multi-strategy change quarter the real slowed first and assets global have the of searches.

slows scheduled Our geographic inevitably number process diversity. that prospects, of search of set by the in searches finals lower than reflect measured environments. normal strategies, mandate and That number in of volatile have opportunity as down we the said, healthy process their and a

in For economy several affect how change been have macro may quarters, about we asset the talking regime allocations. the

flows. X% drive now have examples money a can We seen of treasury meaningful how to yield X%

for At portfolios target private may higher to the increase time, to above investments weightings. to and We expect fixed combination weightings. fixed that range more the will the in allocations volatility lag income same yields markdowns compensate their a equity need illiquid value income of of the push normal portfolio drive

balance Allocators have will need and will factors the secular in the private the that versus momentum to markdowns be intermediate illiquidity term. investments

be will shifts including all at occur these turn liquidity while will trends. asset classes, to the these premium, affected ours as cycles valued As a return be positive, and by

levels our to strategies. investment relentless believe secular we for we remain accustomed. our steering batting We to which one-year to the our be strong that core are back tailwinds and allocations averages will performance long-term in with Combined

flows for attract discovery market meaningfully price have and "Why ask question, better can meaningfully as to market. resume We you market?" private should the in buy growth. listed should already prices All investors their private the pause if values believe REITs positioned we Investors should in the in marginal you corrected organic are well get the

weights, real we investors healthy below are infrastructure. In complements in and private to a more listed is estate that as and equity, It's investors believe capital. using growing discipline target demand infrastructure private are guide infrastructure, just

been For significant. been multi-strategy a inflation real became assets, theory has just reality. had What

sticky believe investors the premium resurgent, inflation be or evaluating that more will allocation we insurance valuable, and For this an see and strategy. is those

agriculture equities, of finite underappreciated all and as energy, as may sectors Our and resource includes and which most appreciation. mining. both which resources intrinsic under-owned drivers and are supply constraints, strategy with is serve These value well as metals price

comments market result, that system a To turmoil, ultimately likely emphasize the stabilize environment, new on fundamentally in that return for Jon's participate and begun. the recent believe cycle we macro sound, notwithstanding and preferred banking bonds will has the as the the is

commercial developed looming exceptions past over we've years about price property real financed believe As cycles. we price of at exceptions, cycle, maintain for. been appreciation estate office reflecting urban markets and the are it the some or XX% a and to owners several the and debt with crisis, XX% adequate over correction interest risk the even The rate recent with calling of most acquired properties equity, headlines to that, relates with debt the peaks past the

While are opportunities be private development to in ripen. and capital and investment markets light of appear size once properties flows and into of levels equity these dry REITs credit equity, current the private not expected needs they of the insignificant, for manageable powder

second to Equity real Institutional our initiative closing. Fund, estate our for private We had build continue Private a we

conversations our For are effective declared we SEC, with registration Income are Cohen distributors REIT, state the non-traded the through and Steers Opportunities by & nearly progressing. been REIT, have process

believe investment will opportunities. the estate attractive evaluate correction downturn real price commercial continue that We and present to the cyclical

especially patient disciplined deploying We capital. being therefore in are and

allocations and a private estate engagement client within listed between investors markets in have real financial we help weightings asset developed of portfolio. terms tools front, portfolios to the On optimize and

Change annual entitled was published Opportunity. Our Creates report recently

significant a in cyclical present and will and time economy of take to menu lead class will It asset regime change unfold. new trends is all in money The which and secular will the macro motion. to of valuations,

to We to manage our job for capitalize investments with opportunities prudent reporting shifts you cost you listening. prudently controls, on be and balancing clients. play the as progress. out, to Our for our to is forward prepared business look the on in Thank

Operator, please lines for questions. open the

[Operator John from Evercore line Dunn the question with Instructions] of first Your is ISI.

open. is line Your

flows Thank the drag we on start now. biggest with Maybe could you. off right

in maybe talked reset drive any can preferreds preferreds, and for to what's demand post-quarter talk You are but early performance about a demand for about shifts? we cycle? you where going Also, a

Jon can attraction to securities The add you've John, preferred response. start, appreciation, let maybe current had dislocation. times and some their Cheigh me for and at my is capital one Sure, particularly when like this primary of potential yields

little the preferreds system have something appears a it shifting And rates. asset declines, a the we've better. experienced of period situation better that banking even over what through more is yield. have now couple with the income But that has bit X% talked that now. and are for about the past out choices I stood So, stabilized now, allocations price yields And low are to there are how that fixed than years banking

Jon overall, articulated view certain with system on the our as And exceptions, is positive.

I it point. so if level the outflows will for resume banking the as neutral say continues So, preferreds. heal, would at the system flows And this and we're abated, at to I'd recent activity, relates expect ultimately that to have a

Great.

REITs channels? continue you out a think over to flow how 'XX, different I'm for allocation, a sales estate but demand play will the maybe So, do real secular by believer is

add into investors. takes to research out performed great recessions now, we to they've Jon types and put REITs of you as color in cycles. recession you how of a can said want throughout and history start to look with a conversations hold. credit lot so And at start tend average REITs some have that the that could we're because I'll But Well, different

And the come returns way of some by that. of best can

up to points our estate that capital debt the have points past on many they'll and that and in in the refinancing the markets, the financing, the providers sort estate of that come be take of real out Looking comments major and issues at REITs, any in thinking real as in they opportunities advantage challenges sector. turning about time of help ultimately been

side, on better been education say would the there on much just I So, use in REITs ever a has wealth portfolio. than how there's that to

light real between but of investors asset developing, and how private been allocate estate in REIT of estate and real non-traded listed. our portfolio, have particularly to developed much our in for allocate how that financial help have then have We a tools they them to between initiatives private should

advice in to financial points market. So, estate I how think navigate advisors real turning some in with a we're great the to help on commercial exciting pretty position

Institutionally, lot activity. of a there's

and not have in world active as estate of we're with listed estate comments, said who yet call lot manifested to get and sectors have convert with a around complement of in real official a the we coming strategies has lot I've institution wanting a it's to in an my enlisted exposures finals, like like strategies, using some a dynamics seeing up private strategy institutions portfolios, the in interesting can but As of that in we're like market. searches, completion to core they'd passive what but strategies, the there's those capital who invested in might you of you real lot to things

okay, presenting there's trading. an corrected, private that's capital whole price we've listed it's interest values are already this happening, (ph) in [illiquid] seen and is market, discovery the markets because the just work And just themselves. have more where that's recently market can't topic put also on nothing of, the We

with say, and have, to themselves institutions the the consultants been in but cycle where marginal asset this as this concept, interest I'd say, just just dollar more dynamic on not the but goes. the along laggards who is being whole So, I'd

to that. the next investors strong CRE of vast cetera, drop, John, market, I'd to an want limits vehicles that course we think class, exposure I estate definitely media, get but despite more guess some investors huge in the some to that majority of they faith are people limited into only so a with course real agree seeing and the I it. there's listed calibrate XXXX. But is, they continue of the also us We're have on you, are as seeing of to exposure thing from time there's the moving add the of and et trying get is existing definitely that, how asset private and amount over

buy people they'll to happy think years recognize, a hold very I be and today three now. five they on if from buy basis,

But, of course, early recessionary they that "bottom", to advice that's to no of one recovery want and times the is we them as transition these find periods, ever to really our kind normally from periods why perfectly. the bottom

are that's these there over milestones, a so certainly expect certain so, (ph), make to in] time. people will, And some you [leg but just point rather called, why the XXXX, bold to, one we'd of call if at in allocations than to try course

you. exposure And large, turns particularly CRE at the real if little healthcare, if does or top a Does estate sentiment writ some dinged your (ph), then, on get side? industrials, against estate your level, we're the what at everything look matter? fund Got [downer] version of guys maybe real you seeing datacenter, infrastructure, positioning

Look, there's short-term things always I think happen. that

So, index. and And think debt, talks CNBC office bad." says reiterate the certainly hundred everyone exposure That's are something that of understanding like something to we still be someone because a like it'll always or their people might why our REIT office say X.X%, try about educate times, and and And of what of REITs say, are. people then is X% I can that. X% REITs "Okay, to office, CRE to we

is opportunity, those overreactions so that's years. but I to really That don't misconceptions quarters So, are I think the that the look, opportunity. strong happen, and think they're going for these persist when

with the equity be than shorter-term Those reflexes worry an REITs about. durable to should like that X% trends investors reactions I and by These something versus market. tend underperformed create usually on, broader opportunity longer-term more SVB happened said,

the a that I'd been just in we by add have towers economics the property But there's of in the data as that, financing you are the centers, underlying know is much today sectors sectors as apartments, years XX and ever et connected core property cell with towers. cetera. businesses little diverse and case property today, just the all it's less that bit markets sector more industrial ago, the sectors cell office, probably range and that some to drive representation

actually tech it's in bit this we've names. next our some re-completion consistent well on year, more the what strategy, extremely a with little talked about performing equity or Jon So market performance generation REIT concentration strategy with from of

makes sense. Right,

Okay.

estate, We overseas haven't non-U.S. the that for and real the for on lot of dynamics a going are the kind what of menu? about what's part flows talked differences sourcing

a question. good that's Yes,

at point, So think or drivers, I guess somewhat was obviously economic the the when two Europe whether trajectory, it's called driven Asia, it's which you reopening. about big by, some so COVID

We are further Japan, behind like in that Kong, Singapore. and Hong China in places

economic places So are to that Asia. and opposed accelerating there are seeing as more growth Europe

are generally it attractive. a favored is behind. frankly, is Asia over more And say, generally we because Europe would I that valuations place So have at margin the and further the U.S.

But is balance the The good. generally the in it bit and which a reopening the Europe. Again, very very you would a places than are are from Europe that very, say perspective, a retail. both certainly have in from Asia, REIT the Asia like think most and balance healthy U.S. healthier at little U.S. the sheets say from we're part with seeing that sheets perspective a is balance sheet and in thing U.S. worse feel reopening dynamic, are the balance side. here we for But sheets other would I than margin, I I European positive, REIT

more about balance the on we good balance feel REIT sheets, bank very feel European we while so European sheets. cautious And

Again, at this the all is margin.

U.S., conversations fund almost to So talk about real I about sovereigns, allocation. institutions, when the having institutions, we They're estate. global occasionally are investors, global always would it's particularly primarily about large say, pension or a global but

sovereigns it's the dominant the or whether say So East conversation. Asia, I'd Europe, that's in Middle

we've about. we're things think those definitely talked I all the for So all seeing opportunities

And we're have have never They're it Valuations that to of is or years them educating less they're making new passively. capital still new well. public active improved. them investor can real private are on maybe gives to in and REITs REITs educating capital they've were one, REITs in a confidence making happens do those that how lot point way, place this ago. commitments they deploy, estate are to entities albeit we're learning invested they've secondly, in going cycle. this where still and always And only REITs going cases them three are the in some want down tell it a they A it something it number done more what on, deployments we than them, become at and be when

days like it's for of then things of talked little more rest the And a stuff about return maybe this demand Got happen then, timing is sounds but you and about potentially you're and that could a private seeing real happening, talk good the it year environment? you. over early just estate, the

we as are vehicle. vehicle both so the for as in raising the mode well capital the REIT Yes, institutional CNS

and we're capital we this not to terms prices for waiting deploying want. point. waiting that We're at returns the correct of for we're In shots to type the our get

going said, diligent. very patient, we're very as So I be, to

deployment, at And to in know topics, that tell can't be connected, investors of and to you're going to the half second point right? So, And it's sometime the that's some two doing. be, what you but I going when probably capital are this raising year. want

extent are who some there's what hands. But the the sometimes to understand investors in so we contact their doing. to And want in transaction investors really on activity sit we're with no market,

situations end for the to situation that whole get resolved will the the acquisition debt talked about. this of toward start Jon and I the think of year, as starts to open-up I sometime markets types

tuned. stay Well,

flavor little searches. talked a a more, that's advisory over fundings advisors get normal have conversations of can sliding pipeline, how we in in about the or maybe a do talk year, you been for regionally, already normal get think bit, and stuff do on give to slowdown you delayed? us you going positive? that So But get more and little some can the And you back channel the some overall

saw and one the the a if you slowdown see not followed if comments, pipeline, of lot our you in quarter. think you I bridge, in funding unfunded activity can my you there's a lot of that

It's a just down. changing. within just matter matter a not the slowed it's of that so demand interesting environment And things of have

as across that of and the things, dealing the for as with, in to activity, But it I volatility through period sets. are it. as of very the been conversations And real as And still the across active. assets, search lot the notwithstanding taking global. inflation the tried to opportunity think It's multi-strategy in and markets, convey well of taking it's asset a just process. the longer down. I've shifting my seen owners get prospects of just longer I is time. dealing in estate, results it as It's a number with And relates real with U.S. process it's So, both active that terms we're them infrastructure it's comments, it fact to and in that coming

maybe normally And on Right. Any a Japan, then in years. that for it cycle, multiple you part to just deposit check distribution we're year see? lasts of can into now the people concerns

behind little drivers time at wealth chasing The strongest like ways, a our the been It's investing predict. channel. lot type just strength to of difficult dollar, very inflow a points in going the be in that tech. back but can and there things channel, include the also of of is Japan faddish

helped a oriented tech go downturn to value and allocations. has So, that the more went back into fact income investors

say business, case to years. So interested in dynamic is managements the hard our is to there our vehicles. that's it couple promote other I every would very is, the Management as doing to interesting as those management subadvisory and very in say And predict. at Asset current things I'd of that change Japan, the Daiwa strategies and relates

me the that fact been of we that better to of but to slow reopening, terms would back but expect COVID Institutionally to now market get due been activity. closed to the optimistic. has because in as more country makes business to it's that normal tends that So, overall get

to Good hear.

out for think just maybe what on good window there end closed funds, of looks So year? for returns there's you rest new because money? the it open do probably like the the some Will

cost on financing. the financing there are think with strategies create your today, is positive a of you window future can that not the many one the for I spread of foreseeable and cost of for reasons the the is which closed debt

market asset closed very At to using are enhance the the can't So time, same the end of value yield discounts the leverage. there fund in are that you attractive.

to it So hard the are for those reopen. going to window things make

though will at those for, normal. settle a say that will that fund down quickly, if rate our out do could couple yields mean interest more once yields now meaning I the is outlook cycle pretty narrow things turns, a be are There change I can can but discounts close certain strategies levels. right of you

use close if going tougher And to be so, case, the and funds. down that's to it's leverage

think One more private estate real addition you one, estate lending in do real to your debt vehicles? guys about how

will managers about estate currently and if We and on we fact banks and that to spend don't capability a real as Well, our we stock, an complement in It's some pull that that REIT be company, that in debt a we're debt. certain it talking that asset built preferred the time capability well see one natural to going would are us. and there's real be in of for back would have And find invest view lenders based a as capability types it's regional we opportunity, a something of everything as some that. But estate. on could already. going

in 'XX? you. XX, then you think, Got thumbnail look we'll that maybe these And flows a and for what drove in positive people say just areas the do back were January

me show the your to to would to does has get articulated, create lot we it's It that it peak for in respond Well that stabilized. to both, be one be in would to REITs. question to better. that, that's continue securities. create system fact like markets if interest answer kind flows have Jon banking the that cycle of rate precise starts normalize, precondition But think environment that interest will say waiting and sidelines conditions will those in if a the I'd then the that the to that, on as of flows preferred

guys. much, very Thanks

Thanks, John.

turn time. at CEO, now no Mr. this further I questions are will There Harvey. the call the back Joe to over

great Great. to to time in quarter morning this day. we July we you forward and our a report your Well, you Have thank speaking as earnings. second for look

thank concludes and today's for This Ladies participating. call. you gentlemen, conference

disconnect. You now may