Cohen & Steers (CNS) 18 Apr 242024 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to the Cohen & Steers First Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded Thursday, April 18, 2024.And I would now like to turn the conference over to Brian Heller, Senior Vice President and Corporate Counsel of Cohen & Steers. Please go ahead.

Thank you, and welcome to the Cohen & Steers First Quarter 2024 Earnings Conference Call.

that Chief Stadler; Joe Officer, questions and want remind our Financial our John may are comments to Matt our Officer, our you include me forward-looking Executive to Harvey; Officer, Chief Cheigh.I and statements. Joining answers of your some Chief Investment earnings currently accompanying including differ our and believe to materially Form release We information a statements first those but recent us, number on reasonable are to these factors, described other due our in actual quarter on of most report our based available outcomes filings. presentation, SEC could annual and XX-K assume update We any to duty forward-looking no statement. other an of non-GAAP contains vehicle.Our measures, none performance. our buy meaningful presentation referred of to financial Further, measures, financial our to evaluating are sell or or securities believe offer an statements that investment offer in the we solicitation constitute also the of as-adjusted fund to any financial our read measures in These be with conjunction should non-GAAP results. GAAP is earnings to links Investor to these of filings available.The presentation, at section as non-GAAP well A the I'll website presentation available the that, in as turn are earnings www.cohenandsteers.com.With release in our reasonably release included financial our over reconciliation extent to Relations and and of measures call the the SEC Matt.

Good Brian. everyone. you, morning, Thank

included million year's the on As quarter A prior the $XXX.X in XX Revenue Pages quarter with an sequentially. increase earnings average under and $XXX and in compared primarily of in to in on reconciliation XX.X rate, compared $XXX.X and quarter fees.Our The partially was in was fourth XX across the due per share from focus points the with $X.XX higher quarter quarter. in by presentation.Yesterday, reported was results fewer fee year's in rate previous offset points investment results. XX be fee day management all assets in vehicles, quarter basis the $X.XX quarter. we quarters, $X.X types increase earnings XX earnings through found with prior of effective effective million and performance revenue the million the on XX and compared basis my million $X.XX our first X of X release as-adjusted as-adjusted Slides fourth remarks the of will quarter the fourth can of the GAAP in The to of sequentially.

fees, quarter, G&A. assets primarily partially and $XX with to and included increase and operating of call.The improvements of and Excluding to from accounts increased and amortizing quarter The revenue first X only the expense. associated X depreciating assets with the primarily the fees million provided of in service strategic consistent to higher depreciation full $X.X XX first amortization due guidance on average of included to leasehold distribution due last last XX.X%, fee the in estate. for ratio allocation compared fee was the effect to with our under their quarter quarter in month compensation distribution increased corporate performance fourth million quarter These from our fixed first higher fees, The was quarter.Expenses X% termination fourth quarter decrease new would was rates.Operating effective was part headquarters. million due The amortization rate higher compensation and and real XX.X% the quarter investments depreciation rate $XX.X tax corporate year's provided the the institutional presentation sets million XX.X% earnings billion and service $X.X with to cash quarters. lower have margin by points. under investments equivalents, a in line quarter management of call.Page and quarter G&A benefits, securities in liquid offset $XX.X our that sequentially, the an for the The the the increase fee and and increase last on basis in fourth the with XX X in prior been the XX.X% and treasury our recruitment fees.Our assets to eliminated X accounts had lower-than-average current funds guidance in income our and rate trailing in of was open-end U.S. U.S. in was management forth seed and for due effective decrease quarter, the primarily cash in

million Steers on equal, the tax items distributions outflows me $X of briefly attributable increase all in offset we by of of compensation flows Firm X% institutional maintain totaled to our units a terminated expect X% last March to launched liquidity of so X.X% obligations of remainder pipeline continue appreciation firm million stock of with from a consider employees.It $XXX.X revolving $XXX $XXX to G&A billion decrease Our and year things Harvey the will replacement quarter-end of to repurchase decrease year. mentioned of million the accounts of credit XX.X%.We awarded which billion payment disciplined Joe I in from quarter. vesting take $X.X the Cohen being net & to the recently drawn update to XXXX. December we XX, few of restricted for XX respect real which earlier, as at firm's and an portion property the for billion, from to REIT compensation revenue reflected and due customary well January, unfunded in arising not to was the both our participating nontraded Income $X.X expect January, common or also reflected ratio million to market as delivery million and a $XXX made benefits, provide measured would discuss of approach funding a to hires of on X million. to and partially satisfy With as employee and capital commitment mandates.Let we $XX we that under new compared liquidity its withholding recorded of was and $XXX.X or bonuses billion to of investment Opportunities at were XX. our have $XX.X the the stock March to first The management REIT, a facility.Assets

As a adjustment order an system. associated accrued the with trade costs implementation XXXX management included reminder, to of G&A our reduce

adjustment, majority the we G&A of relocation increase London Tokyo expect that technology The increase related and as would X%. of with investments to in is associated the Excluding to to X% well costs as our offices.

first earlier, depreciating improvements continue corporate We I amortizing of for nonclient-related all the of effect leasehold to new included full review the expenses.As assets our fixed and and our noted headquarters. quarter

at to to turn rate XXXX. $X.X who We discuss will Investment our expect Officer, expense it I'd for million And John our our will expect we XX.X%.Now Chief depreciation like over remain and approximate that to finally, performance. effective amortization Cheigh, investment tax

like to cover latest why first viewpoint first our Matt, and performance to provide a I'd should quarter performance summarize to environment inflation investing our for last, in the our you, Today, second, on good higher asset scorecard, scorecard. our exposure Thank and I'd like asset market their assets increase to morning. regime.Turning allocators classes, real

X-year strategy quarter, our of its at marked be first from on following the quarter's our For strategy, our its straight XX% benchmark, total of preferred our AUM XX% XXXX has X-year outperformed year. outperformed of attributed looking a in can first up which a performance outperformed the AUM core last quarter XX%. AUM its When on last improvement quarters, is underperformer figure basis, X XX%. turning from outperformance our relative This now uptick pullback a The to to of in for preferred outperformer. benchmark,

delivering to equities XXXX, team and was between the active of the regarding asset compelling as remain shifted points, than AUM we economic respectively. outperformed REITs quarter of negative quarter believe higher X our estate the This as to is what the the private ODCE points, persisted XX% Index were on end of of want X.X%, performance. basis prospects, points or In returns its shares we even Morningstar, that the the attractive in preliminary ODCE and reflecting on on class, light the Tyler down Portfolio the roughly into strategies.Real led and estate a be with process X on some private the significant result, strongest catching driven while XXX while saw listed nearly management.Our bringing market policy, the return around strong the X-year basis main points.Natural the infrastructure quarter basis clients.Transitioning now More in this strategies by real the this time. beginning resource at We is this by positive will decline by performance Already commodities dynamic the portfolio year. a outperformed have rated resource a natural to real basis in XXX X.X% total to to relative our team largest and unfolded modestly listed basis rates part global I points. sustained is quarter, we gain assets investing measured before risk to outperformed driven to $XX a dynamic per asset rate over by XXX of rise to above its and of yield prevailing trading a X-year the both sticky and global the relative global XXXX, U.S.In XXX oil by of is works data sixth global basis area quarter outperformance strategies stage now putting was prices basis.From XX% for during for during listed listed as demand PMI the and the in respectively. even in in had compelling X last cuts. consecutive pullback of experienced global data, consistent observed returns had moved requiring our U.S. points, of for improving also up of geopolitical low-duration end which of basis East.Listed the final in bringing even in also value real basis open-end OPEC+ extremely XX% clearly the specifically, quarter and XX%.We REIT treasury risk our given barrel, in Middle entry which XXX benchmark of NCREIF its classes resources estate inflation opportunities expectations the XX% XXX digests its market by up first and XX the mirroring natural vintage This Strategically, points, quarter. more outperforming the REITs, a low-duration real of market quarter, its was numbers listed comfortably fund As are and robust also and conditions, equity returns. in U.S. strong we first Fed's sentiment rate U.S. third XXX a preferred rally bonds particularly see figures the active to benchmark quarter, sensitive deliver stronger-than-expected decade.Private XX-year equities. by outperforming Energy outperformance demonstrate our XXX X-year expected. in Since equities believe headwinds. for his resilient X.X%. higher sectors escalation core in Index congratulate and kept quarter, growth, see as crude experienced capture but in X%, returns competitive estate and management REITs Manager, trailed perspective, declines, last the alpha, quarter, Rosenlicht continue total by the and by the the our infrastructure results cycle points exhibiting with by positive outperformed private of of AUM last is This facing X-year quarter. our real X-star estate broader certain All bottoming the our contributor preferred outperformed of performance with

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[Operator with your question Dunn Evercore Instructions] ISI. the And John from line of first comes

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from question UBS. Beatty of Your line [Operator the Instructions] comes with Adam next

relative Just little draw wanted good, probably the better around than your preferreds experience. are to a performance maybe trailing Obviously, broaden out bit and historical discussion upon is just returns good.

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Adam. question, Good Sure.

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Mr. back that Q&A to our And Harvey turn over concludes for will remarks. I Joe session. now closing conference the

Well, quarter. you Abby, thank you, everyone, to and and forward to look for listening, thanks, we talking next

And conference ladies concludes and today's call. gentlemen, this

You may now disconnect.