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Cohen & Steers Reports Fourth Quarter 2016 Diluted EPS Of $0.56, Or $0.48 As Adjusted; Full Year 2016 Diluted EPS Of $2.00, Or $1.85 As Adjusted

CNS

-- AUM of $57.2 billion, an increase of 8.8% from December 31, 2015 and a decrease of 5.5% from September 30, 2016

-- Net inflows of $707 million for the fourth quarter 2016; net inflows of $6.7 billion for the full year 2016

-- Annualized organic growth rate of 4.7% for the fourth quarter 2016; organic growth rate of 12.7% for the full year 2016

-- Operating margin of 40.1% for the fourth quarter 2016; operating margin of 38.7% for the full year 2016

PR Newswire

NEW YORK, Jan. 18, 2017 /PRNewswire/ -- Cohen & Steers, Inc. (NYSE: CNS) reported earnings of $0.56 per diluted share for the quarter ended December 31, 2016, compared with $0.27 per diluted share for the quarter ended December 31, 2015 and $0.51 per diluted share for the quarter ended September 30, 2016. Adjusted earnings per diluted share were $0.48 for the quarter ended December 31, 2016, compared with $0.41 per diluted share for the quarter ended December 31, 2015 and $0.51 per diluted share for the quarter ended September 30, 2016.

For the year ended December 31, 2016, the company reported earnings of $2.00 per diluted share, compared with $1.41 per diluted share for the year ended December 31, 2015. Adjusted earnings per diluted share were $1.85 for the year ended December 31, 2016, compared with $1.71 per diluted share for the year ended December 31, 2015.

 

Financial Highlights (Unaudited)


For the Periods


(in thousands, except per share data)

 Three Months Ended


Years Ended


December 31,
2016


September 30,
2016


December 31,
2015 (1)


December 31,
2016


December 31,
2015

U.S. GAAP










Revenue

$

89,434



$

94,388



$

81,671



$

349,876



$

328,655


Expenses

$

53,574



$

57,175



$

51,319



$

214,365



$

201,106


Operating income

$

35,860



$

37,213



$

30,352



$

135,511



$

127,549


Operating margin

40.1

%


39.4

%


37.2

%


38.7

%


38.8

%

Non-operating income (loss)

$

1,427



$

1,356



$

(5,572)



$

7,892



$

(14,805)


Net income attributable to common stockholders

$

26,168



$

23,877



$

12,385



$

92,936



$

64,551


Diluted earnings per share

$

0.56



$

0.51



$

0.27



$

2.00



$

1.41












As Adjusted (2)










Net income attributable to common stockholders

$

22,373



$

23,626



$

18,878



$

86,109



$

78,694


Diluted earnings per share

$

0.48



$

0.51



$

0.41



$

1.85



$

1.71


_______________________

(1)

During the three months ended December 31, 2015, one of the company's seed investments changed classification from available-for-sale to equity method. As a result, all prior periods have been retroactively adjusted to reflect this investment as if it had been an equity method investment in prior periods.

(2)

The as adjusted financial measures represent non-GAAP financial measures. Please refer to the "Non-GAAP Reconciliations" of this release for a reconciliation to the most directly comparable U.S. GAAP financial measures.

 

U.S. GAAP

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

Revenue

Revenue for the fourth quarter of 2016 was $89.4 million, a decrease of $5.0 million from $94.4 million for the third quarter of 2016. Lower average assets under management in the fourth quarter of 2016 resulted in the following changes in investment advisory and administration fees:

  • Institutional account revenue decreased $1.9 million to $23.3 million;
  • Open-end fund revenue decreased $1.7 million to $39.1 million; and
  • Closed-end fund revenue decreased $1.1 million to $19.1 million.

Revenue for the year ended December 31, 2016 was $349.9 million, an increase of $21.2 million from $328.7 million for the year ended December 31, 2015.

Expenses

Expenses for the fourth quarter of 2016 were $53.6 million, a decrease of $3.6 million from $57.2 million for the third quarter of 2016. The change was primarily due to:

  • Lower employee compensation and benefits of $2.6 million, primarily attributable to lower incentive and production compensation; and
  • Decreased distribution and service fees of $1.1 million, primarily due to lower average assets under management in U.S. no-load open-end funds.

Expenses for the year ended December 31, 2016 were $214.4 million, an increase of $13.3 million from $201.1 million for the year ended December 31, 2015.

Operating Margin

Operating margin was 40.1% for the fourth quarter of 2016 compared with 39.4% for the third quarter of 2016. Operating margin was 38.7% for the year ended December 31, 2016 compared with 38.8% for the year ended December 31, 2015.

Non-operating Income

Non-operating income was $1.4 million for both the fourth and third quarters of 2016.

Non-operating income for the year ended December 31, 2016 was $7.9 million, compared with non-operating loss of $14.8 million for the year ended December 31, 2015, which included an unrealized non-operating loss of $8.2 million on a seed investment that, due to third-party shareholder redemptions, was reclassified from available-for-sale investments to equity method investments. In addition, non-operating loss for the year ended December 31, 2015 included a $2.8 million other-than-temporary impairment.

Income Taxes

The effective tax rate for the fourth quarter of 2016 was 29.8% compared with 38.2% for the third quarter of 2016. The decrease was primarily attributable to gains on the company's seed investments, which would not be taxable due to capital loss carryforwards, as well as discrete items.

The effective tax rate for the year ended December 31, 2016 was 35.3%, compared with 42.9% for the year ended December 31, 2015, which included the recordation of a valuation allowance on the tax benefit associated with losses on the company's seed investments.

As Adjusted

The term "as adjusted" is used to identify non-GAAP financial information in the discussion below and excludes the financial results associated with the company's seed investments, the effect of the accelerated vesting of certain restricted stock units in the first quarter of 2016 and the tax effect on these items. Please refer to the "Non-GAAP Reconciliations" of this release for a reconciliation to the most directly comparable U.S. GAAP financial measures.

Non-Operating Income

Non-operating income, as adjusted, for the quarter ended December 31, 2016 was $587,000, compared with $394,000 for the quarter ended September 30, 2016. The change was primarily due to net gains associated with forward contracts used to hedge certain non-U.S. dollar advisory fee receivables and interest earned on corporate cash.

Non-operating income, as adjusted, for the year ended December 31, 2016 was $1.2 million, compared with non-operating loss, as adjusted, of $772,000 for the year ended December 31, 2015. The change was primarily due to net gains associated with forward contracts used to hedge certain non-U.S. dollar advisory fee receivables and interest earned on corporate cash.

Operating Margin

Operating margin, as adjusted, was 40.1% for the fourth quarter of 2016 compared with 39.5% for the third quarter of 2016. Operating margin, as adjusted, was 39.3% for the year ended December 31, 2016 compared with 38.8% for the year ended December 31, 2015.

 

Assets Under Management Highlights (Unaudited)


December 31, 2016 Compared with September 30, 2016











(in millions)

Assets Under Management




As of



By Investment Vehicle

December 31,
2016


September 30,
2016


% Change


    Institutional accounts

$

28,659



$

29,948



(4.3%)


    Open-end funds

19,576



21,165



(7.5%)


    Closed-end funds

8,963



9,384



(4.5%)


Total

$

57,198



$

60,497



(5.5%)








By Investment Strategy






    U.S. real estate

$

28,927



$

31,248



(7.4%)


    Preferred securities

9,880



10,440



(5.4%)


    Global/international real estate

9,403



10,056



(6.5%)


    Global listed infrastructure

5,697



5,862



(2.8%)


    Other

3,291



2,891



13.8%


Total

$

57,198



$

60,497



(5.5%)


 

Assets under management were $57.2 billion as of December 31, 2016, a decrease of $3.3 billion from $60.5 billion at September 30, 2016. The decrease from September 30, 2016 was attributable to market depreciation of $2.1 billion and distributions of $1.9 billion, partially offset by net inflows of $707 million.

Institutional Accounts

Assets under management in institutional accounts were $28.7 billion as of December 31, 2016, a decrease of 4.3% from $29.9 billion at September 30, 2016. The change from September 30, 2016 was due to the following:

  • Net inflows of $109 million from Japan subadvised accounts, primarily comprised of $139 million into U.S. real estate, partially offset by net outflows of $48 million from global/international real estate;
  • Distributions from Japan subadvised accounts of $800 million, primarily comprised of $757 million out of U.S. real estate;
  • Net inflows of $40 million from subadvised accounts excluding Japan, primarily comprised of $167 million into global/international real estate, partially offset by net outflows of $84 million from U.S. real estate and $49 million from commodities (included in "Other" in the table above);
  • Net inflows of $506 million from advised accounts, primarily comprised of $424 million into multi-strategy real assets (included in "Other" in the table above), and $145 million into global listed infrastructure, partially offset by net outflows of $48 million from global/international real estate; and
  • Market depreciation of $1.1 billion, including $570 million from U.S. real estate and $471 million from global/international real estate.

Open-end Funds

Assets under management for open-end funds were $19.6 billion as of December 31, 2016, a decrease of 7.5% from $21.2 billion at September 30, 2016. The change from September 30, 2016 was due to the following:

  • Net inflows of $54 million, including $283 million into U.S. real estate, partially offset by net outflows of $244 million from preferred securities;
  • Market depreciation of $708 million, including $422 million from U.S. real estate, $169 million from preferred securities and $121 million from global/international real estate; and
  • Distributions of $935 million, including $754 million out of U.S. real estate and $90 million out of preferred securities.

Closed-end Funds

Assets under management for closed-end funds were $9.0 billion as of December 31, 2016, a decrease of 4.5% from $9.4 billion at September 30, 2016. The decrease from September 30, 2016 was due to market depreciation of $254 million and distributions of $165 million.

 


Investment Performance as of December 31, 2016









% of Total AUM in Outperforming Strategies (1)


December 31,
2014

December 31,
2015

December 31,
2016

1-Year

95%

88%

44%

3-Year

76%

100%

96%

5-Year

60%

76%

76%

10-Year

61%

100%

95%







          % of U.S. Open-End Fund AUM by Morningstar Rating (2), as of December 31, 2016          


Not Rated

1%

1 or 2 Star

*

or

**

4%


3 Star

***

7%

4 or 5 Star

****

or

*****

88%



(1)

Past performance of investment strategies is no guarantee of future results. Outperformance determined by annualized investment performance of all accounts in each investment strategy measured gross of fees and net of withholding taxes in comparison to performance of each account's reference benchmark measured net of withholding taxes, where applicable. This is not investment advice and may not be construed as sales or marketing material for any financial product or service sponsored or provided by Cohen & Steers.

(2)

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 overall period as of December 31, 2016. 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. See Additional Disclosures at the end of this release for more information.

 

 

Balance Sheet Information

As of December 31, 2016, cash, cash equivalents and seed investments were $239 million. As of December 31, 2016, stockholders' equity was $266 million and the company had no debt.

Conference Call Information

Cohen & Steers will host a conference call tomorrow, January 19, 2017 at 10:00 a.m. (ET) to discuss the company's fourth quarter and full year 2016 financial results. Investors and analysts can access the live conference call by dialing 888-228-0562 (U.S.) or +1-303-223-4374 (international); passcode: 21841605. Participants should plan to register at least 10 minutes before the conference call begins. The presentation that will be reviewed as part of the conference call is available on the company's website at www.cohenandsteers.com under "Company - Press Releases."

A replay of the call will be available for two weeks starting at approximately 12:00 p.m. (ET) on January 19, 2017 and can be accessed at 800-633-8284 (U.S.) or +1-402-977-9140 (international); passcode: 21841605. 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." The webcast will be archived on the website for one month.

About Cohen & Steers

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

Forward-Looking Statements

This press release and other statements that Cohen & Steers may make may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect the company's current views with respect to, among other things, the company's operations and financial performance. You can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates" or the negative versions of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these forward-looking statements. The company believes that these factors include, but are not limited to, the risks described in the Risk Factors section of the company's Annual Report on Form 10-K for the year ended December 31, 2015 (the Form 10-K), which is accessible on the Securities and Exchange Commission's website at www.sec.gov and on the company's website at www.cohenandsteers.com. These factors are not exhaustive and should be read in conjunction with the other cautionary statements that are included in the company's Form 10-K and other filings with the Securities and Exchange Commission. The company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

 

 

 Cohen & Steers, Inc. and Subsidiaries










 Condensed Consolidated Statements of Operations (Unaudited)







 For the Periods










 (in thousands, except per share data)





















 Three Months Ended


 % Change From


December 31,
2016


September 30,
2016


December 31,
2015 (1)


September 30,
2016


December 31,
2015

 Revenue










 Investment advisory and administration fees

$

81,410



$

86,079



$

75,269






 Distribution and service fees

5,196



5,296



4,120






 Portfolio consulting and other

2,828



3,013



2,282






   Total revenue

89,434



94,388



81,671



(5.2%)



9.5%


 Expenses










 Employee compensation and benefits

28,329



30,951



27,440






 Distribution and service fees

10,023



11,092



8,976






 General and administrative

13,206



13,128



13,390






 Depreciation and amortization

2,016



2,004



1,513






   Total expenses

53,574



57,175



51,319



(6.3%)



4.4%


 Operating income

35,860



37,213



30,352



(3.6%)



18.1%


 Non-operating income










 Interest and dividend income—net

652



367



560






 Gain (loss) from seed investments—net

290



698



(6,081)






 Other income (losses)

485



291



(51)






   Total non-operating income (loss)

1,427



1,356



(5,572)



*


*

 Income before provision for income taxes

37,287



38,569



24,780



(3.3%)



50.5%


 Provision for income taxes

11,096



14,738



12,446






 Net income

26,191



23,831



12,334



9.9%



112.3%


    Less: Net (income) loss attributable to 
    redeemable noncontrolling interest

(23)



46



51






 Net income attributable to common stockholders

$

26,168



$

23,877



$

12,385



9.6%



111.3%












 Earnings per share attributable to common 
  stockholders










 Basic

$

0.57



$

0.52



$

0.27



9.6%



109.1%


 Diluted

$

0.56



$

0.51



$

0.27



9.4%



108.4%












 Dividends declared per share










 Quarterly

$

0.26



$

0.26



$

0.25



—%



4.0%


 Special

$

0.50



$



$

0.50



*


—%












 Weighted average shares outstanding










 Basic

46,010



45,999



45,524






 Diluted

46,609



46,544



45,969







*

Not meaningful

(1)

During the three months ended December 31, 2015, one of the company's seed investments changed classification from available-for-sale to equity method. As a result, all prior periods have been retroactively adjusted to reflect this investment as if it had been an equity method investment in prior periods.

 

 

 


 

 Cohen & Steers, Inc. and Subsidiaries






 Condensed Consolidated Statements of Operations (Unaudited)




 For the Periods






 (in thousands, except per share data)













Years Ended




December 31,
2016


December 31,
2015


 % Change

 Revenue






 Investment advisory and administration fees

$

319,667



$

303,729




 Distribution and service fees

19,396



16,001




 Portfolio consulting and other

10,813



8,925




   Total revenue

349,876



328,655



6.5%


 Expenses






 Employee compensation and benefits

115,607



107,710




 Distribution and service fees

39,590



36,330




 General and administrative

51,558



50,853




 Depreciation and amortization

7,610



6,213




   Total expenses

214,365



201,106



6.6%


 Operating income

135,511



127,549



6.2%


 Non-operating income






 Interest and dividend income—net

2,119



1,600




 Gain (loss) from seed investments—net

4,993



(15,402)




 Other income (losses)

780



(1,003)




   Total non-operating income (loss)

7,892



(14,805)



*

 Income before provision for income taxes

143,403



112,744



27.2%


 Provision for income taxes

50,593



48,407




 Net income

92,810



64,337



44.3%


    Less: Net loss attributable to 
    redeemable noncontrolling interest

126



214




 Net income attributable to common stockholders

$

92,936



$

64,551



44.0%








 Earnings per share attributable to common
  stockholders






 Basic

$

2.02



$

1.42



42.3%


 Diluted

$

2.00



$

1.41



42.3%








 Dividends declared per share






 Quarterly

$

1.04



$

1.00



4.0%


 Special

$

0.50



$

0.50



—%








 Weighted average shares outstanding






 Basic

45,951



45,433




 Diluted

46,432



45,897





*       Not meaningful

 

 

 


Cohen & Steers, Inc. and Subsidiaries










Assets Under Management (Unaudited)










By Investment Vehicle










For the Periods










(in millions)











Three Months Ended


 % Change From


December 31,
2016


September 30,
2016


December 31,
2015 (1)


September 30,
2016


December 31,
2015

Institutional Accounts










Assets under management, beginning of period

$

29,948



$

29,581



$

24,645






    Inflows

1,364



1,612



1,023






    Outflows

(709)



(636)



(475)






    Net inflows

655



976



548






    Market (depreciation) appreciation

(1,144)



219



1,495






    Distributions

(800)



(828)



(583)






    Total (decrease) increase

(1,289)



367



1,460






Assets under management, end of period

$

28,659



$

29,948



$

26,105



(4.3%)



9.8%


Percentage of total assets under management

50.1

%


49.5

%


49.6

%





Average assets under management for period

$

28,343



$

30,138



$

25,655



(6.0%)



10.5%












Open-end Funds










Assets under management, beginning of period

$

21,165



$

19,777



$

16,141






    Inflows

2,623



2,592



2,263






    Outflows

(2,569)



(1,322)



(1,319)






    Net inflows

54



1,270



944






    Market (depreciation) appreciation

(708)



275



871






    Distributions

(935)



(157)



(496)






    Total (decrease) increase

(1,589)



1,388



1,319






Assets under management, end of period

$

19,576



$

21,165



$

17,460



(7.5%)



12.1%


Percentage of total assets under management

34.2

%


35.0

%


33.2

%





Average assets under management for period

$

20,025



$

20,863



$

17,114



(4.0%)



17.0%












Closed-end Funds










Assets under management, beginning of period

$

9,384



$

9,391



$

8,958






    Inflows










    Outflows

(2)





(34)






    Net outflows

(2)





(34)






    Market (depreciation) appreciation

(254)



115



237






    Distributions

(165)



(122)



(132)






    Total (decrease) increase

(421)



(7)



71






Assets under management, end of period

$

8,963



$

9,384



$

9,029



(4.5%)



(0.7%)


Percentage of total assets under management

15.7

%


15.5

%


17.2

%





Average assets under management for period

$

9,011



$

9,516



$

9,198



(5.3%)



(2.0%)












Total










Assets under management, beginning of period

$

60,497



$

58,749



$

49,744






    Inflows

3,987



4,204



3,286






    Outflows

(3,280)



(1,958)



(1,828)






    Net inflows

707



2,246



1,458






    Market (depreciation) appreciation

(2,106)



609



2,603






    Distributions

(1,900)



(1,107)



(1,211)






    Total (decrease) increase

(3,299)



1,748



2,850






Assets under management, end of period

$

57,198



$

60,497



$

52,594



(5.5%)



8.8%


Average assets under management for period

$

57,379



$

60,517



$

51,967



(5.2%)



10.4%




(1)

December 31, 2015 amounts have been reclassified to show distributions separately and dividend reinvestments as inflows.

 

 

 


Cohen & Steers, Inc. and Subsidiaries






Assets Under Management (Unaudited)






By Investment Vehicle






For the Periods






(in millions)







Years Ended




December 31,
2016


December 31,
2015 (1)


 % Change

Institutional Accounts






Assets under management, beginning of period

$

26,105



$

26,201




    Inflows

6,374



3,646




    Outflows

(2,414)



(2,379)




    Net inflows

3,960



1,267




    Market appreciation

1,627



863




    Distributions

(3,033)



(2,226)




    Total increase (decrease)

2,554



(96)




Assets under management, end of period

$

28,659



$

26,105



9.8%


Percentage of total assets under management

50.1

%


49.6

%



Average assets under management for period

$

28,085



$

25,884



8.5%








Open-end Funds






Assets under management, beginning of period

$

17,460



$

17,131




    Inflows

9,630



7,344




    Outflows

(6,831)



(5,901)




    Net inflows

2,799



1,443




    Market appreciation

917



560




    Distributions

(1,600)



(1,674)




    Total increase

2,116



329




Assets under management, end of period

$

19,576



$

17,460



12.1%


Percentage of total assets under management

34.2

%


33.2

%



Average assets under management for period

$

19,176



$

17,252



11.2%








Closed-end Funds






Assets under management, beginning of period

$

9,029



$

9,805




    Inflows






    Outflows

(88)



(53)




    Net outflows

(88)



(53)




    Market appreciation (depreciation)

554



(206)




    Distributions

(532)



(517)




    Total decrease

(66)



(776)




Assets under management, end of period

$

8,963



$

9,029



(0.7%)


Percentage of total assets under management

15.7

%


17.2

%



Average assets under management for period

$

9,108



$

9,586



(5.0%)








Total






Assets under management, beginning of period

$

52,594



$

53,137




    Inflows

16,004



10,990




    Outflows

(9,333)



(8,333)




    Net inflows

6,671



2,657




    Market appreciation

3,098



1,217




    Distributions

(5,165)



(4,417)




    Total increase (decrease)

4,604



(543)




Assets under management, end of period

$

57,198



$

52,594



8.8%


Average assets under management for period

$

56,369



$

52,722



6.9%




(1)

December 31, 2015 amounts have been reclassified to show distributions separately and dividend reinvestments as inflows.

 

 


 

Cohen & Steers, Inc. and Subsidiaries










Assets Under Management - Institutional Accounts (Unaudited)







By Account Type










For the Periods










(in millions)











Three Months Ended


 % Change From


December 31,
2016


September 30,
2016


December 31,
2015 (1)


September 30,
2016


December 31,
2015

Japan Subadvisory










Assets under management, beginning of period

$

14,944



$

14,852



$

12,234






    Inflows

447



1,084



625






    Outflows

(338)



(96)



(92)






    Net inflows

109



988



533






    Market (depreciation) appreciation

(554)



(68)



928






    Distributions

(800)



(828)



(583)






    Total (decrease) increase

(1,245)



92



878






Assets under management, end of period

$

13,699



$

14,944



$

13,112



(8.3%)



4.5%


Percentage of institutional assets under management

47.8

%


49.9

%


50.2

%





Average assets under management for period

$

13,807



$

15,025



$

12,726



(8.1%)



8.5%












Subadvisory Excluding Japan










Assets under management, beginning of period

$

6,048



$

5,782



$

5,266






    Inflows

321



374



216






    Outflows

(281)



(223)



(261)






    Net inflows (outflows)

40



151



(45)






    Market (depreciation) appreciation

(196)



115



207






    Total (decrease) increase

(156)



266



162






Assets under management, end of period

$

5,892



$

6,048



$

5,428



(2.6%)



8.5%


Percentage of institutional assets under management

20.6

%


20.2

%


20.8

%





Average assets under management for period

$

5,790



$

5,979



$

5,454



(3.2%)



6.2%












Advisory










Assets under management, beginning of period

$

8,956



$

8,947



$

7,145






    Inflows

596



154



182






    Outflows

(90)



(317)



(122)






    Net inflows (outflows)

506



(163)



60






    Market (depreciation) appreciation

(394)



172



360






    Total increase

112



9



420






Assets under management, end of period

$

9,068



$

8,956



$

7,565



1.3%



19.9%


Percentage of institutional assets under management

31.6

%


29.9

%


29.0

%





Average assets under management for period

$

8,746



$

9,134



$

7,475



(4.2%)



17.0%












Total Institutional Accounts










Assets under management, beginning of period

$

29,948



$

29,581



$

24,645






    Inflows

1,364



1,612



1,023






    Outflows

(709)



(636)



(475)






    Net inflows

655



976



548






    Market (depreciation) appreciation

(1,144)



219



1,495






    Distributions

(800)



(828)



(583)






    Total (decrease) increase

(1,289)



367



1,460






Assets under management, end of period

$

28,659



$

29,948



$

26,105



(4.3%)



9.8%


Average assets under management for period

$

28,343



$

30,138



$

25,655



(6.0%)



10.5%




(1)

December 31, 2015 amounts have been reclassified to show distributions separately.

 

 


 


Cohen & Steers, Inc. and Subsidiaries






Assets Under Management - Institutional Accounts (Unaudited)



By Account Type






For the Periods






(in millions)







Years Ended




December 31,
2016


December 31,
2015 (1)


 % Change

Japan Subadvisory






Assets under management, beginning of period

$

13,112



$

13,377




    Inflows

3,305



1,859




    Outflows

(503)



(607)




    Net inflows

2,802



1,252




    Market appreciation

818



709




    Distributions

(3,033)



(2,226)




    Total increase (decrease)

587



(265)




Assets under management, end of period

$

13,699



$

13,112



4.5%


Percentage of institutional assets under management

47.8

%


50.2

%



Average assets under management for period

$

13,607



$

12,973



4.9%








Subadvisory Excluding Japan






Assets under management, beginning of period

$

5,428



$

5,480




    Inflows

1,030



1,034




    Outflows

(919)



(1,013)




    Net inflows

111



21




    Market appreciation (depreciation)

353



(73)




    Total increase (decrease)

464



(52)




Assets under management, end of period

$

5,892



$

5,428



8.5%


Percentage of institutional assets under management

20.6

%


20.8

%



Average assets under management for period

$

5,961



$

5,537



7.7%








Advisory






Assets under management, beginning of period

$

7,565



$

7,344




    Inflows

2,039



753




    Outflows

(992)



(759)




    Net inflows (outflows)

1,047



(6)




    Market appreciation

456



227




    Total increase

1,503



221




Assets under management, end of period

$

9,068



$

7,565



19.9%


Percentage of institutional assets under management

31.6

%


29.0

%



Average assets under management for period

$

8,517



$

7,374



15.5%








Total Institutional Accounts






Assets under management, beginning of period

$

26,105



$

26,201




    Inflows

6,374



3,646




    Outflows

(2,414)



(2,379)




    Net inflows

3,960



1,267




    Market appreciation

1,627



863




    Distributions

(3,033)



(2,226)




    Total increase (decrease)

2,554



(96)




Assets under management, end of period

$

28,659



$

26,105



9.8%


Average assets under management for period

$

28,085



$

25,884



8.5%




(1)

December 31, 2015 amounts have been reclassified to show distributions separately.

 

 

Cohen & Steers, Inc. and Subsidiaries










Assets Under Management (Unaudited)










By Investment Strategy










For the Periods










(in millions)











Three Months Ended


 % Change From


December 31,
2016


September 30,
2016


December 31,
2015 (1)


September 30,
2016


December 31,
2015

U.S. Real Estate










Assets under management, beginning of period

$

31,248



$

30,981



$

25,812






    Inflows

1,891



2,141



1,679






    Outflows

(1,565)



(722)



(673)






    Net inflows

326



1,419



1,006






    Market (depreciation) appreciation

(1,095)



(135)



1,976






    Distributions

(1,552)



(890)



(980)






    Other (2)



(127)








    Total (decrease) increase

(2,321)



267



2,002






Assets under management, end of period

$

28,927



$

31,248



$

27,814



(7.4%)



4.0%


Percentage of total assets under management

50.6

%


51.7

%


52.9

%





Average assets under management for period

$

29,063



$

31,552



$

27,195



(7.9%)



6.9%












Preferred Securities










Assets under management, beginning of period

$

10,440



$

9,082



$

6,877






    Inflows

954



1,611



1,145






    Outflows

(1,145)



(435)



(427)






    Net (outflows) inflows

(191)



1,176



718






    Market (depreciation) appreciation

(245)



297



209






    Distributions

(124)



(115)



(99)






    Total (decrease) increase

(560)



1,358



828






Assets under management, end of period

$

9,880



$

10,440



$

7,705



(5.4%)



28.2%


Percentage of total assets under management

17.3

%


17.3

%


14.6

%





Average assets under management for period

$

10,253



$

9,937



$

7,343



3.2%



39.6%












Global/International Real Estate










Assets under management, beginning of period

$

10,056



$

9,984



$

9,379






    Inflows

403



231



155






    Outflows

(355)



(554)



(449)






    Net inflows (outflows)

48



(323)



(294)






    Market (depreciation) appreciation

(590)



314



448






    Distributions

(111)



(46)



(57)






    Other (2)



127








    Total (decrease) increase

(653)



72



97






Assets under management, end of period

$

9,403



$

10,056



$

9,476



(6.5%)



(0.8%)


Percentage of total assets under management

16.4

%


16.6

%


18.0

%





Average assets under management for period

$

9,332



$

10,256



$

9,605



(9.0%)



(2.8%)












Global Listed Infrastructure










Assets under management, beginning of period

$

5,862



$

5,760



$

5,212






    Inflows

255



141



201






    Outflows

(98)



(77)



(136)






    Net inflows

157



64



65






    Market (depreciation) appreciation

(242)



80



(75)






    Distributions

(80)



(42)



(55)






    Total (decrease) increase

(165)



102



(65)






Assets under management, end of period

$

5,697



$

5,862



$

5,147



(2.8%)



10.7%


Percentage of total assets under management

10.0

%


9.7

%


9.8

%





Average assets under management for period

$

5,606



$

5,854



$

5,324



(4.2%)



5.3%












Other










Assets under management, beginning of period

$

2,891



$

2,942



$

2,464






    Inflows

484



80



106






    Outflows

(117)



(170)



(143)






    Net inflows (outflows)

367



(90)



(37)






    Market appreciation

66



53



45






    Distributions

(33)



(14)



(20)






    Total increase (decrease)

400



(51)



(12)






Assets under management, end of period

$

3,291



$

2,891



$

2,452



13.8%



34.2%


Percentage of total assets under management

5.8

%


4.8

%


4.7

%





Average assets under management for period

$

3,125



$

2,918



$

2,500



7.1%



25.0%












Total










Assets under management, beginning of period

$

60,497



$

58,749



$

49,744






    Inflows

3,987



4,204



3,286






    Outflows

(3,280)



(1,958)



(1,828)






    Net inflows

707



2,246



1,458






    Market (depreciation) appreciation

(2,106)



609



2,603






    Distributions

(1,900)



(1,107)



(1,211)






    Other (2)










    Total (decrease) increase

(3,299)



1,748



2,850






Assets under management, end of period

$

57,198



$

60,497



$

52,594



(5.5%)



8.8%


Average assets under management for period

$

57,379



$

60,517



$

51,967



(5.2%)



10.4%




(1)

December 31, 2015 amounts have been reclassified to show distributions separately and dividend reinvestments as inflows.

(2)

Represents transfer of assets under management not related to subscriptions, redemptions, market appreciation (depreciation) or distributions.

 

 

Cohen & Steers, Inc. and Subsidiaries






Assets Under Management (Unaudited)






By Investment Strategy






For the Periods






(in millions)







Years Ended




December 31,
2016


December 31,
2015 (1)


 % Change

U.S. Real Estate






Assets under management, beginning of period

$

27,814



$

28,357




    Inflows

7,821



5,410




    Outflows

(4,091)



(3,729)




    Net inflows

3,730



1,681




    Market appreciation

1,674



1,358




    Distributions

(4,164)



(3,582)




    Other (2)

(127)






    Total increase (decrease)

1,113



(543)




Assets under management, end of period

$

28,927



$

27,814



4.0%


Percentage of total assets under management

50.6

%


52.9

%



Average assets under management for period

$

29,224



$

27,663



5.6%








Preferred Securities






Assets under management, beginning of period

$

7,705



$

6,342




    Inflows

4,857



3,048




    Outflows

(2,592)



(1,702)




    Net inflows

2,265



1,346




    Market appreciation

365



371




    Distributions

(455)



(354)




    Total increase

2,175



1,363




Assets under management, end of period

$

9,880



$

7,705



28.2%


Percentage of total assets under management

17.3

%


14.6

%



Average assets under management for period

$

9,145



$

6,915



32.2%








Global/International Real Estate






Assets under management, beginning of period

$

9,476



$

10,184




    Inflows

1,596



1,017




    Outflows

(1,867)



(1,900)




    Net outflows

(271)



(883)




    Market appreciation

336



389




    Distributions

(265)



(214)




    Other (2)

127






    Total decrease

(73)



(708)




Assets under management, end of period

$

9,403



$

9,476



(0.8%)


Percentage of total assets under management

16.4

%


18.0

%



Average assets under management for period

$

9,734



$

9,938



(2.1%)








Global Listed Infrastructure






Assets under management, beginning of period

$

5,147



$

5,697




    Inflows

732



918




    Outflows

(402)



(608)




    Net inflows

330



310




    Market appreciation (depreciation)

428



(670)




    Distributions

(208)



(190)




    Total increase (decrease)

550



(550)




Assets under management, end of period

$

5,697



$

5,147



10.7%


Percentage of total assets under management

10.0

%


9.8

%



Average assets under management for period

$

5,488



$

5,559



(1.3%)








Other






Assets under management, beginning of period

$

2,452



$

2,557




    Inflows

998



597




    Outflows

(381)



(394)




    Net inflows

617



203




    Market appreciation (depreciation)

295



(231)




    Distributions

(73)



(77)




    Total increase (decrease)

839



(105)




Assets under management, end of period

$

3,291



$

2,452



34.2%


Percentage of total assets under management

5.8

%


4.7

%



Average assets under management for period

$

2,778



$

2,647



4.9%








Total






Assets under management, beginning of period

$

52,594



$

53,137




    Inflows

16,004



10,990




    Outflows

(9,333)



(8,333)




    Net inflows

6,671



2,657




    Market appreciation

3,098



1,217




    Distributions

(5,165)



(4,417)




    Other (2)






    Total increase (decrease)

4,604



(543)




Assets under management, end of period

$

57,198



$

52,594



8.8%


Average assets under management for period

$

56,369



$

52,722



6.9%





(1)

December 31, 2015 amounts have been reclassified to show distributions separately and dividend reinvestments as inflows.

(2)

Represents transfer of assets under management not related to subscriptions, redemptions, market appreciation (depreciation) or distributions.

 

 

Non-GAAP Reconciliations


Management believes that use of these non-GAAP financial measures may enhance the evaluation of the company's results, as they provide greater transparency into the company's operating results. In addition, these non-GAAP financial measures are used to prepare the company's internal management reports and are used by management in evaluating the company's business.


While management believes that this non-GAAP financial information is useful in evaluating the company's results and operating performance, this information should be considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance with U.S. GAAP.


Reconciliation of U.S. GAAP Net Income Attributable to Common Stockholders and U.S. GAAP Earnings per Share to Net Income Attributable to Common Stockholders, As Adjusted and Earnings per Share, As Adjusted


For the Periods




















(in thousands, except per share data)

 Three Months Ended


Years Ended


December 31,
2016


September 30,
2016


December 31,
2015 (1)


December 31,
2016


December 31,
2015

Net income attributable to common stockholders, U.S. GAAP

$

26,168



$

23,877



$

12,385



$

92,936



$

64,551


Accelerated vesting of restricted stock units (2)

$



$



$



$

1,945



$


Deconsolidation (3)

$

218



$

311



$

645



$

(654)



$

2,136


Results from seed investments (4)

$

(982)



$

(1,234)



$

4,973



$

(5,934)



$

11,833


Tax adjustments (5)

$

(3,031)



$

672



$

875



$

(2,184)



$

174


Net income attributable to common stockholders, as adjusted

$

22,373



$

23,626



$

18,878



$

86,109



$

78,694












Diluted weighted average shares outstanding

46,609



46,544



45,969



46,432



45,897


Diluted earnings per share, U.S. GAAP

$

0.56



$

0.51



$

0.27



$

2.00



$

1.41


Accelerated vesting of restricted stock units (2)

$



$



$



$

0.04



$


Deconsolidation (3)

$



$

0.01



$

0.01



$

(0.01)



$

0.05


Results from seed investments (4)

$

(0.02)



$

(0.02)



$

0.11



$

(0.13)



$

0.25


Tax adjustments (5)

$

(0.06)



$

0.01



$

0.02



$

(0.05)



$


Diluted earnings per share, as adjusted

$

0.48



$

0.51



$

0.41



$

1.85



$

1.71




(1)

During the three months ended December 31, 2015, one of the company's seed investments changed classification from available-for-sale to equity method. As a result, all prior periods have been retroactively adjusted to reflect this investment as if it had been an equity method investment in prior periods.

(2)

Represents amounts attributable to the accelerated vesting of certain restricted stock units in the first quarter of 2016.

(3)

Represents amounts related to deconsolidation of the company's consolidated seed investments in Company-sponsored funds.

(4)

Represents dividend income and realized gains on the company's seed investments classified as available-for-sale, and the company's proportionate share of the results of operations of seed investments classified as equity method investments, including realized and unrealized gains and losses.

(5)

Represents the tax benefit associated with the accelerated vesting of certain restricted stock units for the year ended December 31, 2016 as well as discrete items recorded in each of the periods presented.

 

 

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


For the Periods




















(in thousands, except percentages)

 Three Months Ended


Years Ended


December 31,
2016


September 30,
2016


December 31,
2015 (1)


December 31,
2016


December 31,
2015

Revenue, U.S. GAAP

$

89,434



$

94,388



$

81,671



$

349,876



$

328,655


Deconsolidation (2)

$

29



$

31



$

39



$

147



$

102


Revenue, as adjusted

$

89,463



$

94,419



$

81,710



$

350,023



$

328,757












Operating income, U.S. GAAP

$

35,860



$

37,213



$

30,352



$

135,511



$

127,549


Deconsolidation (2)

$

53



$

85



$

64



$

253



$

150


Accelerated vesting of restricted stock units (3)

$



$



$



$

1,945



$


Operating income, as adjusted

$

35,913



$

37,298



$

30,416



$

137,709



$

127,699












Operating margin, U.S. GAAP

40.1

%


39.4

%


37.2

%


38.7

%


38.8

%

Operating margin, as adjusted

40.1

%


39.5

%


37.2

%


39.3

%


38.8

%



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


For the Periods




















(in thousands)

 Three Months Ended


Years Ended


December 31,
2016


September 30,
2016


December 31,
2015 (1)


December 31,
2016


December 31,
2015

Non-operating income (loss), U.S. GAAP

$

1,427



$

1,356



$

(5,572)



$

7,892



$

(14,805)


Deconsolidation (2)

$

142



$

272



$

632



$

(781)



$

2,200


Results from seed investments (4)

$

(982)



$

(1,234)



$

4,973



$

(5,934)



$

11,833


Non-operating income (loss), as adjusted

$

587



$

394



$

33



$

1,177



$

(772)




(1)

During the three months ended December 31, 2015, one of the company's seed investments changed classification from available-for-sale to equity method. As a result, all prior periods have been retroactively adjusted to reflect this investment as if it had been an equity method investment in prior periods.

(2)

Represents amounts related to deconsolidation of the company's consolidated seed investments in Company-sponsored funds.

(3)

Represents amounts attributable to the accelerated vesting of certain restricted stock units in the first quarter of 2016.

(4)

Represents dividend income and realized gains on the company's seed investments classified as available-for-sale, and the company's proportionate share of the results of operations of seed investments classified as equity method investments, including realized and unrealized gains and losses.

 

 

 



Additional Disclosures


© 2017 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. Based on independent rating by Morningstar, Inc. of investment performance of each Cohen & Steers-sponsored open-end U.S.-registered mutual fund for all share classes for the overall period as of December 31, 2016. 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.

 

 

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SOURCE Cohen & Steers, Inc.