UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~June 30, 2022~~March 31, 2023


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ~~For the transition period from to~~FOR THE TRANSITION PERIOD FROM TO

Commission File Number: 001-32236

________________

COHEN & STEERS, INC.

(Exact Name of Registrant as Specified in its Charter)

________________


Delaware			14-1904657
(State or Other Jurisdiction of Incorporation or Organization)			(I.R.S. Employer Identification No.)

280 Park Avenue

New York, NY 10017

(Address of Principal Executive Offices and Zip Code)

(212) 832-3232

(Registrant's Telephone Number, Including Area Code)

________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.01 par value

CNS

New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares of the registrant's common stock, par value $0.01 per share, outstanding as of ~~July 29, 2022~~April 28, 2023 was ~~48,697,833.~~49,117,301.

COHEN & STEERS, INC. AND SUBSIDIARIES

Form 10-Q

Index


		Page
Part I.	Financial Information

Item 1.	Financial Statements	1

	Condensed Consolidated Statements of Financial Condition (Unaudited)	1

	Condensed Consolidated Statements of Operations (Unaudited)	2

	Condensed Consolidated Statements of Comprehensive Income (Unaudited)	3

	Condensed Consolidated Statements of Changes in Stockholders' Equity ~~and Redeemable Noncontrolling Interests~~ (Unaudited)	4

	Condensed Consolidated Statements of Cash Flows (Unaudited)	65

	Notes to Condensed Consolidated Financial Statements (Unaudited)	87

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	2120

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	4036

Item 4.	Controls and Procedures	4037

Part II.	Other Information *

Item 1.	Legal Proceedings	4138

Item 1A.	Risk Factors	4138

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	4138

Item 6.	Exhibits	4239

Signatures		4340

* Items other than those listed above have been omitted because they are not applicable.

Forward-Looking Statements

This report and other documents filed by us contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect management's current views with respect to, among other things, our 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. We believe that these factors include, but are not limited to, the risks described in the Risk Factors section of our Annual Report on Form 10-K for the year ended December 31, ~~2021~~2022 (the Form 10-K), which is accessible on the Securities and Exchange Commission's website at www.sec.gov and on our 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 this report, the Form 10-K and our other filings with the Securities and Exchange Commission. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

PART I—Financial Information

Item 1. Financial Statements

COHEN & STEERS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited)

(in thousands, except share data)


		June 30, 2022		December 31, 2021			March 31, 2023		December 31, 2022
Assets:	Assets:					Assets:
Cash and cash equivalents	Cash and cash equivalents	$	126,569	$	184,373	Cash and cash equivalents	$	149,518	$	247,418
Investments ($241,289 and $127,912) (1)		308,432		154,654
Investments ($143,311 and $134,929) (1)						Investments ($143,311 and $134,929) (1)	211,352		172,955
Accounts receivable	Accounts receivable	75,714		84,090		Accounts receivable	76,564		70,193
Due from brokers ($4,796 and $1,340) (1)		6,717		3,567
Due from brokers ($450 and $38) (1)						Due from brokers ($450 and $38) (1)	2,356		2,080
Property and equipment—net	Property and equipment—net	8,380		8,938		Property and equipment—net	12,357		8,757
Operating lease right-of-use assets—net	Operating lease right-of-use assets—net	16,729		22,009		Operating lease right-of-use assets—net	132,448		136,430
Goodwill and intangible assets—net	Goodwill and intangible assets—net	18,847		19,696		Goodwill and intangible assets—net	19,226		19,049

Other assets ($766 and $1,589) (1)		15,986		15,360

Other assets ($434 and $576) (1)						Other assets ($434 and $576) (1)	19,582		16,497
Total assets	Total assets	$	577,374	$	492,687	Total assets	$	623,403	$	673,379

Liabilities:	Liabilities:					Liabilities:
Accrued compensation and benefits	Accrued compensation and benefits	$	44,668	$	79,167	Accrued compensation and benefits	$	16,564	$	77,764
Distribution and service fees payable	Distribution and service fees payable	11,956		10,183		Distribution and service fees payable	9,605		8,421
Operating lease liabilities	Operating lease liabilities	18,638		24,525		Operating lease liabilities	137,742		138,809
Income tax payable	Income tax payable	5,487		22,611		Income tax payable	11,275		7,750
Due to brokers ($3,821 and $926) (1)		6,021		927
Other liabilities and accrued expenses ($3,695 and $689) (1)		15,221		10,948
Due to brokers ($784 and $11) (1)						Due to brokers ($784 and $11) (1)	1,223		835
Other liabilities and accrued expenses ($518 and $664) (1)						Other liabilities and accrued expenses ($518 and $664) (1)	17,400		12,857
Total liabilities	Total liabilities	101,991		148,361		Total liabilities	193,809		246,436
Commitments and contingencies (See Note 10)		0		0
Commitments and contingencies (See Note 11)						Commitments and contingencies (See Note 11)
Redeemable noncontrolling interests	Redeemable noncontrolling interests	185,998		89,143		Redeemable noncontrolling interests	87,249		85,335
Stockholders' equity:	Stockholders' equity:					Stockholders' equity:
Common stock, $0.01 par value; 500,000,000 shares authorized; 55,008,024 and 54,267,309 shares issued at June 30, 2022 and December 31, 2021, respectively		550		543
Common stock, $0.01 par value; 500,000,000 shares authorized; 55,726,960 and 55,051,975 shares issued at March 31, 2023 and December 31, 2022, respectively						Common stock, $0.01 par value; 500,000,000 shares authorized; 55,726,960 and 55,051,975 shares issued at March 31, 2023 and December 31, 2022, respectively	558		551
Additional paid-in capital	Additional paid-in capital	742,144		715,847		Additional paid-in capital	781,300		769,373
Accumulated deficit	Accumulated deficit	(193,146)		(231,967)		Accumulated deficit	(165,053)		(171,417)
Accumulated other comprehensive loss	Accumulated other comprehensive loss	(11,051)		(5,886)		Accumulated other comprehensive loss	(9,213)		(10,784)
Treasury stock, at cost, 6,313,095 and 5,997,239 shares at June 30, 2022 and December 31, 2021, respectively		(249,112)		(223,354)
Total stockholders' equity		289,385		255,183
Total liabilities, redeemable noncontrolling interests and stockholders' equity		$	577,374	$	492,687
Treasury stock, at cost, 6,614,110 and 6,329,178 shares at March 31, 2023 and December 31, 2022, respectively						Treasury stock, at cost, 6,614,110 and 6,329,178 shares at March 31, 2023 and December 31, 2022, respectively	(270,610)		(250,169)
Total stockholders’ equity attributable to Cohen & Steers, Inc.						Total stockholders’ equity attributable to Cohen & Steers, Inc.	336,982		337,554
Nonredeemable noncontrolling interests						Nonredeemable noncontrolling interests	5,363		4,054
Total stockholders’ equity						Total stockholders’ equity	342,345		341,608
Total liabilities, redeemable noncontrolling interests and stockholders’ equity						Total liabilities, redeemable noncontrolling interests and stockholders’ equity	$	623,403	$	673,379

_________________________

(1) Asset and liability amounts in parentheses represent the aggregated balances at ~~June 30, 2022~~March 31, 2023 and December 31, ~~2021~~2022 attributable to variable interest entities consolidated by the Company. Refer to Note 4, Investments for further discussion.

See notes to condensed consolidated financial statements

COHEN & STEERS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(in thousands, except per share data)

Three Months Ended
June 30, Six Months Ended
June 30,
2022 2021 2022 2021
Revenue:
Investment advisory and administration fees $ 137,655 $ 134,348 $ 281,324 $ 251,269
Distribution and service fees 9,005 9,199 18,874 17,471
Other 771 722 1,422 1,276
Total revenue 147,431 144,269 301,620 270,016
Expenses:
Employee compensation and benefits 53,857 53,241 108,600 99,003
Distribution and service fees 18,236 18,848 52,187 35,354
General and administrative 13,238 11,466 26,748 21,840
Depreciation and amortization 1,106 1,017 2,100 2,184
Total expenses 86,437 84,572 189,635 158,381
Operating income 60,994 59,697 111,985 111,635
Non-operating income (loss):
Interest and dividend income—net 1,888 837 2,785 1,453
Gain (loss) from investments—net (28,573) 7,778 (25,006) 12,337
Foreign currency gain (loss)—net 1,683 (79) 2,329 (301)
Total non-operating income (loss) (25,002) 8,536 (19,892) 13,489
Income before provision for income taxes 35,992 68,233 92,093 125,124
Provision for income taxes 9,843 15,827 19,103 20,288
Net income 26,149 52,406 72,990 104,836
Net (income) loss attributable to redeemable noncontrolling interests 25,807 (5,827) 20,984 (9,405)
Net income attributable to common stockholders $ 51,956 $ 46,579 $ 93,974 $ 95,431
Earnings per share attributable to common stockholders:
Basic $ 1.06 $ 0.96 $ 1.93 $ 1.98
Diluted $ 1.06 $ 0.95 $ 1.91 $ 1.95
Weighted average shares outstanding:
Basic 48,805 48,285 48,739 48,216
Diluted 49,208 48,951 49,272 48,831


	Three Months Ended March 31,
	2023		2022
Revenue:
Investment advisory and administration fees	$	118,034	$	143,669
Distribution and service fees	7,562		9,869
Other	486		651
Total revenue	126,082		154,189
Expenses:
Employee compensation and benefits	48,857		54,743
Distribution and service fees	14,216		33,951
General and administrative	17,122		13,510
Depreciation and amortization	988		994
Total expenses	81,183		103,198
Operating income	44,899		50,991
Non-operating income (loss):
Interest and dividend income—net	3,216		897
Gain (loss) from investments—net	(308)		3,567
Foreign currency gain (loss)—net	(1,276)		646
Total non-operating income (loss)	1,632		5,110
Income before provision for income taxes	46,531		56,101
Provision for income taxes	10,233		9,260
Net income	36,298		46,841
Net (income) loss attributable to noncontrolling interests	(984)		(4,823)
Net income attributable to common stockholders	$	35,314	$	42,018

Earnings per share attributable to common stockholders:
Basic	$	0.72	$	0.86
Diluted	$	0.71	$	0.85

Weighted average shares outstanding:
Basic	49,199		48,673
Diluted	49,402		49,337

See notes to condensed consolidated financial statements

COHEN & STEERS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

(in thousands)


		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended March 31,
		2022		2021		2022		2021			2023		2022
Net income	Net income	$	26,149	$	52,406	$	72,990	$	104,836	Net income	$	36,298	$	46,841
Net (income) loss attributable to redeemable noncontrolling interests		25,807		(5,827)		20,984		(9,405)
Net (income) loss attributable to noncontrolling interests										Net (income) loss attributable to noncontrolling interests	(984)		(4,823)
Net income attributable to common stockholders	Net income attributable to common stockholders	51,956		46,579		93,974		95,431		Net income attributable to common stockholders	35,314		42,018
Other comprehensive income (loss):	Other comprehensive income (loss):									Other comprehensive income (loss):
Foreign currency translation gain (loss)	Foreign currency translation gain (loss)	(3,614)		199		(5,165)		(396)		Foreign currency translation gain (loss)	1,571		(1,551)
Total comprehensive income attributable to common stockholders	Total comprehensive income attributable to common stockholders	$	48,342	$	46,778	$	88,809	$	95,035	Total comprehensive income attributable to common stockholders	$	36,885	$	40,467

See notes to condensed consolidated financial statements

COHEN & STEERS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY ~~AND~~

~~REDEEMABLE NONCONTROLLING INTERESTS~~ (Unaudited)

(in thousands, except per share data)


		Three Months Ended June 30, 2022															Three Months Ended March 31, 2023
		Common Stock		Additional Paid-In Capital		Accumulated Deficit		Accumulated Other Comprehensive Income (Loss)		Treasury Stock		Total Stockholders' Equity		Redeemable Noncontrolling Interests			Common Stock		Additional Paid-In Capital		Accumulated Deficit		Accumulated Other Comprehensive Income (Loss)		Treasury Stock		Nonredeemable Noncontrolling Interests		Total Stockholders' Equity		Redeemable Noncontrolling Interests
April 1, 2022		$	550	$	728,644	$	(217,453)	$	(7,437)	$	(248,939)	$	255,365	$	184,656
January 1, 2023																January 1, 2023	$	551	$	769,373	$	(171,417)	$	(10,784)	$	(250,169)	$	4,054	$	341,608	$	85,335
Dividends ($0.57 per share)																Dividends ($0.57 per share)	—		—		(28,950)		—		—		—		(28,950)		—
Issuance of common stock																Issuance of common stock	7		449		—		—		—		—		456		—
Repurchase of common stock																Repurchase of common stock	—		—		—		—		(20,441)		—		(20,441)		—
Issuance of restricted stock units—net																Issuance of restricted stock units—net	—		1,178		—		—		—		—		1,178		—
Amortization of restricted stock units—net																Amortization of restricted stock units—net	—		10,300		—		—		—		—		10,300		—

Net income (loss)																Net income (loss)	—		—		35,314		—		—		(247)		35,067		1,231
Other comprehensive income (loss)																Other comprehensive income (loss)	—		—		—		1,571		—		—		1,571		—
Net contributions (distributions) attributable to noncontrolling interests																Net contributions (distributions) attributable to noncontrolling interests	—		—		—		—		—		1,556		1,556		683

March 31, 2023																March 31, 2023	$	558	$	781,300	$	(165,053)	$	(9,213)	$	(270,610)	$	5,363	$	342,345	$	87,249

																	Three Months Ended March 31, 2022
																	Common Stock		Additional Paid-In Capital		Accumulated Deficit		Accumulated Other Comprehensive Income (Loss)		Treasury Stock		Nonredeemable Noncontrolling Interests		Total Stockholders' Equity		Redeemable Noncontrolling Interests
January 1, 2022																January 1, 2022	$	543	$	715,847	$	(231,967)	$	(5,886)	$	(223,354)	$	—	$	255,183	$	89,143
Dividends ($0.55 per share)	Dividends ($0.55 per share)	—		—		(27,649)		—		—		(27,649)		—		Dividends ($0.55 per share)	—		—		(27,504)		—		—		—		(27,504)		—
Issuance of common stock	Issuance of common stock	—		358		—		—		—		358		—		Issuance of common stock	7		435		—		—		—		—		442		—
Repurchase of common stock	Repurchase of common stock	—		—		—		—		(173)		(173)		—		Repurchase of common stock	—		—		—		—		(25,585)		—		(25,585)		—
Issuance of restricted stock units—net	Issuance of restricted stock units—net	—		1,391		—		—		—		1,391		—		Issuance of restricted stock units—net	—		1,250		—		—		—		—		1,250		—
Amortization of restricted stock units—net	Amortization of restricted stock units—net	—		11,751		—		—		—		11,751		—		Amortization of restricted stock units—net	—		11,112		—		—		—		—		11,112		—

Net income (loss)	Net income (loss)	—		—		51,956		—		—		51,956		(25,807)		Net income (loss)	—		—		42,018		—		—		—		42,018		4,823
Other comprehensive income (loss)	Other comprehensive income (loss)	—		—		—		(3,614)		—		(3,614)		—		Other comprehensive income (loss)	—		—		—		(1,551)		—		—		(1,551)		—
Net contributions (distributions) attributable to redeemable noncontrolling interests		—		—		—		—		—		—		27,149

June 30, 2022		$	550	$	742,144	$	(193,146)	$	(11,051)	$	(249,112)	$	289,385	$	185,998

		Three Months Ended June 30, 2021
		Common Stock		Additional Paid-In Capital		Accumulated Deficit		Accumulated Other Comprehensive Income (Loss)		Treasury Stock		Total Stockholders' Equity		Redeemable Noncontrolling Interests
April 1, 2021		$	542	$	680,466	$	(265,034)	$	(4,729)	$	(222,018)	$	189,227	$	62,365
Dividends ($0.45 per share)		—		—		(22,289)		—		—		(22,289)		—
Issuance of common stock		—		311		—		—		—		311		—
Repurchase of common stock		—		—		—		—		(81)		(81)		—
Issuance of restricted stock units—net		—		1,640		—		—		—		1,640		—
Amortization of restricted stock units—net		—		10,302		—		—		—		10,302		—
Net income (loss)		—		—		46,579				—		46,579		5,827
Other comprehensive income (loss)		—		—		—		199		—		199		—
Net contributions (distributions) attributable to redeemable noncontrolling interests		—		—		—		—		—		—		(2,111)

June 30, 2021		$	542	$	692,719	$	(240,744)	$	(4,530)	$	(222,099)	$	225,888	$	66,081
Net contributions (distributions) attributable to noncontrolling interests																Net contributions (distributions) attributable to noncontrolling interests	—		—		—		—		—		—		—		90,690
March 31, 2022																March 31, 2022	$	550	$	728,644	$	(217,453)	$	(7,437)	$	(248,939)	$	—	$	255,365	$	184,656

See notes to condensed consolidated financial statements

COHEN & STEERS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF ~~CHANGES IN STOCKHOLDERS' EQUITY AND~~

~~REDEEMABLE NONCONTROLLING INTERESTS (Unaudited)—(Continued)~~

~~(in thousands, except per share data)~~

Six Months Ended June 30, 2022
Common
Stock Additional
Paid-In
Capital Accumulated Deficit Accumulated Other
Comprehensive
Income (Loss) Treasury
Stock Total
Stockholders'
Equity Redeemable
Noncontrolling
Interests
January 1, 2022 $ 543 $ 715,847 $ (231,967) $ (5,886) $ (223,354) $ 255,183 $ 89,143
Dividends ($1.10 per share) — — (55,153) — — (55,153) —
Issuance of common stock 7 793 — — — 800 —
Repurchase of common stock — — — — (25,758) (25,758) —
Issuance of restricted stock units—net — 2,641 — — — 2,641 —
Amortization of restricted stock units—net — 22,863 — — — 22,863 —
Net income (loss) — — 93,974 — — 93,974 (20,984)
Other comprehensive income (loss) — — — (5,165) — (5,165) —
Net contributions (distributions) attributable to redeemable noncontrolling interests — — — — — — 117,839
June 30, 2022 $ 550 $ 742,144 $ (193,146) $ (11,051) $ (249,112) $ 289,385 $ 185,998
Six Months Ended June 30, 2021
Common
Stock Additional
Paid-In
Capital Accumulated Deficit Accumulated Other
Comprehensive
Income (Loss) Treasury
Stock Total
Stockholders'
Equity Redeemable
Noncontrolling
Interests
January 1, 2021 $ 535 $ 670,142 $ (291,542) $ (4,134) $ (200,762) $ 174,239 $ 50,665
Dividends ($0.90 per share) — — (44,633) — — (44,633) —
Issuance of common stock 7 734 — — — 741 —
Repurchase of common stock — — — — (21,337) (21,337) —
Issuance of restricted stock units—net — 2,433 — — — 2,433 —
Amortization of restricted stock units—net — 19,410 — — — 19,410 —
Net income (loss) — — 95,431 — — 95,431 9,405
Other comprehensive income (loss) — — — (396) — (396) —
Net contributions (distributions) attributable to redeemable noncontrolling interests — — — — — — 6,011
June 30, 2021 $ 542 $ 692,719 $ (240,744) $ (4,530) $ (222,099) $ 225,888 $ 66,081

~~See notes to condensed consolidated financial statements~~

~~COHEN & STEERS, INC. AND SUBSIDIARIES~~

~~CONDENSED CONSOLIDATED STATEMENTS OF~~ CASH FLOWS (Unaudited)

(in thousands)


		Six Months Ended June 30,					Three Months Ended March 31,
		2022		2021			2023		2022
Cash flows from operating activities:	Cash flows from operating activities:					Cash flows from operating activities:
Net income	Net income	$	72,990	$	104,836	Net income	$	36,298	$	46,841
Adjustments to reconcile net income to net cash provided by (used in) operating activities:	Adjustments to reconcile net income to net cash provided by (used in) operating activities:					Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Stock-based compensation expense—net	Stock-based compensation expense—net	24,139		20,780		Stock-based compensation expense—net	10,698		11,757

Depreciation and amortization	Depreciation and amortization	2,713		2,950		Depreciation and amortization	1,230		1,368
Amortization of right-of-use assets	Amortization of right-of-use assets	5,426		5,121		Amortization of right-of-use assets	3,982		2,682

(Gain) loss from investments—net	(Gain) loss from investments—net	25,006		(12,337)		(Gain) loss from investments—net	308		(3,567)
Deferred income taxes	Deferred income taxes	1,834		4,138		Deferred income taxes	3,369		3,486
Foreign currency (gain) loss	Foreign currency (gain) loss	2,462		2,095		Foreign currency (gain) loss	(117)		974
Changes in operating assets and liabilities:	Changes in operating assets and liabilities:					Changes in operating assets and liabilities:
Accounts receivable	Accounts receivable	5,914		(11,167)		Accounts receivable	(6,254)		(6,307)
Due from brokers	Due from brokers	(2,977)		(2,089)		Due from brokers	(282)		(59,429)
Investments within consolidated investment vehicles						Investments within consolidated investment vehicles	(5,577)		(100,755)

Investments within consolidated investment vehicles		(142,774)		(8,687)
Other assets	Other assets	6,799		(856)		Other assets	(5,744)		4,024
Accrued compensation and benefits	Accrued compensation and benefits	(34,499)		(13,444)		Accrued compensation and benefits	(61,200)		(54,417)
Distribution and service fees payable	Distribution and service fees payable	1,773		2,489		Distribution and service fees payable	1,184		(260)
Operating lease liabilities	Operating lease liabilities	(6,033)		(5,724)		Operating lease liabilities	(1,067)		(2,984)
Due to brokers	Due to brokers	4,754		2,902		Due to brokers	1,184		44,760
Income tax payable	Income tax payable	(17,068)		2,863		Income tax payable	3,515		4,523
Other liabilities and accrued expenses	Other liabilities and accrued expenses	771		(3,847)		Other liabilities and accrued expenses	3,507		855
Net cash provided by (used in) operating activities	Net cash provided by (used in) operating activities	(48,770)		90,023		Net cash provided by (used in) operating activities	(14,966)		(106,449)
Cash flows from investing activities:	Cash flows from investing activities:					Cash flows from investing activities:

Purchases of investments	Purchases of investments	(73,866)		(33,214)		Purchases of investments	(38,536)		(36,478)
Proceeds from sales and maturities of investments	Proceeds from sales and maturities of investments	31,827		72,246		Proceeds from sales and maturities of investments	8,115		6,787
Purchases of property and equipment	Purchases of property and equipment	(1,562)		(884)		Purchases of property and equipment	(4,586)		(681)

Net cash provided by (used in) investing activities	Net cash provided by (used in) investing activities	(43,601)		38,148		Net cash provided by (used in) investing activities	(35,007)		(30,372)
Cash flows from financing activities:	Cash flows from financing activities:					Cash flows from financing activities:
Issuance of common stock—net	Issuance of common stock—net	680		629		Issuance of common stock—net	387		375
Repurchase of common stock	Repurchase of common stock	(25,758)		(21,337)		Repurchase of common stock	(20,441)		(25,585)
Dividends to stockholders	Dividends to stockholders	(53,668)		(43,458)		Dividends to stockholders	(28,101)		(26,832)
Net contributions (distributions) from redeemable noncontrolling interests		117,839		6,011
Debt issuance costs						Debt issuance costs	(603)		—
Net contributions (distributions) from noncontrolling interests						Net contributions (distributions) from noncontrolling interests	2,239		90,690
Net cash provided by (used in) financing activities	Net cash provided by (used in) financing activities	39,093		(58,155)		Net cash provided by (used in) financing activities	(46,519)		38,648
Net increase (decrease) in cash and cash equivalents	Net increase (decrease) in cash and cash equivalents	(53,278)		70,016		Net increase (decrease) in cash and cash equivalents	(96,492)		(98,173)
Effect of foreign exchange rate changes on cash and cash equivalents	Effect of foreign exchange rate changes on cash and cash equivalents	(4,526)		(19)		Effect of foreign exchange rate changes on cash and cash equivalents	1,409		(1,383)
Cash and cash equivalents, beginning of the period	Cash and cash equivalents, beginning of the period	184,373		41,232		Cash and cash equivalents, beginning of the period	248,714		184,373
Cash and cash equivalents, end of the period	Cash and cash equivalents, end of the period	$	126,569	$	111,229	Cash and cash equivalents, end of the period	$	153,631	$	84,817

See notes to condensed consolidated financial statements

COHEN & STEERS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS—(Continued)

(UNAUDITED)

Supplemental disclosures of cash flow information:

The following table provides a reconciliation of cash and cash equivalents reported within the condensed consolidated statements of financial condition to the cash and cash equivalents reported within the condensed consolidated statements of cash flows above:


	As of March 31,
(in thousands)	2023		2022
Cash and cash equivalents	$	149,518	$	84,817
Cash included in investments (1)	4,113		—
Total cash and cash equivalents within condensed consolidated statements of cash flows	$	153,631	$	84,817

________________________

(1) Cash included in investments represents operating cash held in consolidated investment vehicles.

During the ~~six~~three months ended ~~June 30,~~March 31, 2023 and 2022, ~~and 2021,~~ the Company paid taxes, net of ~~$34.3~~tax refunds, of $3.3 million and ~~$13.3~~$1.3 million, respectively.

Supplemental disclosures of non-cash investing and financing activities:

In connection with its stock incentive plan, the Company issued dividend equivalents in the form of restricted stock units, net of forfeitures, in the amount of ~~$1.5~~$0.8 million and ~~$1.2~~$0.7 million for the ~~six~~three months ended ~~June 30,~~March 31, 2023 and 2022, ~~and 2021,~~ respectively. These amounts are included in the issuance of restricted stock units—net and in dividends in the condensed consolidated statements of changes in stockholders' equity.

COHEN & STEERS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

1. Organization and Description of Business

Cohen & Steers, Inc. (CNS) was organized as a Delaware corporation on March 17, 2004. CNS is the holding company for its direct and indirect subsidiaries, including Cohen & Steers Capital Management, Inc. (CSCM), Cohen & Steers Securities, LLC (CSS), Cohen & Steers UK Limited (CSUK), Cohen & Steers Ireland Limited (CSIL), Cohen & Steers Asia Limited (CSAL) ~~and~~, Cohen & Steers Japan Limited (CSJL) and Cohen & Steers Singapore Private Limited (CSSG) (collectively, the Company).

The Company is a global investment manager specializing in real assets and alternative income, including real estate, preferred securities, infrastructure, resource equities, commodities, as well as multi-strategy solutions. Founded in 1986, the Company is headquartered in New York City, with offices in London, Dublin, Hong Kong, Tokyo and ~~Tokyo.~~

Singapore.

2. Basis of Presentation and Significant Accounting Policies

The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). The condensed consolidated financial statements set forth herein include the accounts of CNS and its direct and indirect subsidiaries. Intercompany balances and transactions have been eliminated in consolidation.

The condensed consolidated financial statements of the Company included herein are unaudited and have been prepared in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the interim results have been made. The Company's condensed consolidated financial statements and the related notes should be read together with the consolidated financial statements and the related notes included in the Company's Annual Report on Form 10-K for the year ended December 31, ~~2021.~~2022.

Accounting Estimates—The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the dates of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Management believes the estimates used in preparing the condensed consolidated financial statements are reasonable and prudent. Actual results could differ from those estimates.

Consolidation of ~~investment vehicles~~Investment Vehicles—The Company's financial interests in investment vehicles, including the management fees that are received, are evaluated at inception and thereafter, if there is a reconsideration event, in order to determine whether to apply the Variable Interest Entity (VIE) model or the Voting Interest Entity (VOE) model.

A VIE is an entity in which either the equity investment at risk is not sufficient to permit the entity to finance its own activities without additional financial support or the group of holders of the equity investment at risk lack certain characteristics of a controlling financial interest. The primary beneficiary is the entity that has the power to direct the activities of the VIE that most significantly affect its performance, and the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. Subscriptions and redemptions or amendments to the governing documents of the respective entities could affect an entity's status as a VIE or the determination of the primary beneficiary. Limited partnerships and similar entities are determined to be a VIE when the Company is the general partner and the limited partners do not hold substantive kick-out or participation rights. The Company assesses whether it is the primary beneficiary of any VIEs identified by evaluating its economic interests in the entity held either directly by the Company and its affiliates or indirectly through employees. VIEs for which the Company is deemed to be the primary beneficiary are consolidated.

Investments that are determined to be VOEs are consolidated when the Company’s ownership interest is greater than 50% of the outstanding voting interests of the vehicle.

The Company records noncontrolling interests in consolidated investment vehicles for which the Company’s ownership is less than 100%.

COHEN & STEERS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

Cash and Cash Equivalents—Cash and cash equivalents ~~are on deposit with several highly rated financial institutions and~~ include short-term, highly liquid investments, which are readily convertible into cash and have original maturities of three months or less.

Due from/to Brokers—The Company, including the consolidated investment vehicles, may transact with brokers for certain investment activities. The clearing and custody operations for these investment activities are performed pursuant to contractual agreements. The due from/to brokers balances represent cash and/or cash collateral balances at brokers/custodians and/or receivables and payables for unsettled securities transactions with brokers/custodians.

Investments—Management of the Company determines the appropriate classification of its investments at the time of purchase and re-evaluates such determination no less than on a quarterly basis. The Company's investments are categorized as follows:

•Equity investments at fair value are comprised of corporate investments and investments held within the consolidated investment ~~vehicles, which generally represent common stocks, limited partnership interests, master limited partnership interests, preferred securities and other seed investments.~~vehicles.

•Trading investments are comprised of corporate investments and investments held within the consolidated investment ~~vehicles, which generally represent U.S. Treasury securities and corporate debt securities.~~vehicles.

•Equity method investments, which generally represent seed investments in investment vehicles for which the Company is able to exercise significant influence but not control over the investment. When using the equity method, the Company recognizes its respective share of net income or loss for the period which is recorded in gain (loss) from investments—net in the Company's condensed consolidated statements of operations.

Realized and unrealized gains and losses on equity investments at fair value, trading investments and equity method investments are recorded in gain (loss) from investments—net in the Company's condensed consolidated statements of operations.

From time to time, the Company, including the consolidated investment vehicles, may enter into derivative contracts, including options, futures and swaps contracts, to gain exposure to the underlying commodities markets or to economically hedge market risk of the underlying portfolios. Gains and losses on derivative contracts are recorded in gain (loss) from investments—net in the Company's condensed consolidated statements of operations. The fair values of these instruments are recorded in other assets or other liabilities and accrued expenses on the Company's condensed consolidated statements of financial condition.

Additionally, from time to time, the Company, including the consolidated investment vehicles, may enter into forward foreign exchange contracts to economically hedge currency exposure. These instruments are measured at fair value based on the prevailing forward exchange rate with gains and losses recorded in foreign currency gain (loss)—net in the Company’s condensed consolidated statements of operations. The fair values of these contracts are recorded in other assets or other liabilities and accrued expenses on the Company’s condensed consolidated statements of financial condition.

Leases—The Company determines if an arrangement is a lease at inception. The Company has operating leases for corporate offices and certain information technology equipment which are included in operating lease right-of-use (ROU) assets and operating lease liabilities on the Company’s condensed consolidated statements of financial condition.

ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent obligations to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized at commencement date based on the net present value of lease payments over the life of the lease. The majority of the Company’s lease agreements do not provide an implicit rate. As a result, the Company used its estimated incremental borrowing rate based on the information available as of lease commencement dates in determining the present value of lease payments. The operating lease ROU assets reflect any upfront lease payments made as well as lease incentives received. The lease terms may include options to extend or terminate the lease and these are factored into the determination of the ROU asset and lease liability at lease inception when and if it is reasonably certain that the Company will exercise that option. Lease expense for fixed lease payments is recognized on a straight-line basis over the lease term.

The Company has certain lease agreements with non-lease components such as maintenance and executory costs, which are accounted for separately and not included in ROU assets.

COHEN & STEERS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

ROU assets are tested for impairment whenever changes in facts or circumstances indicate that the carrying amount of an asset may not be recoverable. Modification of a lease term would result in remeasurement of the lease liability and a corresponding adjustment to the ROU ~~assets.~~asset.

~~Redeemable~~ Noncontrolling Interests—~~Redeemable noncontrolling~~Noncontrolling interests ~~represent~~consist of nonredeemable and redeemable third-party interests in the Company's consolidated investment vehicles. ~~These~~Noncontrolling interests that are not redeemable at the option of the investors are classified as nonredeemable noncontrolling interests and are included in stockholders’ equity. Noncontrolling interests that are redeemable at the option of the investors are classified as redeemable noncontrolling interests and ~~therefore are~~ not treated as permanent equity. ~~Redeemable noncontrolling~~Noncontrolling interests are recorded at fair value which approximates the ~~redemption~~net asset value at each reporting period.

Investment Advisory and Administration Fees—The Company earns revenue by providing asset management services to institutional accounts, open-end and closed-end funds as well as model-based portfolios. Investment advisory fees are earned pursuant to the terms of investment management agreements and are generally based on a contractual fee rate applied to the average assets under management. The Company also earns administration fees from certain open-end and closed-end funds pursuant to the terms of underlying administration contracts. Administration fees are based on the average daily assets under management of such funds. Investment advisory and administration fee revenue is recognized when earned and is recorded net of any fund reimbursements. The investment advisory and administration contracts each include a single performance obligation as the services provided are not separately identifiable and are accounted for as a series satisfied over time using a time-based method (days elapsed). Additionally, investment advisory and administration fees represent variable consideration, as fees are based on average assets under management which fluctuate daily.

In certain instances, the Company may earn performance fees when specified performance hurdles are met during the performance period. Performance fees are forms of variable consideration and are not recognized until it becomes probable that there will not be a significant reversal of the cumulative revenue recognized.

Distribution and Service Fee Revenue—Distribution and service fee revenue is based on the average daily net assets of certain share classes of open-end funds distributed by CSS. Distribution and service fee revenue is earned daily and is recorded gross of any third-party distribution and service fee expense for applicable share classes.

Distribution fee agreements include a single performance obligation that is satisfied at a point in time when an investor purchases shares in an open-end fund. For all periods presented, a portion of the distribution fee revenue recognized in the period may relate to performance obligations satisfied (or partially satisfied) in prior periods. Service fee agreements include a single performance obligation as the services provided are not separately identifiable and are accounted for as a series satisfied over time using a time-based method (days elapsed). Additionally, distribution and service fees represent variable consideration, as fees are based on average assets under management which fluctuate daily.

Distribution and Service Fee Expense—Distribution and service fee expense includes distribution fees, shareholder servicing fees and intermediary assistance payments.

Distribution fees represent payments made to qualified intermediaries for assistance in connection with the distribution of certain open-end funds' shares and for other expenses such as advertising, printing and distribution of prospectuses to investors. Such amounts may also be used to pay financial intermediaries for services as specified in the terms of written agreements complying with Rule 12b-1 of the Investment Company Act of 1940. Distribution fees are based on average daily net assets under management of certain share classes of certain of the funds.

Shareholder servicing fees represent payments made to qualified intermediaries for shareholder account service and maintenance. These services are provided pursuant to written agreements with such qualified institutions. Shareholder servicing fees are generally based on average daily net assets under management.

Intermediary assistance payments represent payments to qualified intermediaries for activities related to distribution, shareholder servicing as well as marketing and support of certain open-end funds and are incremental to those described above. Intermediary assistance payments are generally based on average daily net assets under management.

Stock-based Compensation—The Company recognizes compensation expense for the grant-date fair value of restricted stock unit awards to certain employees. This expense is recognized over the period during which employees are required to provide service. Forfeitures are recorded as incurred. Any change to the key terms of an employee’s award subsequent to the

109

COHEN & STEERS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

grant date is evaluated and, if necessary, accounted for as a modification. If the modification results in the remeasurement of the fair value of the award, the remeasured compensation cost is recognized over the remaining service period.

Income Taxes—The Company records the current and deferred tax consequences of all transactions that have been recognized in the condensed consolidated financial statements in accordance with the provisions of the enacted tax laws. Deferred tax assets are recognized for temporary differences that will result in deductible amounts in future years at tax rates that are expected to apply in those years. Deferred tax liabilities are recognized for temporary differences that will result in taxable income in future years at tax rates that are expected to apply in those years. The Company records a valuation allowance, when necessary, to reduce deferred tax assets to an amount that more likely than not will be realized. The effective tax rate for interim periods is based on the Company's best estimate of the effective tax rate expected to be applied

to the full fiscal year adjusted for discrete tax items during the period.

The calculation of tax liabilities involves uncertainties in the application of complex tax laws and regulations across the Company's global operations. A tax benefit from an uncertain tax position is recognized when it is more likely than not that the position will be sustained upon examination, including resolution of any related appeals or litigation processes, on the basis of the technical merits. The Company records potential interest and penalties related to uncertain tax positions in the provision for income taxes in the condensed consolidated statements of operations.

Currency Translation and Transactions—Assets and liabilities of subsidiaries having non-U.S. dollar functional currencies are translated at exchange rates at the applicable condensed consolidated statement of financial condition date. Revenue and expenses of such subsidiaries are translated at average exchange rates during the period. The gains or losses resulting from translating non-U.S. dollar functional currency into U.S. dollars are included in the Company's condensed consolidated statements of comprehensive income. The cumulative translation adjustment was $(9.2) million and $(10.8) million at March 31, 2023 and December 31, 2022, respectively, and was reported within accumulated other comprehensive income (loss) on the condensed consolidated statements of financial condition. Gains or losses resulting from transactions denominated in currencies other than the U.S. dollar within certain foreign subsidiaries and gains and losses arising on revaluation of U.S. dollar-denominated assets and liabilities held by certain foreign subsidiaries are included in foreign currency gain (loss)—net in the Company’s condensed consolidated statements of operations.

The cumulative translation adjustment was $(11.1) million and $(5.9) million at June 30, 2022 and December 31, 2021, respectively, and was reported within accumulated other comprehensive income (loss) on the condensed consolidated statements of financial condition.

Comprehensive Income—The Company reports all changes in comprehensive income in the condensed consolidated statements of comprehensive income. Comprehensive income generally includes net income or loss attributable to common stockholders and amounts attributable to foreign currency translation gain (loss).

Recently Issued Accounting Pronouncements—In June 2022, the Financial Accounting Standards Board ~~(FASB)~~ issued Accounting Standards Update 2022-03 (ASU), Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The standard clarifies that contractual sale restrictions are not considered in measuring the fair value of equity securities, which would be a change in practice for certain entities. The ASU also indicates that a contractual sale restriction is not a separate unit of account, and requires new disclosures for all entities with equity securities subject to a contractual sale restriction. This new guidance will be effective on January 1, 2024. The Company does not expect that the adoption of this new standard will have a material effect on the Company's condensed consolidated financial statements and related disclosures.

COHEN & STEERS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

3. Revenue

The following tables summarize revenue recognized from contracts with customers by client domicile and by investment vehicle:


	Three Months Ended March 31,
(in thousands)	2023		2022
Client domicile:
North America	$	109,770	$	135,200
Japan	8,119		9,523
Europe, Middle East and Africa	4,887		5,953
Asia Pacific excluding Japan	3,306		3,513
Total	$	126,082	$	154,189


	Three Months Ended March 31,
(in thousands)	2023		2022







Investment vehicle:
Open-end funds	$	70,568	$	90,185
Institutional accounts	30,629		36,683
Closed-end funds	24,885		27,321

Total	$	126,082	$	154,189

4. Investments

The following table summarizes the Company's investments:


(in thousands)	March 31, 2023		December 31, 2022
Equity investments at fair value	$	164,255	$	157,646
Trading	47,077		15,289

Equity method	20		20
Total investments	$	211,352	$	172,955

The following table summarizes gain (loss) from investments—net, including derivative financial instruments, the majority of which are used to economically hedge certain exposures (see Note 6, Derivatives):


	Three Months Ended March 31,
(in thousands)	2023		2022
Net realized gains (losses) during the period	$	(2,330)	$	8,181
Net unrealized gains (losses) during the period on investments still held at the end of the period	2,022		(4,614)
Gain (loss) from investments—net (1)	$	(308)	$	3,567

________________________

(1) Included gain (loss) attributable to noncontrolling interests.

COHEN & STEERS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

~~3. Revenue~~

~~The following tables summarize revenue recognized from contracts with customers by client domicile and by investment vehicle:~~

Three Months Ended
June 30, Six Months Ended
June 30,
(in thousands) 2022 2021 2022 2021
Client domicile:
North America $ 129,428 $ 124,126 $ 264,628 $ 234,442
Japan 9,263 9,529 18,786 18,061
Europe, Middle East and Africa 5,405 7,295 11,358 11,276
Asia Pacific excluding Japan 3,335 3,319 6,848 6,237
Total $ 147,431 $ 144,269 $ 301,620 $ 270,016

Three Months Ended
June 30, Six Months Ended
June 30,
(in thousands) 2022 2021 2022 2021
Investment vehicle:
Open-end funds $ 85,561 $ 79,627 $ 175,746 $ 149,056
Institutional accounts 34,429 37,381 71,112 68,368
Closed-end funds 27,441 27,261 54,762 52,592
Total $ 147,431 $ 144,269 $ 301,620 $ 270,016

~~4. Investments~~

~~The following table summarizes the Company's investments:~~
(in thousands) June 30,
2022 December 31, 2021
Equity investments at fair value $ 229,103 $ 130,930
Trading 79,308 23,711
Equity method 21 13
Total investments $ 308,432 $ 154,654

~~The following table summarizes gain (loss) from investments—net~~:

Three Months Ended
June 30, Six Months Ended
June 30,
(in thousands) 2022 2021 2022 2021
Net realized gains (losses) during the period $ 2,664 $ 2,567 $ 10,845 $ 4,456
Net unrealized gains (losses) during the period on investments
still held at the end of the period
(31,237) 5,211 (35,851) 7,881
Gain (loss) from investments—net (1)
$ (28,573) $ 7,778 $ (25,006) $ 12,337
~~________________________~~

~~(1)Included gain (loss) on derivative contracts, which are utilized to hedge a portion of the market risk of the Company's seed investments.~~

At ~~June 30, 2022~~March 31, 2023 and December 31, ~~2021,~~2022, the Company's consolidated VIEs included the Cohen & Steers SICAV Global Listed Infrastructure Fund ~~(GLI SICAV)~~(SICAV GLI), the Cohen & Steers SICAV Global Real Estate Fund (SICAV GRE)~~, the Cohen & Steers SICAV Diversified Real Assets Fund (SICAV RAP)~~, the Cohen & Steers Co-Investment Partnership, L.P. (GRP-CIP) and the Cohen & Steers Real Estate Opportunities Fund, L.P. (REOF).

~~COHEN & STEERS, INC. AND SUBSIDIARIES~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)~~

~~(UNAUDITED)~~

The following tables summarize the ~~condensed consolidated~~ statements of financial condition attributable to the Company's consolidated VIEs:


															March 31, 2023
(in thousands)	(in thousands)	June 30, 2022												(in thousands)	SICAV GLI		SICAV GRE		GRP-CIP		REOF		Total
		GLI SICAV		SICAV GRE		SICAV RAP		GRP-CIP		REOF		Total
Assets (1)	Assets (1)													Assets (1)
Investments	Investments	$	22,760	$	82,461	$	115,648	$	157	$	20,263	$	241,289	Investments	$	36,713	$	81,647	$	148	$	24,803	$	143,311
Due from brokers	Due from brokers	—		548		4,218		30		—		4,796		Due from brokers	81		348		21		—		450
Other assets	Other assets	75		276		402		—		13		766		Other assets	124		240		—		70		434
Total assets	Total assets	22,835		83,285		120,268		187		20,276		246,851		Total assets	36,918		82,235		169		24,873		144,195

Liabilities (1)	Liabilities (1)													Liabilities (1)
Due to brokers	Due to brokers	$	—	$	511	$	3,310	$	—	$	—	$	3,821	Due to brokers	$	70	$	714	$	—	$	—	$	784
Other liabilities and accrued expenses	Other liabilities and accrued expenses	40		141		3,004		5		505		3,695		Other liabilities and accrued expenses	69		131		5		313		518
Total liabilities	Total liabilities	40		652		6,314		5		505		7,516		Total liabilities	139		845		5		313		1,302

Net assets	Net assets	$	22,795	$	82,633	$	113,954	$	182	$	19,771	$	239,335	Net assets	$	36,779	$	81,390	$	164	$	24,560	$	142,893

Attributable to the Company	Attributable to the Company	$	7,858	$	12,342	$	13,184	$	182	$	19,771	$	53,337	Attributable to the Company	$	19,245	$	11,675	$	164	$	19,197	$	50,281
Attributable to redeemable non-controlling interests		14,937		70,291		100,770		—		—		185,998
Attributable to noncontrolling interests														Attributable to noncontrolling interests	17,534		69,715		—		5,363		92,612
Net assets	Net assets	$	22,795	$	82,633	$	113,954	$	182	$	19,771	$	239,335	Net assets	$	36,779	$	81,390	$	164	$	24,560	$	142,893

_________________________

(1) The assets may only be used to settle obligations of each VIE and the liabilities are the sole obligation of each VIE, for which creditors do not have recourse to the general credit of the Company.


		December 31, 2021													December 31, 2022
(in thousands)	(in thousands)	GLI SICAV		SICAV GRE		SICAV RAP		GRP-CIP		REOF		Total		(in thousands)	SICAV GLI		SICAV GRE		GRP-CIP		REOF		Total
Assets (1)	Assets (1)													Assets (1)
Investments	Investments	$	8,266	$	57,354	$	59,493	$	150	$	2,649	$	127,912	Investments	$	36,296	$	79,434	$	147	$	19,052	$	134,929
Due from brokers	Due from brokers	—		1,107		86		147		—		1,340		Due from brokers	11		—		27		—		38
Other assets	Other assets	42		214		740		—		593		1,589		Other assets	151		370		—		55		576
Total assets	Total assets	8,308		58,675		60,319		297		3,242		130,841		Total assets	36,458		79,804		174		19,107		135,543

Liabilities (1)	Liabilities (1)													Liabilities (1)
Due to brokers	Due to brokers	$	—	$	347	$	579	$	—	$	—	$	926	Due to brokers	$	11	$	—	$	—	$	—	$	11
Other liabilities and accrued expenses	Other liabilities and accrued expenses	35		126		108		5		415		689		Other liabilities and accrued expenses	91		214		5		354		664
Total liabilities	Total liabilities	35		473		687		5		415		1,615		Total liabilities	102		214		5		354		675

Net assets	Net assets	$	8,273	$	58,202	$	59,632	$	292	$	2,827	$	129,226	Net assets	$	36,356	$	79,590	$	169	$	18,753	$	134,868

Attributable to the Company	Attributable to the Company	$	8,261	$	15,355	$	13,348	$	292	$	2,827	$	40,083	Attributable to the Company	$	19,116	$	11,495	$	169	$	14,699	$	45,479
Attributable to redeemable non-controlling interests		12		42,847		46,284		—		—		89,143
Attributable to noncontrolling interests														Attributable to noncontrolling interests	17,240		68,095		—		4,054		89,389
Net assets	Net assets	$	8,273	$	58,202	$	59,632	$	292	$	2,827	$	129,226	Net assets	$	36,356	$	79,590	$	169	$	18,753	$	134,868

_________________________

1312

COHEN & STEERS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

5. Fair Value

Accounting Standards Codification Topic 820, Fair Value Measurement (ASC 820) specifies a hierarchy of valuation classifications based on whether the inputs to the valuation techniques used in each valuation classification are observable or unobservable. These classifications are summarized in the three broad levels listed below:

•Level 1—Unadjusted quoted prices for identical instruments in active markets.

•Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable.

•Level 3—Valuations derived from valuation techniques in which significant inputs or significant value drivers are unobservable.

Inputs used to measure fair value might fall in different levels of the fair value hierarchy, in which case the Company defaults to the lowest level input that is significant to the fair value measurement in its entirety. These levels are not necessarily an indication of the risk or liquidity associated with the investments.

The following tables present fair value measurements:


		June 30, 2022								March 31, 2023
(in thousands)	(in thousands)	Level 1		Level 2		Level 3		Investments Measured at NAV (1)			Total		(in thousands)	Level 1		Level 2		Level 3		Investments Measured at NAV (1)		Total
Cash equivalents	Cash equivalents	$	62,022	$	—	$	—	$	—		$	62,022	Cash equivalents	$	114,710	$	—	$	—	$	—	$	114,710
Equity investments at fair value:	Equity investments at fair value:												Equity investments at fair value:
Common stocks	Common stocks	$	205,601	$	408	$	—	$	—		$	206,009	Common stocks	$	146,172	$	856	$	—	$	—	$	147,028
Company-sponsored funds		184		—		—		—			184
Limited partnership interests	Limited partnership interests	—		—		18,592		1,813			20,405		Limited partnership interests	—		—		13,633		1,622		15,255
Master limited partnership interests	Master limited partnership interests	1,092		—		—		—			1,092		Master limited partnership interests	302		—		—		—		302
Preferred securities	Preferred securities	1,285		—		—		—			1,285		Preferred securities	1,213		129		—		—		1,342
Other	Other	—		—		—		128			128		Other	204		—		—		124		328
Total	Total	$	208,162	$	408	$	18,592	$	1,941		$	229,103	Total	$	147,891	$	985	$	13,633	$	1,746	$	164,255
Trading investments:	Trading investments:												Trading investments:
Fixed income	Fixed income	$	—	$	79,308	$	—	$	—		$	79,308	Fixed income	$	—	$	47,077	$	—	$	—	$	47,077

Equity method investments	Equity method investments	$	—	$	—	$	—	$	21		$	21	Equity method investments	$	—	$	—	$	—	$	20	$	20

Total investments	Total investments	$	208,162	$	79,716	$	18,592	$	1,962		$	308,432	Total investments	$	147,891	$	48,062	$	13,633	$	1,766	$	211,352

Derivatives - assets:	Derivatives - assets:												Derivatives - assets:
Total return swaps - commodities		$	—	$	234	$	—	$	—		$	234
Total return swaps - equities		—		2,317		—		—			2,317

Total return swaps													Total return swaps	$	—	$	505	$	—	$	—	$	505

Forward contracts - foreign exchange	Forward contracts - foreign exchange	—		596		—		—			596		Forward contracts - foreign exchange	—		132		—		—		132
Total	Total	$	—	$	3,147	$	—	$	—		$	3,147	Total	$	—	$	637	$	—	$	—	$	637
Derivatives - liabilities:	Derivatives - liabilities:												Derivatives - liabilities:
Total return swaps - commodities (2)		$	—	$	3,245	$	—	$	—		$	3,245
Total return swaps - equities		—		177		—		—			177
Total return swaps													Total return swaps	$	—	$	894	$	—	$	—	$	894

Forward contracts - foreign exchange													Forward contracts - foreign exchange	—		443		—		—		443
Total	Total	$	—	$	3,422	$	—	$	—		$	3,422	Total	$	—	$	1,337	$	—	$	—	$	1,337

________________________

(1) Comprised of certain investments measured at fair value using net asset value (NAV) as a practical expedient.

~~(2) Included total return swaps - commodities held by consolidated investment vehicles.~~

1413

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)


		December 31, 2021											December 31, 2022
(in thousands)	(in thousands)	Level 1		Level 2		Level 3		Investments Measured at NAV (1)		Total		(in thousands)	Level 1		Level 2		Level 3		Investments Measured at NAV (1)		Total
Cash equivalents	Cash equivalents	$	104,591	$	—	$	—	$	—	$	104,591	Cash equivalents	$	208,557	$	—	$	—	$	—	$	208,557
Equity investments at fair value:	Equity investments at fair value:											Equity investments at fair value:
Common stocks	Common stocks	$	126,301	$	116	$	—	$	—	$	126,417	Common stocks	$	142,268	$	987	$	—	$	—	$	143,255
Limited partnership interests	Limited partnership interests	—		—		—		1,816		1,816		Limited partnership interests	—		—		10,759		1,544		12,303
Master limited partnership interests	Master limited partnership interests	986		—		—		—		986		Master limited partnership interests	316		—		—		—		316
Preferred securities	Preferred securities	1,465		—		—		—		1,465		Preferred securities	1,391		49		—		—		1,440
Other	Other	103		—		—		143		246		Other	200		—		—		132		332
Total	Total	$	128,855	$	116	$	—	$	1,959	$	130,930	Total	$	144,175	$	1,036	$	10,759	$	1,676	$	157,646
Trading investments:	Trading investments:											Trading investments:
Fixed income	Fixed income	$	—	$	23,711	$	—	$	—	$	23,711	Fixed income	$	—	$	15,289	$	—	$	—	$	15,289

Equity method investments	Equity method investments	$	—	$	—	$	—	$	13	$	13	Equity method investments	$	—	$	—	$	—	$	20	$	20

Total investments	Total investments	$	128,855	$	23,827	$	—	$	1,972	$	154,654	Total investments	$	144,175	$	16,325	$	10,759	$	1,696	$	172,955

Derivatives - assets:	Derivatives - assets:											Derivatives - assets:
Total return swaps - commodities (2)		$	—	$	481	$	—	$	—	$	481
Total return swaps												Total return swaps	$	—	$	276	$	—	$	—	$	276

Total												Total	$	—	$	276	$	—	$	—	$	276
Derivatives - liabilities:												Derivatives - liabilities:
Total return swaps												Total return swaps	$	—	$	717	$	—	$	—	$	717

Forward contracts - foreign exchange	Forward contracts - foreign exchange	—		209		—		—		209		Forward contracts - foreign exchange	—		742		—		—		742
Total	Total	$	—	$	690	$	—	$	—	$	690	Total	$	—	$	1,459	$	—	$	—	$	1,459
Derivatives - liabilities:
Total return swaps - commodities		$	—	$	17	$	—	$	—	$	17
Total return swaps - equities		—		867		—		—		867
Forward contracts - foreign exchange		—		3		—		—		3
Total		$	—	$	887	$	—	$	—	$	887

________________________

(1) Comprised of certain investments measured at fair value using NAV as a practical expedient.

~~(2) Included total return swaps - commodities held by consolidated investment vehicles.~~

Equity investments at fair value classified as Level 2 were comprised of common stocks for which quoted prices in active markets are not available. Fair values for the common stocks classified as Level 2 were generally based on quoted prices for similar instruments in active markets.

Equity investments at fair value classified as Level 3 ~~as of June 30, 2022~~ were comprised of a limited partnership ~~interest~~interests in a joint ~~venture~~ventures that ~~holds an investment~~hold investments in private real estate.

Trading investments classified as Level 2 were comprised of U.S. Treasury securities and corporate debt securities. ~~The fair value amounts~~Fair values were generally determined using third-party pricing services. The pricing services may utilize evaluated pricing models that vary by asset class and incorporate available trade, bid and other market information.

Investments measured at NAV were comprised of certain investments measured at fair value using NAV (or its equivalent) as a practical expedient as follows:

•Equity investments at fair value included:

◦limited partnership interests in private real estate funds; and

◦the Company's co-investment in a Cayman trust invested in global listed infrastructure securities (which is included in "Other" in the leveling table).

•Equity method investments included the Company's partnership interests in Cohen & Steers Global Realty Partners III-TE, L.P. (GRP-TE) and Cohen & Steers Global Listed Infrastructure Fund L.P. (LPGI). GRP-TE invests in non-registered real estate funds and LPGI invests in global infrastructure securities. The Company's ownership interest in GRP-TE was approximately 0.2% at March 31, 2023 and December 31, 2022. The Company's ownership interest in LPGI was approximately 0.01% at March 31, 2023 and December 31, 2022.

1514

COHEN & STEERS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

•Equity method investments included the Company's partnership interests in Cohen & Steers Global Realty Partners III-TE, L.P. (GRP-TE) which invests in non-registered real estate funds and Cohen & Steers Global Listed Infrastructure Fund L.P. (LPGI) which invests in global infrastructure securities. The Company's ownership interest was approximately 0.2% and 0.01%, respectively.

At ~~June 30, 2022~~March 31, 2023 and December 31, ~~2021,~~2022, the Company did not have the ability to redeem its limited partnership interests in private real estate funds or its interest in GRP-TE. There were no contractual restrictions on the Company's ability to redeem its interest in the Cayman trust or LPGI.

Investments measured at NAV as a practical expedient have not been classified in the fair value hierarchy. The amounts presented in the above tables are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the condensed consolidated statements of financial condition.

~~Swap~~Total return swap contracts classified as Level 2 were valued based on the underlying futures contracts or equity indices.

Foreign currency exchange contracts classified as Level 2 were valued based on the prevailing forward exchange rate, which is an input that is observable in active markets.

The following table summarizes the changes in Level 3 investments measured at fair value on a recurring basis:


		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended March 31,
(in thousands)	(in thousands)	2022		2021		2022		2021		(in thousands)	2023		2022
Balance at beginning of period	Balance at beginning of period	$	17,753	$	—	$	—	$	—	Balance at beginning of period	$	10,759	$	—
Purchases/contributions	Purchases/contributions	—		—		19,380		—		Purchases/contributions	2,892		19,380

Unrealized gains (losses)	Unrealized gains (losses)	839		—		(788)		—		Unrealized gains (losses)	(18)		(1,627)

Balance at end of period	Balance at end of period	$	18,592	$	—	$	18,592	$	—	Balance at end of period	$	13,633	$	17,753

~~Realized and unrealized~~Unrealized gains (losses) and realized gains (losses), if any, in the above table were recorded in gain (loss) from investments—net in the Company's condensed consolidated statements of operations.

Valuation Techniques

In certain instances, debt and equity securities are valued on the basis of prices from an orderly transaction between market participants provided by reputable broker-dealers or independent pricing services. In determining the value of a particular investment, independent pricing services may use information with respect to transactions in such investments, broker quotes, pricing matrices, market transactions in comparable investments and various relationships between investments. As part of its independent price verification process, the Company generally performs reviews of valuations provided by broker-dealers or independent pricing services. Investments in funds are valued at their closing price or NAV (or its equivalent) as a practical expedient.

In the absence of observable market prices, the Company values its investments using valuation methodologies applied on a consistent basis. For some investments, little market activity may exist; management's determination of fair value is then based on the best information available in the circumstances, and may incorporate management's own assumptions and involve a significant degree of judgment, taking into consideration a combination of internal and external factors. Such investments are valued no less than on a quarterly basis, taking into consideration any changes in key inputs and changes in economic and other relevant conditions, and valuation models are updated accordingly. The Company has established a valuation committee, comprised of senior members from various departments within the Company, to administer, implement and oversee the valuation policies and procedures. Additionally, the Company has retained an independent valuation services firm to assist in the determination of the fair value of certain private real estate investments. The valuation process also includes a review and approval by a committee which is comprised of senior members from various departments within the Company (Valuation Committee). The Valuation Committee provides independent oversight of the valuation policies and procedures.

~~COHEN & STEERS, INC. AND SUBSIDIARIES~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)~~

~~(UNAUDITED)~~

The following table summarizes the valuation techniques and significant unobservable inputs approved by the Valuation Committee for Level 3 investments measured at fair value on a recurring basis:

Fair Value
as of March 31, 2023

(in thousands)

Valuation Technique

Unobservable Inputs

Value ~~/ Range~~

Limited partnership ~~interests~~interest

$~~18,592~~

11,489

Discounted cash flow

Discount rate
Terminal capitalization rate

~~8.25%~~8.75%

7.25%

Limited partnership interest

2,144

Transaction price

n/a

13,633

COHEN & STEERS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

Fair Value as of December 31, 2022

(in thousands)

Valuation Technique

Unobservable Inputs

Value

Limited partnership interest

10,759

Discounted cash flow

Discount rate
Terminal capitalization rate

8.75%

7.25%

Changes in the significant unobservable inputs in the above tables may result in a materially higher or lower fair value measurement.

6. Derivatives

The following tables summarize the notional amount and fair value of the outstanding derivative financial instruments, none of which were designated in a formal hedging relationship:
As of June 30, 2022
Notional Amount
Fair Value (1)
(in thousands) Long Short Assets Liabilities
Corporate derivatives:
Total return swaps - commodities $ 2,607 $ 3,806 $ 234 $ 369
Total return swaps - equities — 22,492 2,317 177
Forward contracts - foreign exchange — 11,481 596 —
Total corporate derivatives $ 2,607 $ 37,779 $ 3,147 $ 546
Derivatives held by consolidated investment vehicles:
Total return swaps - commodities 20,918 — — 2,876
Total $ 23,525 $ 37,779 $ 3,147 $ 3,422


	As of March 31, 2023
	Notional Amount				Fair Value (1)
(in thousands)	Long		Short		Assets		Liabilities
Corporate derivatives:



Total return swaps	$	2,275	$	40,520	$	505	$	894
Forward contracts - foreign exchange	—		16,382		132		443
Total corporate derivatives	$	2,275	$	56,902	$	637	$	1,337

As of December 31, 2021
Notional Amount
Fair Value (1)
(in thousands) Long Short Assets Liabilities
Corporate derivatives:
Total return swaps - commodities $ 2,549 $ 3,810 $ 94 $ 17
Total return swaps - equities — 22,899 — 867
Forward contracts - foreign exchange — 11,969 209 3
Total corporate derivatives $ 2,549 $ 38,678 $ 303 $ 887
Derivatives held by consolidated investment vehicles:
Total return swaps - commodities 10,931 — 387 —
Total $ 13,480 $ 38,678 $ 690 $ 887


	As of December 31, 2022
	Notional Amount				Fair Value (1)
(in thousands)	Long		Short		Assets		Liabilities
Corporate derivatives:



Total return swaps	$	2,340	$	33,637	$	276	$	717
Forward contracts - foreign exchange	—		9,810		—		742
Total corporate derivatives	$	2,340	$	43,447	$	276	$	1,459

________________________

(1)The fair value of derivative financial instruments is recorded in other assets and other liabilities and accrued expenses on the Company's condensed consolidated statements of financial condition.

The Company's corporate derivatives include:

•Total return ~~equity and commodity swap contracts~~swaps which are utilized to economically hedge a portion of the market risk of certain seed investments and to gain exposure ~~in the commodities market~~ for the purpose of establishing a performance track record; and

•Forward foreign exchange contracts which are utilized to economically hedge currency exposure arising from certain non-U.S. dollar investment advisory fees.

~~Non-corporate~~For corporate derivatives, ~~are comprised~~cash included in due from brokers on the condensed consolidated statements of ~~commodity~~financial condition of $1.8 million and $2.0 million at March 31, 2023 and December 31, 2022, respectively, and U.S. Treasury securities included in investments of $0.2 million at December 31, 2022, were held as collateral for forward and swap ~~contracts that are utilized by certain~~contracts. At March 31, 2023, due to brokers included $0.4 million of ~~the consolidated investment vehicles~~cash collateral payable to ~~gain exposure in the commodities market as part of the vehicles' investment strategies.~~trade counterparties.

1716

COHEN & STEERS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

For corporate derivatives, cash included in due from brokers on the condensed consolidated statements of financial condition of $1.7 million and $2.2 million at June 30, 2022 and December 31, 2021, respectively, and U.S. Treasury securities included in investments of $0.2 million at December 31, 2021, were held as collateral for forward and swap contracts. At June 30, 2022, due to brokers included $1.9 million of cash collateral payable to trade counterparties.

For non-corporate derivatives, due from brokers included $2.1 million of cash collateral due from trade counterparties at June 30, 2022. At December 31, 2021, due to brokers included $0.5 million of cash collateral payable to trade counterparties.

The following table summarizes net gains (losses) from derivative financial instruments:
Three Months Ended
June 30, Six Months Ended
June 30,
(in thousands) 2022 2021 2022 2021
Corporate derivatives:
Futures - commodities $ — $ 1,463 $ — $ 2,168
Total return swaps - commodities 92 (1,335) (215) (1,993)
Total return swaps - equities 3,177 (1,440) 3,403 (2,508)
Forward contracts - foreign exchange (420) (657) 390 477
Total corporate derivatives $ 2,849 $ (1,969) $ 3,578 $ (1,856)
Derivatives held by consolidated investment vehicles:
Total return swaps - commodities (1,152) 1,193 3,160 1,072
Total (1)
$ 1,697 $ (776) $ 6,738 $ (784)


	Three Months Ended March 31,
(in thousands)	2023		2022
Corporate derivatives:




Total return swaps	$	(652)	$	(81)
Forward contracts - foreign exchange	431		810
Total corporate derivatives	$	(221)	$	729
Derivatives held by consolidated investment vehicles (1):
Total return swaps	—		4,312
Total (2)	$	(221)	$	5,041

________________________

(1)The Company deconsolidated the investment vehicle that held derivatives during the third quarter of 2022.

(2)Gains and losses on ~~futures and~~ total return ~~swap contracts~~swaps are included in gain (loss) from investments—net in the Company's condensed consolidated statements of operations. Gains and losses on forward foreign exchange contracts are included in foreign currency gain (loss)—net in the Company's condensed consolidated statements of operations.

7. Earnings Per Share

Basic earnings per share is calculated by dividing net income attributable to common stockholders by the weighted average shares outstanding. Diluted earnings per share is calculated by dividing net income attributable to common stockholders by the total weighted average shares of common stock outstanding and common stock equivalents determined using the treasury stock method. Common stock equivalents are comprised of dilutive potential shares from restricted stock unit awards and are excluded from the computation if their effect is anti-dilutive.

The following table reconciles income and share data used in the basic and diluted earnings per share computations:


		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended March 31,
(in thousands, except per share data)	(in thousands, except per share data)	2022		2021		2022		2021		(in thousands, except per share data)	2023		2022
Net income	Net income	$	26,149	$	52,406	$	72,990	$	104,836	Net income	$	36,298	$	46,841
Net (income) loss attributable to redeemable noncontrolling interests		25,807		(5,827)		20,984		(9,405)
Net (income) loss attributable to noncontrolling interests										Net (income) loss attributable to noncontrolling interests	(984)		(4,823)
Net income attributable to common stockholders	Net income attributable to common stockholders	$	51,956	$	46,579	$	93,974	$	95,431	Net income attributable to common stockholders	$	35,314	$	42,018
Basic weighted average shares outstanding	Basic weighted average shares outstanding	48,805		48,285		48,739		48,216		Basic weighted average shares outstanding	49,199		48,673
Dilutive potential shares from restricted stock units	Dilutive potential shares from restricted stock units	403		666		533		615		Dilutive potential shares from restricted stock units	203		664
Diluted weighted average shares outstanding	Diluted weighted average shares outstanding	49,208		48,951		49,272		48,831		Diluted weighted average shares outstanding	49,402		49,337

Basic earnings per share attributable to common stockholders	Basic earnings per share attributable to common stockholders	$	1.06	$	0.96	$	1.93	$	1.98	Basic earnings per share attributable to common stockholders	$	0.72	$	0.86
Diluted earnings per share attributable to common stockholders	Diluted earnings per share attributable to common stockholders	$	1.06	$	0.95	$	1.91	$	1.95	Diluted earnings per share attributable to common stockholders	$	0.71	$	0.85

Anti-dilutive common stock equivalents excluded from the calculation	Anti-dilutive common stock equivalents excluded from the calculation	2		—		2		—		Anti-dilutive common stock equivalents excluded from the calculation	66		2

1817

COHEN & STEERS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

8. Income Taxes

The provision for income taxes included U.S. federal, state, local and foreign taxes. A reconciliation of the Company’s statutory federal income tax rate and the effective income tax rate is summarized in the following table:


		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended March 31,
		2022		2021		2022		2021			2023		2022
U.S. statutory tax rate	U.S. statutory tax rate	21.0	%	21.0	%	21.0	%	21.0	%	U.S. statutory tax rate	21.0	%	21.0	%
State and local income taxes, net of federal benefit	State and local income taxes, net of federal benefit	3.1		3.9		3.1		3.9		State and local income taxes, net of federal benefit	3.1		3.5
Non-deductible executive compensation	Non-deductible executive compensation	1.6		1.7		3.3		2.2		Non-deductible executive compensation	3.0		5.2
Unrecognized tax benefit adjustments										Unrecognized tax benefit adjustments	0.2		—
Excess tax benefits related to the vesting and delivery of restricted stock units	Excess tax benefits related to the vesting and delivery of restricted stock units	0.2		(0.1)		(5.1)		(4.8)		Excess tax benefits related to the vesting and delivery of restricted stock units	(4.6)		(11.5)
Unrecognized tax benefit adjustments		(10.1)		0.4		(5.5)		(4.4)
Other	Other	0.1		(1.5)		0.1		(0.4)		Other	(0.2)		(0.1)
Effective income tax rate	Effective income tax rate	15.9	%	25.4	%	16.9	%	17.5	%	Effective income tax rate	22.5	%	18.1	%

9. Related Party Transactions

The Company is an investment adviser to, and has administration agreements with, Company-sponsored funds and investment products for which certain employees are officers and/or directors.

The following table summarizes the amount of revenue the Company earned from these affiliated funds:


		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended March 31,
(in thousands)	(in thousands)	2022		2021		2022		2021		(in thousands)	2023		2022
Investment advisory and administration fees (1)	Investment advisory and administration fees (1)	$	100,803	$	95,542	$	205,040	$	180,190	Investment advisory and administration fees (1)	$	85,499	$	104,237
Distribution and service fees	Distribution and service fees	9,005		9,199		18,874		17,471		Distribution and service fees	7,562		9,869
Total	Total	$	109,808	$	104,741	$	223,914	$	197,661	Total	$	93,061	$	114,106

_________________________

(1) Investment advisory and administration fees are reflected net of fund reimbursements of ~~$4.3~~$4.6 million and ~~$3.7~~$4.4 million for the three months ended ~~June 30,~~March 31, 2023 and 2022, ~~and 2021, respectively, and $8.6 million and $7.2 million for the six months ended June 30, 2022 and 2021,~~ respectively.

Included in accounts receivable at ~~June 30, 2022~~March 31, 2023 and December 31, ~~2021~~2022 are receivables due from Company-sponsored ~~funds~~vehicles of ~~$35.8~~$37.8 million and ~~$40.8~~$36.4 million, respectively. Included in accounts payable at ~~June 30, 2022~~March 31, 2023 and December 31, ~~2021~~2022 are payables due to Company-sponsored ~~funds~~vehicles of ~~$0.5~~$0.2 million and ~~$1.1~~$1.0 million, respectively.

See discussion of commitments to Company-sponsored vehicles in Note 11.

10. Credit Agreement

On January 20, 2023, the Company entered into a Credit Agreement providing for a $100.0 million senior unsecured revolving credit facility maturing on January 20, 2026. Borrowings under the Credit Agreement bear interest at a variable annual rate equal to, at the Company’s option, either, (i) in respect of Term SOFR Loans (as defined in the Credit Agreement), a rate equal to Term SOFR (as defined in the Credit Agreement) in effect for such period plus an applicable rate as determined according to a performance pricing grid and, (ii) in respect of Base Rate Loans (as defined in the Credit Agreement), a rate equal to a Base Rate (as defined in the Credit Agreement) plus an applicable rate as determined according to a performance pricing grid. The Company is also required to pay a commitment fee determined according to a performance pricing grid and based on the actual daily unused amount of the Credit Agreement payable quarterly.

Borrowings under the Credit Agreement may be used for working capital and other general corporate purposes. The Credit Agreement contains affirmative, negative and financial covenants, which are customary for facilities of this type, including with respect to leverage and interest coverage, limitations on priority indebtedness, asset dispositions and fundamental corporate changes. As of March 31, 2023, the Company was in compliance with these covenants.

As of March 31, 2023, the Company had not drawn upon the credit agreement.

COHEN & STEERS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(UNAUDITED)

11. Commitments and Contingencies

From time to time, the Company is involved in legal matters relating to claims arising in the ordinary course of business. There are currently no such matters pending that the Company believes could have a material adverse effect on its ~~condensed~~ consolidated results of operations, cash flows or financial position.

The Company has committed to invest up to $50.0 million in REOF. As of ~~June 30, 2022,~~March 31, 2023, the Company had funded ~~$21.2~~$22.7 million of this commitment. In addition, the Company has committed to invest up to $125.0 million in Cohen & Steers Income Opportunities REIT, Inc. (CNSREIT). As of March 31, 2023, the Company had funded $0.2 million of this commitment to enable CNSREIT to capitalize a share class in preparation for an offering. The timing for funding the remaining portion of the Company's ~~commitment~~commitments is determined by the ~~fund.~~

investment vehicles.

~~COHEN & STEERS, INC. AND SUBSIDIARIES~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)~~

~~(UNAUDITED)~~

~~11.~~12. Concentration of Credit Risk

The Company's cash and cash equivalents are principally on deposit with ~~major~~highly rated national financial ~~institutions. The Company is~~institutions and are subject to credit risk should these financial institutions be unable to fulfill their obligations.

The Company limits its exposure to such credit risks by diversifying its cash and cash equivalents among several highly rated national financial institutions.

~~12.~~

13. Subsequent Events

The Company has evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date the condensed consolidated financial statements were issued. Other than the items described below, the Company determined that there were no additional subsequent events that require disclosure and/or adjustment.

On ~~August~~May 4, ~~2022,~~2023, the Company declared a quarterly dividend on its common stock in the amount of ~~$0.55 p~~er$0.57 per share. ~~Thi~~sThis dividend will be payable on ~~August~~May 25, ~~2022~~2023 to stockholders of record at the close of business on ~~August~~May 15, ~~2022.~~2023.

2019

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Set forth on the following pages is management's discussion and analysis of our financial condition and results of operations for the three ~~and six~~ months ended ~~June 30, 2022~~March 31, 2023 and ~~2021.~~2022. Such information should be read in conjunction with our condensed consolidated financial statements and the related notes included herein. The condensed consolidated financial statements of the Company are unaudited. When we use the terms "Cohen & Steers," the "Company," "we," "us," and "our," we mean Cohen & Steers, Inc., a Delaware corporation, and its consolidated subsidiaries.

Executive Overview

General

We are a global investment manager specializing in real assets and alternative income, including real estate, preferred securities, infrastructure, resource equities, commodities, as well as multi-strategy solutions. Founded in 1986, we are headquartered in New York City, with offices in London, Dublin, Hong Kong, Tokyo and ~~Tokyo.~~Singapore.

Our primary investment strategies include U.S. real estate, preferred securities and low duration preferred securities, global/international real estate, global listed infrastructure, real assets multi-strategy, ~~midstream energy and MLPs,~~ as well as global natural resource equities. Our strategies seek to achieve a variety of investment objectives for different risk profiles and are actively managed by specialist teams of investment professionals who employ fundamental-driven research and portfolio management processes. We offer our strategies through a variety of investment vehicles, including U.S. and non-U.S. registered funds and other commingled vehicles, separate accounts and subadvised portfolios.

Our distribution network encompasses two major channels, wealth and institutional. Our wealth channel includes registered investment advisers, wirehouses, independent and regional broker dealers and bank trusts. Our institutional channel includes sovereign wealth funds, corporate plans, insurance companies and public funds, including defined benefit and defined contribution plans, as well as other financial institutions that access our investment management services directly or through consultants and other intermediaries.

Our revenue from the wealth channel is primarily derived from investment advisory, administration, distribution and service fees from open-end and closed-end ~~funds.~~funds as well as other commingled vehicles. Our revenue from the institutional channel is derived from fees received from our clients for managing advised and subadvised accounts. Our fees are based on contractually specified rates applied to the value of the assets we manage and, in certain cases, may include a performance-based fee. Our revenue fluctuates with changes in the total value of our assets under management, which may occur as a result of market appreciation and depreciation, contributions or withdrawals from investor accounts and distributions. This revenue is recognized over the period that the assets are managed.

~~The Russian invasion~~Market Environment

There was elevated financial market volatility in the first quarter of ~~Ukraine~~2023, which has ~~impacted global financial markets, introducing new threats to global economic growth~~continued into the second quarter of 2023, resulting primarily from several bank failures both in the U.S. and ~~adding to inflationary pressures. We~~abroad. Although these events did not have taken measures to ensure ongoing compliance with all applicable sanctions and guidance issued by authorities globally against certain regions, entities, or individuals. Our overall exposure to Russian and Ukrainian securities is limited and we do not expect a material effect on our business, the outcome remains uncertain and could impact to our future assets under management and financial results.

2120

Assets Under Management

By Investment Vehicle

(in millions)


		Three Months Ended June 30,						Six Months Ended June 30,							Three Months Ended March 31,
		2022			2021			2022			2021				2023			2022
Open-end Funds	Open-end Funds													Open-end Funds
Assets under management, beginning of period	Assets under management, beginning of period	$	48,105		$	38,623		$	50,911		$	35,160		Assets under management, beginning of period	$	36,903		$	50,911
Inflows	Inflows	4,859			4,577			9,745			9,647			Inflows	3,474			4,886
Outflows	Outflows	(5,103)			(2,490)			(9,781)			(5,396)			Outflows	(3,779)			(4,678)
Net inflows (outflows)	Net inflows (outflows)	(244)			2,087			(36)			4,251			Net inflows (outflows)	(305)			208
Market appreciation (depreciation)	Market appreciation (depreciation)	(5,654)			3,134			(8,389)			4,671			Market appreciation (depreciation)	110			(2,735)
Distributions	Distributions	(624)			(312)			(903)			(550)			Distributions	(281)			(279)

Total increase (decrease)	Total increase (decrease)	(6,522)			4,909			(9,328)			8,372			Total increase (decrease)	(476)			(2,806)
Assets under management, end of period	Assets under management, end of period	$	41,583		$	43,532		$	41,583		$	43,532		Assets under management, end of period	$	36,427		$	48,105
Percentage of total assets under management	Percentage of total assets under management	47.3		%	45.2		%	47.3		%	45.2		%	Percentage of total assets under management	45.6		%	47.1		%
Average assets under management	Average assets under management	$	45,188		$	41,469		$	46,602		$	39,064		Average assets under management	$	38,440		$	48,055

Institutional Accounts	Institutional Accounts													Institutional Accounts
Assets under management, beginning of period	Assets under management, beginning of period	$	40,956		$	36,538		$	42,727		$	33,255		Assets under management, beginning of period	$	32,373		$	42,727
Inflows	Inflows	1,259			1,826			3,319			4,161			Inflows	715			2,060
Outflows	Outflows	(1,734)			(1,454)			(3,800)			(2,202)			Outflows	(833)			(2,066)
Net inflows (outflows)	Net inflows (outflows)	(475)			372			(481)			1,959			Net inflows (outflows)	(118)			(6)
Market appreciation (depreciation)	Market appreciation (depreciation)	(5,733)			3,555			(7,227)			5,555			Market appreciation (depreciation)	608			(1,494)
Distributions	Distributions	(242)			(309)			(513)			(613)			Distributions	(259)			(271)

Total increase (decrease)	Total increase (decrease)	(6,450)			3,618			(8,221)			6,901			Total increase (decrease)	231			(1,771)
Assets under management, end of period	Assets under management, end of period	$	34,506		$	40,156		$	34,506		$	40,156		Assets under management, end of period	$	32,604		$	40,956
Percentage of total assets under management	Percentage of total assets under management	39.3		%	41.7		%	39.3		%	41.7		%	Percentage of total assets under management	40.8		%	40.1		%
Average assets under management	Average assets under management	$	37,506		$	39,103		$	39,048		$	36,877		Average assets under management	$	33,409		$	40,631

Closed-end Funds	Closed-end Funds													Closed-end Funds
Assets under management, beginning of period	Assets under management, beginning of period	$	13,061		$	11,879		$	12,991		$	11,493		Assets under management, beginning of period	$	11,149		$	12,991
Inflows	Inflows	2			103			556			168			Inflows	11			554
Outflows	Outflows	—			—			—			—			Outflows	(85)			—
Net inflows (outflows)	Net inflows (outflows)	2			103			556			168			Net inflows (outflows)	(74)			554
Market appreciation (depreciation)	Market appreciation (depreciation)	(1,137)			703			(1,474)			1,172			Market appreciation (depreciation)	(47)			(337)
Distributions	Distributions	(153)			(148)			(300)			(296)			Distributions	(154)			(147)
Total increase (decrease)	Total increase (decrease)	(1,288)			658			(1,218)			1,044			Total increase (decrease)	(275)			70
Assets under management, end of period	Assets under management, end of period	$	11,773		$	12,537		$	11,773		$	12,537		Assets under management, end of period	$	10,874		$	13,061
Percentage of total assets under management	Percentage of total assets under management	13.4		%	13.0		%	13.4		%	13.0		%	Percentage of total assets under management	13.6		%	12.8		%
Average assets under management	Average assets under management	$	12,428		$	12,372		$	12,489		$	11,989		Average assets under management	$	11,353		$	12,550

Total	Total													Total
Assets under management, beginning of period	Assets under management, beginning of period	$	102,122		$	87,040		$	106,629		$	79,908		Assets under management, beginning of period	$	80,425		$	106,629
Inflows	Inflows	6,120			6,506			13,620			13,976			Inflows	4,200			7,500
Outflows	Outflows	(6,837)			(3,944)			(13,581)			(7,598)			Outflows	(4,697)			(6,744)
Net inflows (outflows)	Net inflows (outflows)	(717)			2,562			39			6,378			Net inflows (outflows)	(497)			756
Market appreciation (depreciation)	Market appreciation (depreciation)	(12,524)			7,392			(17,090)			11,398			Market appreciation (depreciation)	671			(4,566)
Distributions	Distributions	(1,019)			(769)			(1,716)			(1,459)			Distributions	(694)			(697)

Total increase (decrease)	Total increase (decrease)	(14,260)			9,185			(18,767)			16,317			Total increase (decrease)	(520)			(4,507)
Assets under management, end of period	Assets under management, end of period	$	87,862		$	96,225		$	87,862		$	96,225		Assets under management, end of period	$	79,905		$	102,122
Average assets under management	Average assets under management	$	95,122		$	92,944		$	98,139		$	87,930		Average assets under management	$	83,202		$	101,236

Assets Under Management - Institutional Accounts

By Account Type

(in millions)


	Three Months Ended March 31,
	2023			2022
Advisory
Assets under management, beginning of period	$	18,631		$	24,599
Inflows	222			1,573
Outflows	(621)			(1,615)
Net inflows (outflows)	(399)			(42)
Market appreciation (depreciation)	258			(831)

Total increase (decrease)	(141)			(873)
Assets under management, end of period	$	18,490		$	23,726
Percentage of institutional assets under management	56.7		%	57.9		%
Average assets under management	$	19,123		$	23,861

Japan Subadvisory
Assets under management, beginning of period	$	8,376		$	11,329
Inflows	385			219
Outflows	(59)			(103)
Net inflows (outflows)	326			116
Market appreciation (depreciation)	270			(482)
Distributions	(259)			(271)

Total increase (decrease)	337			(637)
Assets under management, end of period	$	8,713		$	10,692
Percentage of institutional assets under management	26.7		%	26.1		%
Average assets under management	$	8,739		$	10,351

Subadvisory Excluding Japan
Assets under management, beginning of period	$	5,366		$	6,799
Inflows	108			268
Outflows	(153)			(348)
Net inflows (outflows)	(45)			(80)
Market appreciation (depreciation)	80			(181)

Total increase (decrease)	35			(261)
Assets under management, end of period	$	5,401		$	6,538
Percentage of institutional assets under management	16.6		%	16.0		%
Average assets under management	$	5,547		$	6,419

Total Institutional Accounts
Assets under management, beginning of period	$	32,373		$	42,727
Inflows	715			2,060
Outflows	(833)			(2,066)
Net inflows (outflows)	(118)			(6)
Market appreciation (depreciation)	608			(1,494)
Distributions	(259)			(271)


Total increase (decrease)	231			(1,771)
Assets under management, end of period	$	32,604		$	40,956
Average assets under management	$	33,409		$	40,631

Assets Under Management ~~- Institutional Accounts~~

By ~~Account Type~~Investment Strategy

(in millions)


		Three Months Ended June 30,						Six Months Ended June 30,							Three Months Ended March 31,
		2022			2021			2022			2021				2023			2022
Advisory
Assets under management, beginning of period		$	23,726		$	20,279		$	24,599		$	17,628
Inflows		769			1,512			2,342			3,449
Outflows		(1,177)			(493)			(2,792)			(736)
Net inflows (outflows)		(408)			1,019			(450)			2,713
Market appreciation (depreciation)		(3,183)			1,817			(4,014)			2,774

Total increase (decrease)		(3,591)			2,836			(4,464)			5,487
Assets under management, end of period		$	20,135		$	23,115		$	20,135		$	23,115
Percentage of institutional assets under management		58.4		%	57.6		%	58.4		%	57.6		%
Average assets under management		$	21,869		$	22,084		$	22,860		$	20,501

Japan Subadvisory
U.S. Real Estate														U.S. Real Estate
Assets under management, beginning of period	Assets under management, beginning of period	$	10,692		$	9,924		$	11,329		$	9,720		Assets under management, beginning of period	$	35,108		$	49,915
Inflows	Inflows	249			22			468			120			Inflows	2,033			3,293
Outflows	Outflows	(226)			(294)			(329)			(596)			Outflows	(1,599)			(2,736)
Net inflows (outflows)	Net inflows (outflows)	23			(272)			139			(476)			Net inflows (outflows)	434			557
Market appreciation (depreciation)	Market appreciation (depreciation)	(1,534)			1,160			(2,016)			1,872			Market appreciation (depreciation)	907			(2,792)
Distributions	Distributions	(242)			(309)			(513)			(613)			Distributions	(437)			(412)

Transfers														Transfers	68			—
Total increase (decrease)	Total increase (decrease)	(1,753)			579			(2,390)			783			Total increase (decrease)	972			(2,647)
Assets under management, end of period	Assets under management, end of period	$	8,939		$	10,503		$	8,939		$	10,503		Assets under management, end of period	$	36,080		$	47,268
Percentage of institutional assets under management		25.9		%	26.2		%	25.9		%	26.2		%
Percentage of total assets under management														Percentage of total assets under management	45.2		%	46.3		%
Average assets under management	Average assets under management	$	9,604		$	10,306		$	9,975		$	9,985		Average assets under management	$	36,772		$	46,462

Subadvisory Excluding Japan
Assets under management, beginning of period		$	6,538		$	6,335		$	6,799		$	5,907
Inflows		241			292			509			592
Outflows		(331)			(667)			(679)			(870)
Net inflows (outflows)		(90)			(375)			(170)			(278)
Market appreciation (depreciation)		(1,016)			578			(1,197)			909

Total increase (decrease)		(1,106)			203			(1,367)			631
Assets under management, end of period		$	5,432		$	6,538		$	5,432		$	6,538
Percentage of institutional assets under management		15.7		%	16.3		%	15.7		%	16.3		%
Average assets under management		$	6,033		$	6,713		$	6,213		$	6,391

Total Institutional Accounts
Preferred Securities														Preferred Securities
Assets under management, beginning of period	Assets under management, beginning of period	$	40,956		$	36,538		$	42,727		$	33,255		Assets under management, beginning of period	$	19,767		$	26,987
Inflows	Inflows	1,259			1,826			3,319			4,161			Inflows	1,454			1,964
Outflows	Outflows	(1,734)			(1,454)			(3,800)			(2,202)			Outflows	(2,326)			(2,872)
Net inflows (outflows)	Net inflows (outflows)	(475)			372			(481)			1,959			Net inflows (outflows)	(872)			(908)
Market appreciation (depreciation)	Market appreciation (depreciation)	(5,733)			3,555			(7,227)			5,555			Market appreciation (depreciation)	(492)			(1,400)
Distributions	Distributions	(242)			(309)			(513)			(613)			Distributions	(195)			(213)

Transfers														Transfers	2			—
Total increase (decrease)	Total increase (decrease)	(6,450)			3,618			(8,221)			6,901			Total increase (decrease)	(1,557)			(2,521)
Assets under management, end of period	Assets under management, end of period	$	34,506		$	40,156		$	34,506		$	40,156		Assets under management, end of period	$	18,210		$	24,466
Percentage of total assets under management														Percentage of total assets under management	22.8		%	24.0		%
Average assets under management	Average assets under management	$	37,506		$	39,103		$	39,048		$	36,877		Average assets under management	$	20,227		$	25,649

Global/International Real Estate														Global/International Real Estate
Assets under management, beginning of period														Assets under management, beginning of period	$	14,782		$	19,380
Inflows														Inflows	273			1,556
Outflows														Outflows	(417)			(780)
Net inflows (outflows)														Net inflows (outflows)	(144)			776
Market appreciation (depreciation)														Market appreciation (depreciation)	202			(775)
Distributions														Distributions	(8)			(19)
Transfers														Transfers	(70)			—
Total increase (decrease)														Total increase (decrease)	(20)			(18)
Assets under management, end of period														Assets under management, end of period	$	14,762		$	19,362
Percentage of total assets under management														Percentage of total assets under management	18.5		%	19.0		%
Average assets under management														Average assets under management	$	15,321		$	18,867

Assets Under Management

By Investment Strategy - continued

(in millions)
Three Months Ended
June 30, Six Months Ended
June 30,
2022 2021 2022 2021
U.S. Real Estate
Assets under management, beginning of period $ 47,268 $ 36,984 $ 49,915 $ 32,827
Inflows 2,582 2,592 5,875 5,718
Outflows (2,433) (1,723) (5,169) (3,114)
Net inflows (outflows) 149 869 706 2,604
Market appreciation (depreciation) (6,542) 4,419 (9,334) 7,256
Distributions (697) (407) (1,109) (822)
Total increase (decrease) (7,090) 4,881 (9,737) 9,038
Assets under management, end of period $ 40,178 $ 41,865 $ 40,178 $ 41,865
Percentage of total assets under management 45.7 % 43.5 % 45.7 % 43.5 %
Average assets under management $ 43,917 $ 40,269 $ 45,174 $ 37,408
Preferred Securities
Assets under management, beginning of period $ 24,466 $ 23,790 $ 26,987 $ 23,185
Inflows 1,711 2,254 3,675 4,660
Outflows (2,757) (1,081) (5,629) (2,677)
Net inflows (outflows) (1,046) 1,173 (1,954) 1,983
Market appreciation (depreciation) (1,769) 750 (3,169) 752
Distributions (202) (215) (415) (422)
Total increase (decrease) (3,017) 1,708 (5,538) 2,313
Assets under management, end of period $ 21,449 $ 25,498 $ 21,449 $ 25,498
Percentage of total assets under management 24.4 % 26.5 % 24.4 % 26.5 %
Average assets under management $ 22,915 $ 24,546 $ 24,272 $ 24,043
Global/International Real Estate
Assets under management, beginning of period $ 19,362 $ 16,421 $ 19,380 $ 15,214
Inflows 861 1,111 2,417 2,190
Outflows (1,164) (890) (1,944) (1,457)
Net inflows (outflows) (303) 221 473 733
Market appreciation (depreciation) (3,303) 1,664 (4,078) 2,373
Distributions (47) (86) (66) (100)
Total increase (decrease) (3,653) 1,799 (3,671) 3,006
Assets under management, end of period $ 15,709 $ 18,220 $ 15,709 $ 18,220
Percentage of total assets under management 17.9 % 18.9 % 17.9 % 18.9 %
Average assets under management $ 17,524 $ 17,697 $ 18,183 $ 16,660


	Three Months Ended March 31,
	2023			2022
Global Listed Infrastructure
Assets under management, beginning of period	$	8,596		$	8,763
Inflows	135			464
Outflows	(124)			(299)
Net inflows (outflows)	11			165
Market appreciation (depreciation)	35			314
Distributions	(46)			(45)
Total increase (decrease)	—			434
Assets under management, end of period	$	8,596		$	9,197
Percentage of total assets under management	10.8		%	9.0		%
Average assets under management	$	8,682		$	8,609

Other
Assets under management, beginning of period	$	2,172		$	1,584
Inflows	305			223
Outflows	(231)			(57)
Net inflows (outflows)	74			166
Market appreciation (depreciation)	19			87
Distributions	(8)			(8)

Total increase (decrease)	85			245
Assets under management, end of period	$	2,257		$	1,829
Percentage of total assets under management	2.8		%	1.8		%
Average assets under management	$	2,200		$	1,649

Total
Assets under management, beginning of period	$	80,425		$	106,629
Inflows	4,200			7,500
Outflows	(4,697)			(6,744)
Net inflows (outflows)	(497)			756
Market appreciation (depreciation)	671			(4,566)
Distributions	(694)			(697)

Total increase (decrease)	(520)			(4,507)
Assets under management, end of period	$	79,905		$	102,122
Average assets under management	$	83,202		$	101,236

~~Assets Under Management~~

~~By Investment Strategy - continued~~

~~(in millions)~~
Three Months Ended
June 30, Six Months Ended
June 30,
2022 2021 2022 2021
Global Listed Infrastructure
Assets under management, beginning of period $ 9,197 $ 7,604 $ 8,763 $ 6,729
Inflows 461 480 925 1,159
Outflows (353) (141) (652) (215)
Net inflows (outflows) 108 339 273 944
Market appreciation (depreciation) (673) 355 (359) 670
Distributions (58) (52) (103) (97)
Total increase (decrease) (623) 642 (189) 1,517
Assets under management, end of period $ 8,574 $ 8,246 $ 8,574 $ 8,246
Percentage of total assets under management 9.8 % 8.6 % 9.8 % 8.6 %
Average assets under management $ 8,853 $ 8,051 $ 8,729 $ 7,595
Other
Assets under management, beginning of period $ 1,829 $ 2,241 $ 1,584 $ 1,953
Inflows 505 69 728 249
Outflows (130) (109) (187) (135)
Net inflows (outflows) 375 (40) 541 114
Market appreciation (depreciation) (237) 204 (150) 347
Distributions (15) (9) (23) (18)
Total increase (decrease) 123 155 368 443
Assets under management, end of period $ 1,952 $ 2,396 $ 1,952 $ 2,396
Percentage of total assets under management 2.2 % 2.5 % 2.2 % 2.5 %
Average assets under management $ 1,913 $ 2,381 $ 1,781 $ 2,224
Total
Assets under management, beginning of period $ 102,122 $ 87,040 $ 106,629 $ 79,908
Inflows 6,120 6,506 13,620 13,976
Outflows (6,837) (3,944) (13,581) (7,598)
Net inflows (outflows) (717) 2,562 39 6,378
Market appreciation (depreciation) (12,524) 7,392 (17,090) 11,398
Distributions (1,019) (769) (1,716) (1,459)
Total increase (decrease) (14,260) 9,185 (18,767) 16,317
Assets under management, end of period $ 87,862 $ 96,225 $ 87,862 $ 96,225
Average assets under management $ 95,122 $ 92,944 $ 98,139 $ 87,930

Investment Performance at ~~June 30, 2022~~March 31, 2023

_________________________

(1) Past performance is no guarantee of future results. Outperformance is determined by comparing the annualized investment performance of each investment strategy to the performance of specified reference benchmarks. Investment performance in excess of the performance of the benchmark is considered outperformance. The investment performance calculation of each investment strategy is based on all active accounts and investment models pursuing similar investment objectives. For accounts, actual investment performance is measured gross of fees and net of withholding taxes. For investment models, for which actual investment performance does not exist, the investment performance of a composite of accounts pursuing comparable investment objectives is used as a proxy for actual investment performance. The performance of the specified reference benchmark for each account and investment model is measured net of withholding taxes, where applicable. This is not investment advice and may not be construed as sales or marketing material for any financial product or service sponsored or provided by Cohen & Steers.

(2) © ~~2022~~2023 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Morningstar calculates its ratings based on a risk-adjusted return measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive five stars, the next 22.5% receive four stars, the next 35% receive three stars, the next 22.5% receive two stars and the bottom 10% receive one star. Past performance is no guarantee of future results. Based on independent rating by Morningstar, Inc. of investment performance of each Cohen & Steers-sponsored open-end U.S.-registered mutual fund for all share classes for the overall period at ~~June 30, 2022.~~March 31, 2023. 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.

Overview

Assets under management at ~~June 30, 2022~~March 31, 2023 decreased ~~8.7%~~21.8% to ~~$87.9~~$79.9 billion from ~~$96.2~~$102.1 billion at ~~June 30, 2021.~~March 31, 2022. The decrease was due to net outflows of $2.9 billion, market depreciation of ~~$7.5~~$15.7 billion and distributions of ~~$4.0~~$3.6 billion. Net outflows included $3.1 billion from preferred securities, partially offset by net inflows of ~~$3.1 billion. Net inflows included $3.1 billion~~$729 million into ~~U.S.~~ real ~~estate.~~assets multi-strategy (included in "Other" in the table on pages 23 and 24). Market depreciation included $3.0 billion from preferred securities, $2.5 billion from global/international real estate and $2.2 billion from U.S. real estate, partially offset by market appreciation of $225 million from global listed infrastructure. Distributions included $2.6$8.4 billion from U.S. real estate and ~~$978~~$4.1 billion from global/international real estate. Distributions included $2.4 billion from U.S. real estate and $816 million from preferred securities. Our organic ~~growth~~decay rate for the twelve months ended ~~June 30, 2022~~March 31, 2023 was ~~3.2%~~(2.8%). The organic growth/decay rate represents the ratio of net flows for the period to the beginning assets under management.

Average assets under management for the three months ended ~~June 30, 2022 increased 2.3%~~March 31, 2023 decreased 17.8% to ~~$95.1~~$83.2 billion from ~~$92.9~~$101.2 billion for the three months ended ~~June 30, 2021.~~March 31, 2022.

2625

Open-end funds

Assets under management in open-end funds at ~~June 30, 2022,~~March 31, 2023, which represented ~~47.3%~~45.6% of total assets under management, decreased ~~4.5%~~24.3% to ~~$41.6~~$36.4 billion from ~~$43.5~~$48.1 billion at ~~June 30, 2021.~~March 31, 2022. The decrease was due to net outflows of $2.3 billion, market depreciation of ~~$4.1~~$7.4 billion and distributions of ~~$2.3~~$2.0 billion. Net outflows included $2.7 billion from preferred securities, partially offset by net inflows of ~~$4.5 billion. Net inflows included $3.3 billion into U.S. real estate and $708~~$706 million into real assets multi-strategy (included in "Other" in the table on pages 2523 and ~~26)~~24). Market depreciation included ~~$2.1 billion from preferred securities and $1.5 billion from U.S. real estate. Distributions included $1.4~~$5.0 billion from U.S. real estate and ~~$756~~$1.6 billion from preferred securities. Distributions included $1.2 billion from U.S. real estate and $591 million from preferred securities. Of these distributions, ~~$2.0~~$1.6 billion was reinvested and included in net ~~inflows.~~flows. Our organic ~~growth~~decay rate for open-end funds for the twelve months ended ~~June 30, 2022~~March 31, 2023 was ~~10.3%~~(4.8%).

Average assets under management for open-end funds for the three months ended ~~June 30, 2022 increased 9.0%~~March 31, 2023 decreased 20.0% to ~~$45.2~~$38.4 billion from ~~$41.5~~$48.1 billion for the three months ended ~~June 30, 2021.~~March 31, 2022.

Institutional accounts

Assets under management in institutional accounts at ~~June 30, 2022,~~March 31, 2023, which represented ~~39.3%~~40.8% of total assets under management, decreased ~~14.1%~~20.4% to ~~$34.5~~$32.6 billion from ~~$40.2~~$41.0 billion at ~~June 30, 2021.~~March 31, 2022. The decrease was due to net outflows of ~~$1.9 billion,~~$555 million, market depreciation of ~~$2.7~~$6.8 billion and distributions of ~~$1.1 billion.~~$974 million. Net outflows included ~~$1.1 billion from real assets multi-strategy (included in "Other" in the table on pages 24 and 25) and $589~~$378 million from ~~U.S.~~global/international real ~~estate.~~estate and $293 million from preferred securities, partially offset by net inflows of $168 million into global listed infrastructure. Market depreciation included ~~$2.0~~$3.4 billion from global/international real estate and ~~$467 million~~$2.8 billion from U.S. real estate. Distributions included ~~$1.0 billion~~$933 million from U.S. real estate. Our organic decay rate for institutional accounts for the twelve months ended ~~June 30, 2022~~March 31, 2023 was ~~(4.6%~~(1.4%).

Average assets under management for institutional accounts for the three months ended ~~June 30, 2022~~March 31, 2023 decreased ~~4.1%~~17.8% to ~~$37.5~~$33.4 billion from ~~$39.1~~$40.6 billion for the three months ended ~~June 30, 2021.~~March 31, 2022.

Assets under management in advisory accounts at ~~June 30, 2022,~~March 31, 2023, which represented ~~58.4%~~56.7% of institutional assets under management, decreased ~~12.9%~~22.1% to ~~$20.1~~$18.5 billion from ~~$23.1~~$23.7 billion at ~~June 30, 2021.~~March 31, 2022. The decrease was due to net outflows of ~~$1.3~~$1.4 billion and market depreciation of ~~$1.8~~$3.8 billion. Net outflows included ~~$1.1 billion~~$940 million from U.S. real ~~assets multi-strategy (included in "Other" in the table on pages 25~~estate and ~~26).~~$356 million from global/international real estate. Market depreciation included ~~$1.2~~$2.0 billion from global/international real estate and ~~$402 million~~$1.3 billion from ~~preferred securities.~~U.S. real estate. Our organic decay rate for advisory accounts for the twelve months ended ~~June 30, 2022~~March 31, 2023 was ~~(5.4%~~(6.0%).

Average assets under management for advisory accounts for the three months ended ~~June 30, 2022~~March 31, 2023 decreased ~~1.0%~~19.9% to ~~$21.9~~$19.1 billion from ~~$22.1~~$23.9 billion for the three months ended ~~June 30, 2021.~~March 31, 2022.

Assets under management in Japan subadvisory accounts at ~~June 30, 2022,~~March 31, 2023, which represented ~~25.9%~~26.7% of institutional assets under management, decreased ~~14.9%~~18.5% to ~~$8.9~~$8.7 billion from ~~$10.5~~$10.7 billion at ~~June 30, 2021.~~March 31, 2022. The decrease was due to ~~net outflows of $155 million,~~ market depreciation of ~~$325 million~~$1.8 billion and distributions of ~~$1.1 billion.~~$974 million, partially offset by net inflows of $761 million. Net ~~outflows~~inflows included ~~$300~~$788 million ~~from~~into U.S. real estate, partially offset by net ~~inflows~~outflows of ~~$153~~$21 million ~~into global/international real estate.~~from preferred securities. Market depreciation included ~~$203~~$1.3 billion from U.S. real estate and $497 million from global/international real ~~estate and $111 million from U.S. real~~ estate. Distributions included ~~$1.0 billion~~$933 million from U.S. real estate. Our organic ~~decay~~growth rate for Japan subadvisory accounts for the twelve months ended ~~June 30, 2022~~March 31, 2023 was ~~(1.5%)~~7.1%.

Average assets under management for Japan subadvisory accounts for the three months ended ~~June 30, 2022~~March 31, 2023 decreased ~~6.8%~~15.6% to ~~$9.6~~$8.7 billion from ~~$10.3~~$10.4 billion for the three months ended ~~June 30, 2021.~~March 31, 2022.

Assets under management in subadvisory accounts excluding Japan at ~~June 30, 2022,~~March 31, 2023, which represented ~~15.7%~~16.6% of institutional assets under management, decreased ~~16.9%~~17.4% to $5.4 billion from $6.5 billion at ~~June 30, 2021.~~March 31, 2022. The decrease was due to ~~net outflows of $480 million and~~ market depreciation of ~~$625~~$1.2 billion, partially offset by net inflows of $103 million. Net ~~outflows~~inflows included ~~$289~~$95 million ~~from global listed infrastructure and $192~~into U.S. real estate. Market depreciation included $888 million from global/international real ~~estate. Market depreciation included $589~~estate and $220 million from ~~global/international~~U.S. real estate. Our organic ~~decay~~growth rate for subadvisory accounts excluding Japan for the twelve months ended ~~June 30, 2022~~March 31, 2023 was ~~(7.3%)~~1.6%.

Average assets under management for subadvisory accounts excluding Japan for the three months ended ~~June 30, 2022~~March 31, 2023 decreased ~~10.1%~~13.6% to ~~$6.0~~$5.5 billion from ~~$6.7~~$6.4 billion for the three months ended ~~June 30, 2021.~~March 31, 2022.

2726

Closed-end funds

Assets under management in closed-end funds at ~~June 30, 2022,~~March 31, 2023, which represented ~~13.4%~~13.6% of total assets under management, decreased ~~6.1%~~16.7% to ~~$11.8~~$10.9 billion from ~~$12.5~~$13.1 billion at ~~June 30, 2021.~~March 31, 2022. The decrease was primarily due to market depreciation of ~~$612 million~~$1.4 billion and distributions of ~~$626 million, partially offset by net inflows of $474~~$703 million. ~~Inflows of $482 million, which included leverage, were attributable to the Company's initial public offering of the Cohen & Steers Real Estate Opportunities and Income Fund (RLTY).~~ Our organic ~~growth~~decay rate for closed-end funds for the twelve months ended ~~June 30, 2022~~March 31, 2023 was ~~3.8%~~(0.4%).

Average assets under management for closed-end funds ~~was $12.4 billion~~ for ~~both~~ the three months ended ~~June 30, 2022 and 2021, respectively.~~March 31, 2023 decreased 9.5% to $11.4 billion from $12.6 billion for the three months ended March 31, 2022.

2827

Summary of Operating Results


(in thousands, except percentages and per share data)	(in thousands, except percentages and per share data)	Three Months Ended June 30,						Six Months Ended June 30,						(in thousands, except percentages and per share data)	Three Months Ended March 31,
		2022			2021			2022			2021				2023			2022
U.S. GAAP	U.S. GAAP													U.S. GAAP
Revenue	Revenue	$	147,431		$	144,269		$	301,620		$	270,016		Revenue	$	126,082		$	154,189
Expenses	Expenses	$	86,437		$	84,572		$	189,635		$	158,381		Expenses	$	81,183		$	103,198
Operating income	Operating income	$	60,994		$	59,697		$	111,985		$	111,635		Operating income	$	44,899		$	50,991
Non-operating income (loss) (1)	Non-operating income (loss) (1)	$	(25,002)		$	8,536		$	(19,892)		$	13,489		Non-operating income (loss) (1)	$	1,632		$	5,110
Net income attributable to common stockholders	Net income attributable to common stockholders	$	51,956		$	46,579		$	93,974		$	95,431		Net income attributable to common stockholders	$	35,314		$	42,018
Diluted earnings per share	Diluted earnings per share	$	1.06		$	0.95		$	1.91		$	1.95		Diluted earnings per share	$	0.71		$	0.85
Operating margin	Operating margin	41.4		%	41.4		%	37.1		%	41.3		%	Operating margin	35.6		%	33.1		%

As Adjusted (2)	As Adjusted (2)													As Adjusted (2)
Net income attributable to common stockholders	Net income attributable to common stockholders	$	47,202		$	45,917		$	98,354		$	84,546		Net income attributable to common stockholders	$	37,594		$	51,152
Diluted earnings per share	Diluted earnings per share	$	0.96		$	0.94		$	2.00		$	1.73		Diluted earnings per share	$	0.76		$	1.04
Operating margin	Operating margin	43.3		%	43.4		%	44.0		%	42.9		%	Operating margin	38.0		%	44.7		%

_________________________

(1)~~Includes~~Included amounts attributable to third-party interests in consolidated investment vehicles. Refer to non-operating income (loss) tables on pages ~~30 and 32~~29-30 for additional detail.

(2)Refer to pages ~~35-36~~31-33 for reconciliations of U.S. GAAP to as adjusted results.

~~U.S. GAAP~~

Three Months Ended ~~June 30, 2022~~March 31, 2023 Compared with Three Months Ended ~~June 30, 2021~~March 31, 2022

Revenue
(in thousands) Three Months Ended
June 30,
2022 2021 $ Change % Change
Investment advisory and administration fees
Open-end funds $ 75,785 $ 69,706 $ 6,079 8.7 %
Institutional accounts 34,429 37,381 $ (2,952) (7.9 %)
Closed-end funds 27,441 27,261 $ 180 0.7 %
Total 137,655 134,348 $ 3,307 2.5 %
Distribution and service fees 9,005 9,199 $ (194) (2.1 %)
Other 771 722 $ 49 6.8 %
Total revenue $ 147,431 $ 144,269 $ 3,162 2.2 %


(in thousands)	Three Months Ended March 31,
	2023		2022		$ Change		% Change
Investment advisory and administration fees
Open-end funds	$	62,520	$	79,665	$	(17,145)	(21.5)	%
Institutional accounts	30,629		36,683		$	(6,054)	(16.5)	%
Closed-end funds	24,885		27,321		$	(2,436)	(8.9)	%
Total	118,034		143,669		$	(25,635)	(17.8)	%
Distribution and service fees	7,562		9,869		$	(2,307)	(23.4)	%
Other	486		651		$	(165)	(25.3)	%
Total revenue	$	126,082	$	154,189	$	(28,107)	(18.2)	%

Investment advisory and administration fees increased from the three months ended June 30, 2021, primarily due to higher average assets under management in both open-end and closed-end funds, partially offset by lower average assets under management in institutional accounts. In addition, the three months ended June 30, 2021 included the recognition of performance fees from certain institutional accounts.

•Total investment advisory and administration revenue from open-end funds compared with average assets under management implied an annualized effective fee rate of 67.3 bps and 67.4 bps for the three months ended June 30, 2022 and 2021, respectively.

•Total investment advisory revenue from institutional accounts compared with average assets under management implied an annualized effective fee rate of 36.8 bps and 38.3 bps for the three months ended June 30, 2022 and 2021, respectively. The decrease in the implied annualized effective fee rate was primarily due to the recognition of performance fees for the three months ended June 30, 2021. Excluding the performance fees, the implied annualized effective fee rate would have been 36.0 bps for the three months ended June 30, 2021.

•Total investment advisory and administration revenue from closed-end funds compared with average assets under management implied an annualized effective fee rate of 88.6 bps and 88.4 bps for the three months ended June 30, 2022 and 2021, respectively.

~~Expenses~~
(in thousands) Three Months Ended
June 30,
2022 2021 $ Change % Change
Employee compensation and benefits $ 53,857 $ 53,241 $ 616 1.2 %
Distribution and service fees 18,236 18,848 $ (612) (3.2 %)
General and administrative 13,238 11,466 $ 1,772 15.5 %
Depreciation and amortization 1,106 1,017 $ 89 8.8 %
Total expenses $ 86,437 $ 84,572 $ 1,865 2.2 %

Employee compensation and benefits increased from the three months ended June 30, 2021, primarily due to higher salaries of $1.3 million, an increase in amortization of restricted stock units of $1.0 million and higher severance expense of $427,000, partially offset by lower incentive compensation of $2.1 million.

~~Distribution and service~~ fees decreased from the three months ended ~~June 30, 2021,~~March 31, 2022, primarily due to ~~a shift in the composition of assets under management into~~ lower ~~cost share classes.~~

General and administrative expenses increased from the three months ended June 30, 2021, primarily due to higher travel and entertainment of $710,000 and an increase in information technology related expenses of $529,000.

~~Operating Margin~~

~~Operating margin was 41.4% for both the three months ended June 30, 2022 and 2021. Operating margin represents the ratio of operating income to revenue.~~

~~Non-operating Income (Loss)~~

(in thousands) Three Months Ended
June 30, 2022
Consolidated
Investment Vehicles Corporate
Seed Investments Corporate Other Total
Interest and dividend income—net $ 1,499 292 $ 97 $ 1,888
Gain (loss) from investments—net
(29,558) (2,461) 3,446 (1) (28,573)
Foreign currency gain (loss)—net (623) (5) 2,311 1,683
Total non-operating income (loss) (28,682) (2,174) 5,854 (25,002)
Net (income) loss attributable to redeemable noncontrolling interests 25,807 — — 25,807
Non-operating income (loss) attributable to the Company $ (2,875) $ (2,174) $ 5,854 $ 805

~~_________________________~~

(1) Comprised primarily of gain (loss) on derivative contracts, which are utilized to hedge a portion of the market risk of the Company's seed investments including both consolidated investment vehicles and corporate seed investments.

(in thousands) Three Months Ended
June 30, 2021
Consolidated
Investment Vehicles Corporate
Seed Investments Corporate Other Total
Interest and dividend income—net $ 627 $ 190 $ 20 $ 837
Gain (loss) from investments—net
7,786 2,767 (2,775) (1) 7,778
Foreign currency gain (loss)—net 223 — (302) (79)
Total non-operating income (loss) 8,636 2,957 (3,057) 8,536
Net (income) loss attributable to redeemable noncontrolling interests (5,827) — — (5,827)
Non-operating income (loss) attributable to the Company $ 2,809 $ 2,957 $ (3,057) $ 2,709

~~_________________________~~

~~Income Taxes~~

~~A reconciliation of the Company’s statutory federal income tax rate and the effective income tax rate is summarized in the following table:~~

Three Months Ended
June 30,
2022 2021
U.S. statutory tax rate 21.0 % 21.0 %
State and local income taxes, net of federal benefit 3.1 3.9
Non-deductible executive compensation 1.6 1.7
Excess tax benefits related to the vesting and delivery of restricted stock units 0.2 (0.1)
Unrecognized tax benefit adjustments (10.1) 0.4
Other 0.1 (1.5)
Effective income tax rate 15.9 % 25.4 %

~~Six Months Ended June 30, 2022 Compared with Six Months Ended June 30, 2021~~

~~Revenue~~
(in thousands) Six Months Ended
June 30,
2022 2021 $ Change % Change
Investment advisory and administration fees
Open-end funds $ 155,450 $ 130,309 $ 25,141 19.3 %
Institutional accounts 71,112 68,368 $ 2,744 4.0 %
Closed-end funds 54,762 52,592 $ 2,170 4.1 %
Total 281,324 251,269 $ 30,055 12.0 %
Distribution and service fees 18,874 17,471 $ 1,403 8.0 %
Other 1,422 1,276 $ 146 11.4 %
Total revenue $ 301,620 $ 270,016 $ 31,604 11.7 %

~~Investment advisory and administration fees increased from the six months ended June 30, 2021, primarily due to higher~~ average assets under management across all three types of investment vehicles.

•Total investment advisory and administration revenue from open-end funds compared with average assets under management implied an annualized effective fee rate of ~~67.3~~66.0 bps and 67.2 bps for ~~both~~ the ~~six~~three months ended ~~June 30,~~March 31, 2023 and 2022, ~~and 2021.~~respectively. The decrease in the implied annualized effective fee rate was primarily due to a shift in the composition of assets under management.

•Total investment advisory revenue from institutional accounts compared with average assets under management implied an annualized effective fee rate of ~~36.7~~37.2 bps and ~~37.4~~36.6 bps for the ~~six~~three months ended ~~June 30,~~March 31, 2023 and 2022, ~~and 2021,~~ respectively. The decrease in the implied annualized effective fee rate was primarily due to the recognition of performance fees for the six months ended June 30, 2021. Excluding the performance fees, the implied annualized effective fee rate would have been 36.1 bps for the six months ended June 30, 2021.

•Total investment advisory and administration revenue from closed-end funds compared with average assets under management implied an annualized effective fee rate of ~~88.4~~88.9 bps and ~~88.5~~88.3 bps for the ~~six~~three months ended ~~June 30,~~March 31, 2023 and 2022, ~~and 2021,~~ respectively.

Distribution and service fees decreased from the three months ended March 31, 2022, primarily due to lower average assets under management in U.S. open-end funds.

Expenses


(in thousands)	(in thousands)	Six Months Ended June 30,								(in thousands)	Three Months Ended March 31,
		2022		2021		$ Change		% Change			2023		2022		$ Change		% Change
Employee compensation and benefits	Employee compensation and benefits	$	108,600	$	99,003	$	9,597	9.7	%	Employee compensation and benefits	$	48,857	$	54,743	$	(5,886)	(10.8)	%
Distribution and service fees	Distribution and service fees	52,187		35,354		$	16,833	47.6	%	Distribution and service fees	14,216		33,951		$	(19,735)	(58.1)	%
General and administrative	General and administrative	26,748		21,840		$	4,908	22.5	%	General and administrative	17,122		13,510		$	3,612	26.7	%
Depreciation and amortization	Depreciation and amortization	2,100		2,184		$	(84)	(3.8)	%	Depreciation and amortization	988		994		$	(6)	(0.6)	%
Total expenses	Total expenses	$	189,635	$	158,381	$	31,254	19.7	%	Total expenses	$	81,183	$	103,198	$	(22,015)	(21.3)	%

Employee compensation and benefits ~~increased~~decreased from the ~~six~~three months ended ~~June 30, 2021,~~March 31, 2022, primarily due to ~~higher~~lower incentive compensation of $7.3 million and a decrease in amortization of restricted stock units of ~~$3.2~~$1.0 million, ~~an increase in~~partially offset by higher salaries of ~~$2.5 million and higher incentive compensation of $1.3~~$2.1 million.

Distribution and service ~~fees increased~~fee expenses decreased from the ~~six~~three months ended ~~June 30, 2021,~~March 31, 2022, primarily due to lower average assets under management in U.S. open-end funds and costs of $14.2 million associated with the initial public offering of ~~RLTY~~the Cohen & Steers Real Estate Opportunities and ~~higher average assets under management~~Income Fund (RLTY) included in ~~U.S. open-end funds.~~the three months ended March 31, 2022 .

General and administrative expenses increased from the ~~six~~three months ended ~~June 30, 2021,~~March 31, 2022, primarily due to ~~due~~incremental lease costs of $3.2 million related to ~~higher information technology related expenses~~the Company's future headquarters at 1166 Avenue of ~~$1.4 million, an increase in travel and entertainment of $1.1 million and higher organizational and offering costs associated with RLTY of $658,000.~~the Americas.

Operating Margin

Operating margin for the ~~six~~three months ended ~~June 30, 2022 decreased~~March 31, 2023 increased to ~~37.1%~~35.6% from ~~41.3%~~33.1% for the ~~six~~three months ended ~~June 30, 2021. The six months ended June 30, 2022 included costs associated with~~March 31, 2022. Operating margin represents the ~~initial public offering~~ratio of ~~RLTY.~~operating income to revenue.

Non-operating Income (Loss)


(in thousands)	(in thousands)	Six Months Ended									(in thousands)	Three Months Ended
		June 30, 2022										March 31, 2023
		Consolidated Investment Vehicles		Corporate Seed Investments		Corporate Other			Total			Consolidated Investment Vehicles		Corporate Seed Investments		Corporate Other			Total
Interest and dividend income—net	Interest and dividend income—net	$	2,233	$	459	$	93		$	2,785	Interest and dividend income—net	$	884	$	843	$	1,489		$	3,216
Gain (loss) from investments—net	Gain (loss) from investments—net	(26,045)		(1,709)		2,748		(1)	(25,006)		Gain (loss) from investments—net	(7)		45		(346)		(1)	(308)
Foreign currency gain (loss)—net	Foreign currency gain (loss)—net	(917)		(6)		3,252			2,329		Foreign currency gain (loss)—net	41		24		(1,341)			(1,276)
Total non-operating income (loss)	Total non-operating income (loss)	(24,729)		(1,256)		6,093			(19,892)		Total non-operating income (loss)	918		912		(198)			1,632
Net (income) loss attributable to redeemable noncontrolling interests		20,984		—		—			20,984
Non-operating income (loss) attributable to the Company		$	(3,745)	$	(1,256)	$	6,093		$	1,092
Net (income) loss attributable to noncontrolling interests											Net (income) loss attributable to noncontrolling interests	(984)		—		—			(984)
Non-operating income (loss) attributable to the company											Non-operating income (loss) attributable to the company	$	(66)	$	912	$	(198)		$	648

_________________________

(1) Comprised primarily of gain (loss) on derivative contracts, which are utilized to economically hedge a portion of the market risk of the Company's seed investments ~~including~~included in both ~~consolidated investment vehicles~~Consolidated Investment Vehicles and ~~corporate seed investments.~~Corporate Seed Investments.

3229


(in thousands)	(in thousands)	Six Months Ended									(in thousands)	Three Months Ended
		June 30, 2021										March 31, 2022
		Consolidated Investment Vehicles		Corporate Seed Investments		Corporate Other			Total			Consolidated Investment Vehicles		Corporate Seed Investments		Corporate Other			Total
Interest and dividend income—net	Interest and dividend income—net	$	1,091	$	330	$	32		$	1,453	Interest and dividend income—net	$	734	$	167	$	(4)		$	897
Gain (loss) from investments—net	Gain (loss) from investments—net	12,546		4,217		(4,426)		(1)	12,337		Gain (loss) from investments—net	3,513		752		(698)		(1)	3,567
Foreign currency gain (loss)—net	Foreign currency gain (loss)—net	416		(2)		(715)			(301)		Foreign currency gain (loss)—net	(294)		(1)		941			646
Total non-operating income (loss)	Total non-operating income (loss)	14,053		4,545		(5,109)			13,489		Total non-operating income (loss)	3,953		918		239			5,110
Net (income) loss attributable to redeemable noncontrolling interests		(9,405)		—		—			(9,405)
Non-operating income (loss) attributable to the Company		$	4,648	$	4,545	$	(5,109)		$	4,084
Net (income) loss attributable to noncontrolling interests											Net (income) loss attributable to noncontrolling interests	(4,823)		—		—			(4,823)
Non-operating income (loss) attributable to the company											Non-operating income (loss) attributable to the company	$	(870)	$	918	$	239		$	287

_________________________

Income Taxes

A reconciliation of the Company’s statutory federal income tax rate and the effective income tax rate is summarized in the following table:


		Six Months Ended June 30,					Three Months Ended March 31,
		2022		2021			2023		2022
U.S. statutory tax rate	U.S. statutory tax rate	21.0	%	21.0	%	U.S. statutory tax rate	21.0	%	21.0	%
State and local income taxes, net of federal benefit	State and local income taxes, net of federal benefit	3.1		3.9		State and local income taxes, net of federal benefit	3.1		3.5
Non-deductible executive compensation	Non-deductible executive compensation	3.3		2.2		Non-deductible executive compensation	3.0		5.2
Unrecognized tax benefit adjustments						Unrecognized tax benefit adjustments	0.2		—
Excess tax benefits related to the vesting and delivery of restricted stock units	Excess tax benefits related to the vesting and delivery of restricted stock units	(5.1)		(4.8)		Excess tax benefits related to the vesting and delivery of restricted stock units	(4.6)		(11.5)
Unrecognized tax benefit adjustments		(5.5)		(4.4)
Other	Other	0.1		(0.4)		Other	(0.2)		(0.1)
Effective income tax rate	Effective income tax rate	16.9	%	17.5	%	Effective income tax rate	22.5	%	18.1	%

~~As Adjusted~~

~~This section discusses as adjusted results. Refer to pages 37-38 for reconciliations of U.S. GAAP to as adjusted results.~~

~~Three Months Ended June 30, 2022 Compared with Three Months Ended June 30, 2021~~

~~Revenue~~

~~Revenue, as adjusted, for the three months ended June 30, 2022 was $147.7 million, compared with $144.4 million, as adjusted, for the three months ended June 30, 2021.~~

~~Revenue, as adjusted, excluded the consolidation of certain of our seed investments for both periods.~~

~~Expenses~~

~~Expenses, as adjusted, for the three months ended June 30, 2022 were $83.7 million, compared with $81.8 million, as adjusted, for the three months ended June 30, 2021.~~

~~Expenses, as adjusted, excluded the following:~~

•~~The consolidation of certain of our seed investments for both periods; and~~

•~~Amounts related to the accelerated vesting of certain restricted stock units for both periods.~~

~~Operating Margin~~

~~Operating margin, as adjusted, for the three months ended June 30, 2022 was 43.3%, compared with 43.4%, as adjusted, for the three months ended June 30, 2021.~~

~~Non-operating Income (Loss)~~

~~Non-operating loss, as adjusted, for the three months ended June 30, 2022 was $1.1 million, compared with non-operating loss, as adjusted, of $120,000 for the three months ended June 30, 2021.~~

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

•~~Results from our seed investments; and~~

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

~~Income Taxes~~

~~The effective income tax rate, as adjusted, for the three months ended June 30, 2022 was 25.0%, compared with 26.5%, as adjusted, for the three months ended June 30, 2021.~~

~~The effective income tax rate, as adjusted, excluded the following for both periods:~~

•~~Tax effects associated with items noted above; and~~

•~~Discrete tax items.~~

~~Six Months Ended June 30, 2022 Compared with Six Months Ended June 30, 2021~~

~~Revenue~~

~~Revenue, as adjusted, for the six months ended June 30, 2022 was $302.0 million, compared with $270.2 million, as adjusted, for the six months ended June 30, 2021.~~

~~Revenue, as adjusted, excluded the consolidation of certain of our seed investments for both periods.~~

~~Expenses~~

~~Expenses, as adjusted, for the six months ended June 30, 2022 were $169.1 million, compared with $154.4 million, as adjusted, for the six months ended June 30, 2021.~~

~~Expenses, as adjusted, excluded the following:~~

•~~The consolidation of certain of our seed investments for both periods;~~

•~~Amounts related to the accelerated vesting of certain restricted stock units for both periods; and~~

•~~Costs associated with the initial public offering of RLTY for the six months ended June 30, 2022.~~

~~Operating Margin~~

~~Operating margin, as adjusted, for the six months ended June 30, 2022 was 44.0%, compared with 42.9%, as adjusted, for the six months ended June 30, 2021.~~

~~Non-operating Income (Loss)~~

~~Non-operating loss, as adjusted, for the six months ended June 30, 2022 was $1.4 million, compared with non-operating loss, as adjusted, of $238,000 for the six months ended June 30, 2021.~~

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

•~~Results from our seed investments; and~~

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

~~Income Taxes~~

~~The effective income tax rate, as adjusted, for the six months ended June 30, 2022 was 25.3%, compared with 26.9%, as adjusted, for the six months ended June 30, 2021.~~

~~The effective income tax rate, as adjusted, excluded the following for both periods:~~

•~~Tax effects associated with items noted above; and~~

•~~Discrete tax items.~~

3430

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

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

While ~~we believe~~management believes that these as adjusted financial results are useful in evaluating operating performance, this information should be considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance with U.S. GAAP.

Effective January 1, 2023, the Company revised its methodology for as adjusted results to include interest and dividends from seed investments. Prior period amounts have not been recast to conform with the current period results as the impact was not significant.

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

Net Income Attributable to Common Stockholders and Diluted Earnings per Share


		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended March 31,
(in thousands, except per share data)	(in thousands, except per share data)	2022		2021		2022		2021		(in thousands, except per share data)	2023		2022
Net income attributable to common stockholders, U.S. GAAP	Net income attributable to common stockholders, U.S. GAAP	$	51,956	$	46,579	$	93,974	$	95,431	Net income attributable to common stockholders, U.S. GAAP	$	35,314	$	42,018
Seed investments (1)		2,170		(2,752)		3,221		(4,264)
Seed investments—net (1)										Seed investments—net (1)	968		1,051
Accelerated vesting of restricted stock units	Accelerated vesting of restricted stock units	2,490		2,664		4,795		3,752		Accelerated vesting of restricted stock units	245		2,305
Initial public offering costs (2)		—		—		15,239		—
Lease transition and other costs - 280 Park Avenue (2)										Lease transition and other costs - 280 Park Avenue (2)	2,443		—
Initial public offering costs (3)										Initial public offering costs (3)	—		15,239

Foreign currency exchange (gains) losses—net (3)		(3,542)		162		(4,754)		371
Tax adjustments (4)		(5,872)		(736)		(14,121)		(10,744)

Foreign currency exchange (gains) losses—net (4)										Foreign currency exchange (gains) losses—net (4)	1,090		(1,212)
Tax adjustments—net (5)										Tax adjustments—net (5)	(2,466)		(8,249)
Net income attributable to common stockholders, as adjusted	Net income attributable to common stockholders, as adjusted	$	47,202	$	45,917	$	98,354	$	84,546	Net income attributable to common stockholders, as adjusted	$	37,594	$	51,152

Diluted weighted average shares outstanding	Diluted weighted average shares outstanding	49,208		48,951		49,272		48,831		Diluted weighted average shares outstanding	49,402		49,337
Diluted earnings per share, U.S. GAAP	Diluted earnings per share, U.S. GAAP	$	1.06	$	0.95	$	1.91	$	1.95	Diluted earnings per share, U.S. GAAP	$	0.71	$	0.85
Seed investments		0.04		(0.06)		0.07		(0.09)
Seed investments—net										Seed investments—net	0.02		0.02
Accelerated vesting of restricted stock units	Accelerated vesting of restricted stock units	0.05		0.06		0.10		0.08		Accelerated vesting of restricted stock units	0.01		0.05
Lease transition and other costs - 280 Park Avenue										Lease transition and other costs - 280 Park Avenue	0.05		—
Initial public offering costs	Initial public offering costs	—		—		0.31		—		Initial public offering costs	—		0.31

Foreign currency exchange (gains) losses—net	Foreign currency exchange (gains) losses—net	(0.07)		0.01		(0.10)		0.01		Foreign currency exchange (gains) losses—net	0.02		(0.02)
Tax adjustments		(0.12)		(0.02)		(0.29)		(0.22)
Tax adjustments—net										Tax adjustments—net	(0.05)		(0.17)
Diluted earnings per share, as adjusted	Diluted earnings per share, as adjusted	$	0.96	$	0.94	$	2.00	$	1.73	Diluted earnings per share, as adjusted	$	0.76	$	1.04

_________________________

(1)Represents amounts related to the deconsolidation of seed investments in consolidated investment vehicles as well as non-operating

(income) loss from seed investments that were not consolidated. In accordance with the Company’s revised methodology, interest and dividends from seed investments were not included in the adjustment for the three months ended March 31, 2023.

(2)Represents lease and other expenses related to the Company's current headquarters at 280 Park Avenue, which it expects to vacate in the fourth quarter of 2023. In connection with the transition to its future headquarters, the Company will recognize additional GAAP expense as a result of the overlapping terms for both its current and future headquarters until its current headquarters lease expires in January 2024.

(3)Represents costs associated with the initial public offering of RLTY. Costs are summarized in the following table:

Three Months Ended
June 30, Six Months Ended
June 30,
(in thousands) 2022 2021 2022 2021
Employee compensation and benefits $ — $ — $ 357 $ —
Distribution and service fees — — 14,224 —
General and administrative — — 658 —
Initial public offering costs $ — $ — $ 15,239 $ —


	Three Months Ended March 31,
(in thousands)	2023		2022
Employee compensation and benefits	$	—	$	357
Distribution and service fees	—		14,224
General and administrative	—		658
Initial public offering costs	$	—	$	15,239

~~(3)~~ (4)Represents net foreign currency exchange (gains) losses associated with U.S. dollar-denominated assets held by certain foreign subsidiaries.

~~(4)~~ (5)Tax adjustments are summarized in the following table:
Three Months Ended
June 30, Six Months Ended
June 30,
(in thousands) 2022 2021 2022 2021
Exclusion of tax effects associated with items noted above $ 15 $ (726) $ (4,266) $ (495)
Exclusion of discrete tax items (5,887) (10) (9,855) (10,249)
Total tax adjustments $ (5,872) $ (736) $ (14,121) $ (10,744)


	Three Months Ended March 31,
(in thousands)	2023		2022
Exclusion of tax effects associated with items noted above	$	(1,285)	$	(4,281)
Exclusion of discrete tax items	(1,181)		(3,968)
Total tax adjustments	$	(2,466)	$	(8,249)

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

Revenue, Expenses, Operating Income and Operating Margin


		Three Months Ended June 30,						Six Months Ended June 30,							Three Months Ended March 31,
(in thousands, except percentages)	(in thousands, except percentages)	2022			2021			2022			2021			(in thousands, except percentages)	2023			2022
Revenue, U.S. GAAP	Revenue, U.S. GAAP	$	147,431		$	144,269		$	301,620		$	270,016		Revenue, U.S. GAAP	$	126,082		$	154,189
Seed investments (1)	Seed investments (1)	292			105			415			199			Seed investments (1)	183			123
Revenue, as adjusted	Revenue, as adjusted	$	147,723		$	144,374		$	302,035		$	270,215		Revenue, as adjusted	$	126,265		$	154,312

Expenses, U.S. GAAP	Expenses, U.S. GAAP	$	86,437		$	84,572		$	189,635		$	158,381		Expenses, U.S. GAAP	$	81,183		$	103,198
Seed investments (1)	Seed investments (1)	(218)			(134)			(494)			(230)			Seed investments (1)	(267)			(276)
Accelerated vesting of restricted stock units	Accelerated vesting of restricted stock units	(2,490)			(2,664)			(4,795)			(3,752)			Accelerated vesting of restricted stock units	(245)			(2,305)
Initial public offering costs (2)		—			—			(15,239)			—
Lease transition and other costs - 280 Park Avenue (2)														Lease transition and other costs - 280 Park Avenue (2)	(2,443)			—
Initial public offering costs (3)														Initial public offering costs (3)	—			(15,239)

Expenses, as adjusted	Expenses, as adjusted	$	83,729		$	81,774		$	169,107		$	154,399		Expenses, as adjusted	$	78,228		$	85,378

Operating income, U.S. GAAP	Operating income, U.S. GAAP	$	60,994		$	59,697		$	111,985		$	111,635		Operating income, U.S. GAAP	$	44,899		$	50,991
Seed investments (1)	Seed investments (1)	510			239			909			429			Seed investments (1)	450			399
Accelerated vesting of restricted stock units	Accelerated vesting of restricted stock units	2,490			2,664			4,795			3,752			Accelerated vesting of restricted stock units	245			2,305
Initial public offering costs (2)		—			—			15,239			—
Lease transition and other costs - 280 Park Avenue (2)														Lease transition and other costs - 280 Park Avenue (2)	2,443			—
Initial public offering costs (3)														Initial public offering costs (3)	—			15,239

Operating income, as adjusted	Operating income, as adjusted	$	63,994		$	62,600		$	132,928		$	115,816		Operating income, as adjusted	$	48,037		$	68,934

Operating margin, U.S. GAAP	Operating margin, U.S. GAAP	41.4		%	41.4		%	37.1		%	41.3		%	Operating margin, U.S. GAAP	35.6		%	33.1		%
Operating margin, as adjusted	Operating margin, as adjusted	43.3		%	43.4		%	44.0		%	42.9		%	Operating margin, as adjusted	38.0		%	44.7		%

_________________________

(1)Represents amounts related to the deconsolidation of seed investments in consolidated investment vehicles.

(3)Represents costs associated with the initial public offering of RLTY. Costs are summarized in the following table:
Three Months Ended
June 30, Six Months Ended
June 30,
(in thousands) 2022 2021 2022 2021
Employee compensation and benefits $ — $ — $ 357 $ —
Distribution and service fees — — 14,224 —
General and administrative — — 658 —
Initial public offering costs $ — $ — $ 15,239 $ —


	Three Months Ended March 31,
(in thousands)	2023		2022
Employee compensation and benefits	$	—	$	357
Distribution and service fees	—		14,224
General and administrative	—		658
Initial public offering costs	$	—	$	15,239

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

Non-operating Income (Loss)


		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended March 31,
(in thousands)	(in thousands)	2022		2021		2022		2021		(in thousands)	2023		2022
Non-operating income (loss), U.S. GAAP	Non-operating income (loss), U.S. GAAP	$	(25,002)	$	8,536	$	(19,892)	$	13,489	Non-operating income (loss), U.S. GAAP	$	1,632	$	5,110
Seed investments (1)		27,467		(8,818)		23,296		(14,098)
Seed investments—net (1)										Seed investments—net (1)	(466)		(4,171)
Foreign currency exchange (gains) losses—net (2)	Foreign currency exchange (gains) losses—net (2)	(3,542)		162		(4,754)		371		Foreign currency exchange (gains) losses—net (2)	1,090		(1,212)
Non-operating income (loss), as adjusted	Non-operating income (loss), as adjusted	$	(1,077)	$	(120)	$	(1,350)	$	(238)	Non-operating income (loss), as adjusted	$	2,256	$	(273)

_________________________

(1) Represents amounts related to the deconsolidation of seed investments in consolidated investment vehicles as well as non-operating (income) loss from seed investments that were not consolidated. In accordance with the Company’s revised methodology, interest and dividends from seed investments were not included in the adjustment for the three months ended March 31, 2023.

(2) Represents net foreign currency exchange (gains) losses associated with U.S. dollar-denominated assets held by certain foreign subsidiaries.

3633

Changes in Financial Condition, Liquidity and Capital Resources

We seek to maintain a ~~capital structure~~balance sheet that supports our business strategies and ~~maintains~~provides the appropriate amount of liquidity at all times. ~~Furthermore, we currently expect cash flows from operations to be more than adequate to fund our present and reasonably foreseeable future commitments for investing and financing activities.~~

Net Liquid Assets

Our current financial condition is highly liquid and is primarily comprised of cash and cash equivalents, ~~U.S. Treasury securities,~~ liquid seed investments and other current assets. Liquid assets are reduced by current liabilities, which are generally defined as obligations due within one year (together, net liquid assets). ~~The Company does not currently have any outstanding debt.~~

The table below summarizes net liquid assets:


(in thousands)	(in thousands)	June 30, 2022		December 31, 2021		(in thousands)	March 31, 2022		December 31, 2022
Cash and cash equivalents	Cash and cash equivalents	$	126,569	$	184,373	Cash and cash equivalents	$	149,518	$	247,418
U.S. Treasury securities	U.S. Treasury securities	39,945		—		U.S. Treasury securities	29,673		—
Liquid seed investments—net	Liquid seed investments—net	62,562		62,679		Liquid seed investments—net	68,685		67,987
Other current assets	Other current assets	82,673		84,533		Other current assets	72,568		70,716
Current liabilities	Current liabilities	(89,580)		(118,888)		Current liabilities	(58,830)		(114,522)
Net liquid assets	Net liquid assets	$	222,169	$	212,697	Net liquid assets	$	261,614	$	271,599

Cash and cash equivalents

Cash and cash equivalents are on deposit with several ~~highly-rated~~major national financial institutions and include short-term, highly liquid investments, which are readily convertible into cash and have original maturities of three months or less.

During the six months ended June 30, 2022, we paid aggregate costs of $15.2 million associated with the initial public offering of RLTY. We also funded $21.2 million of our up to $50.0 million investment commitment in the Cohen & Steers Real Estate Opportunities Fund, L.P. (REOF). Refer to ~~Investment Commitments, Contractual Obligations, Commitments and Contingencies for further discussion.~~

U.S. Treasury securities

U.S. Treasury securities are directly issued by the U.S. government and were classified as trading investments.

Liquid seed investments—net

Liquid seed investments are generally traded in active markets on major exchanges and can typically be liquidated within a normal settlement cycle. Liquid seed investments include corporate securities held directly for the purpose of establishing performance track records and the Company's economic interest in consolidated investment vehicles ~~and~~which are presented net of ~~redeemable~~ noncontrolling interests.

Other current assets

Other current assets primarily represent investment advisory and administration fees receivable. At ~~June 30, 2022,~~March 31, 2023, institutional accounts comprised ~~48.6%~~48.3% of total accounts receivable, while open-end and closed-end funds, together, comprised ~~49.6%~~43.5% of total accounts receivable. We perform a review of our receivables on an ongoing basis in order to assess ~~collectibility~~collectability and, based on our analysis at ~~June 30, 2022,~~March 31, 2023, there was no allowance for uncollectible accounts required.

Current liabilities

Current liabilities included accrued compensation and benefits, distribution and service fees payable, operating lease obligations due within 12 months, certain income taxes payable and other liabilities and accrued expenses.

Future liquidity needs

Our business has become more capital intensive. Potential uses of capital range from funding the upfront costs associated with closed-end fund launches and rights offerings, seeding new strategies and vehicles, co-investing in private real estate vehicles, and making various one-time investments to grow our firm infrastructure as our business scales. In order to provide us with the financial flexibility to pursue these opportunities, on January 20, 2023, we entered into a Credit Agreement providing for a $100.0 million senior unsecured revolving credit facility maturing on January 20, 2026. Borrowings under the Credit Agreement will be used for working capital and other general corporate purposes. To date, we have not drawn on the credit agreement.

In connection with the build-out of our future office space located at 1166 Avenue of the Americas, we expect to incur costs of approximately $35.0 million to $45.0 million, net of lease incentives by the end of fiscal year 2023. The lease for our current corporate headquarters, also in New York City, is scheduled to expire in January 2024.

We have committed to invest up to $50.0 million in Cohen & Steers Real Estate Opportunities Fund, L.P. (REOF) of which $27.3 million remains unfunded. In addition, we have committed to invest up to $125.0 million in Cohen & Steers Income Opportunities REIT, Inc. (CNSREIT) of which $124.8 million remains unfunded. The timing for funding the remaining portion of our commitments is determined by the investment vehicles.

Cash flows

Our cash flows generally result from the operating activities of our business, with investment advisory and administration fees being the most significant contributor.

The table below summarizes our cash flows:
Six Months Ended
June 30,
(in thousands) 2022 2021
Cash Flow Data:
Net cash provided by (used in) operating activities $ (48,770) $ 90,023
Net cash provided by (used in) investing activities (43,601) 38,148
Net cash provided by (used in) financing activities 39,093 (58,155)
Net increase (decrease) in cash and cash equivalents (53,278) 70,016
Effect of foreign exchange rate changes on cash and cash equivalents (4,526) (19)
Cash and cash equivalents, beginning of the period 184,373 41,232
Cash and cash equivalents, end of the period $ 126,569 $ 111,229

We expect that cash flows provided by operating activities will provide sufficient liquidity to meet our obligations and continue to serve as our principal source of working capital for the foreseeable future.


	Three Months Ended March 31,
(in thousands)	2023		2022
Cash Flow Data:
Net cash provided by (used in) operating activities	$	(14,966)	$	(106,449)
Net cash provided by (used in) investing activities	(35,007)		(30,372)
Net cash provided by (used in) financing activities	(46,519)		38,648
Net increase (decrease) in cash and cash equivalents	(96,492)		(98,173)
Effect of foreign exchange rate changes on cash and cash equivalents	1,409		(1,383)
Cash and cash equivalents, beginning of the period	248,714		184,373
Cash and cash equivalents, end of the period	153,631		84,817

Cash and cash equivalents ~~increased~~decreased by ~~$53.3~~$96.5 million, excluding the effect of foreign exchange rate changes, for the ~~six~~three months ended ~~June 30,~~March 31, 2023. Cash flows from operating activities primarily consisted of net income adjusted for certain non-cash items and changes in assets and liabilities. Net cash used in operating activities was $15.0 million for the three months ended March 31, 2023. Net cash used in investing activities was $35.0 million, which included purchases of U.S. Treasury securities held for corporate purposes of $30.0 million. Net cash used in financing activities was $46.5 million, including dividends paid to stockholders of $28.1 million and repurchases of common stock to satisfy employee withholding tax obligations on the vesting and delivery of restricted stock units of $20.4 million, partially offset by net contributions from noncontrolling interests of $2.2 million.

Cash and cash equivalents decreased by $98.2 million, excluding the effect of foreign exchange rate changes, for the three months ended March 31, 2022. Cash flows from operating activities primarily consisted of net income adjusted for certain non-cash items and changes in assets and liabilities. Net cash used in operating activities was ~~$48.8~~$106.4 million for the ~~six~~three months ended ~~June 30,~~March 31, 2022, which included net investment purchases ~~within~~of $100.8 million resulting from the consolidation of certain ~~consolidated~~ investment vehicles. Net cash used in investing activities was ~~$43.6~~$30.4 million, which included ~~net~~ purchases of U.S. Treasury securities held for corporate purposes ~~and securities held directly for the purpose~~ of ~~establishing performance track records of $42.5~~$29.9 million. Net cash provided by financing activities was ~~$39.1~~$38.6 million, including net contributions from ~~redeemable~~ noncontrolling interests of ~~$117.8~~$90.7 million, partially offset by dividends paid to stockholders of ~~$53.7~~$26.8 million and repurchases of common stock to satisfy employee withholding tax obligations on the vesting and delivery of restricted stock units of ~~$25.8~~$25.6 million.

Cash and cash equivalents increased by $70.0 million, excluding the effect of foreign exchange rate changes, for the six months ended June 30, 2021. Cash flows from operating activities primarily consisted of net income adjusted for certain non cash items and changes in assets and liabilities. Net cash provided by operating activities was $90.0 million for the six months ended June 30, 2021. Net cash provided by investing activities was $38.1 million, which included $41.7 million of proceeds from sales and maturities of U.S. Treasury securities held for corporate purposes, partially offset by net purchases of securities held directly for the purpose of establishing performance track records of $2.6 million. Net cash used in financing activities was $58.2 million, including dividends paid to stockholders of $43.5 million and repurchases of common stock to satisfy employee withholding tax obligations on the vesting and delivery of restricted stock units of $21.3 million, partially offset by net contributions from redeemable noncontrolling interests of $6.0 million.

Contractual Obligations, Commitments and Contingencies

The following table summarizes our contractual obligations at ~~June 30, 2022:~~March 31, 2023:


(in thousands)	(in thousands)	2022		2023		2024		2025		2026 and after		Total		(in thousands)	Reminder of 2023		2024		2025		2026		2027		Thereafter		Total
Operating leases	Operating leases	$	6,135	$	11,825	$	1,099	$	—	$	—	$	19,059	Operating leases	$	8,760	$	10,881	$	13,038	$	13,038	$	13,038	$	161,161	$	219,916
Purchase obligations (1)	Purchase obligations (1)	2,970		5,113		3,467		2,598		2,384		16,532		Purchase obligations (1)	5,064		5,256		3,913		2,427		315		—		16,975
Other liability (2)	Other liability (2)	—		1,246		1,662		2,077		—		4,985		Other liability (2)	—		1,662		2,077		—		—		—		3,739
Total	Total	$	9,105	$	18,184	$	6,228	$	4,675	$	2,384	$	40,576	Total	$	13,824	$	17,799	$	19,028	$	15,465	$	13,353	$	161,161	$	240,630

_________________________

(1)Represents contracts ~~which~~that are either noncancellable or cancellable with a penalty. ~~The Company’s~~Our obligations primarily reflected information technology equipment, software licenses and standard service contracts for market data.

(2)Consists of the transition tax liability based on the cumulative undistributed earnings and profits of our foreign subsidiaries in connection with the enactment of the Tax Cuts and Jobs Act in 2017.

Investment Commitments

We have committed to invest up to $50.0 million in REOF. As of ~~June 30, 2022,~~March 31, 2023, we had funded ~~$21.2~~$22.7 million of this commitment. In addition, we have committed to invest up to $125.0 million in CNSREIT. As of March 31, 2023, we had funded $0.2 million of this commitment to enable CNSREIT to capitalize a share class in preparation for an offering. The timing for funding the remaining portion of our ~~commitment~~commitments is determined by the ~~fund.~~

investment vehicles.

Dividends

Subject to the approval of our Board of Directors, we anticipate paying dividends. When determining whether to pay a dividend, we take into account general economic and business conditions, our strategic plans, our results of operations and financial condition, contractual, legal and regulatory restrictions on the payment of dividends, if any, by us and our subsidiaries and such other factors deemed relevant.

On Au~~gust~~May 4, ~~2022,~~2023, we declared a quarterly dividend on our common stock in the amount of ~~$0.55~~$0.57 per share. This dividend will be payable on ~~August~~May 25, ~~2022~~2023 to stockholders of record at the close of business on ~~August~~May 15, ~~2022.~~2023.

Critical Accounting Estimates

Management considers the following accounting estimate critical to an informed review of our condensed consolidated financial statements as it requires management to make certain judgements about matters that may be uncertain at the time the estimate was determined.

~~For a~~A complete discussion of our critical accounting estimates ~~please see Part II, Item 7~~is included in Management's Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, ~~2021 (the Form 10-K). Other than as described below, there have been~~2022. There were no changes to the ~~critical~~Company’s accounting estimates ~~disclosed in~~for the ~~Form 10-K.~~

~~Valuation of Investments~~

There is no established market for private real estate investments, and there may not be any comparable public market valuations. As a result, the valuation of a private real estate investment may be based on imperfect information and is subject to inherent uncertainties, and the resulting values may differ from values that would have been determined had a ready market existed for such investments, from values placed on such investments by other investors and from prices at which such investments may ultimately be sold.

We have retained an independent valuation services firm to assist in the determination of the fair value of certain of our private real estate investments. Each real property investment is valued quarterly in accordance with the applicable governing documents. Limited partnerships that hold real property investments are valued using the valuation methodology we deem most appropriate and consistent with industry best practices and market conditions. We expect the primary methodology used to value real property investments will be the income approach, whereby value is derived by determining the present value of an asset’s stream of future cash flows (for example, discounted cash flow analysis). Consistent with industry practices, the income approach incorporates actual contractual lease income, professional judgments regarding comparable rental and operating expense data, the capitalization or discount rate and projections of future rent and expenses based on appropriate market evidence, and other subjective factors. Other methodologies that may also be used to value properties include, among other approaches, sales comparisons and cost approaches. We will monitor the investments for material events that we believe may be expected to have a material impact on the most recent estimated fair values of such real property investment.three months ended March 31, 2023.

Recently Issued Accounting Pronouncements

See discussion of Recently Issued Accounting Pronouncements in Note 2 of the ~~Notes to Condensed Consolidated Financial Statements contained in Part I, Item 1 of this report.~~condensed consolidated financial statements.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

In the normal course of our business, we are exposed to risk as a result of changes in interest and currency rates,

securities markets and other general economic conditions which may have an adverse impact on the value of our assets under management and our seed investments. The majority of our revenue is derived from investment advisory and administration fees which are based on average assets under management. Accordingly, where there are changes in the value of the assets we manage as a result of market fluctuations, our revenue and the value of our seed investments may change.

The economic environment may also preclude us from increasing the assets we manage in closed-end funds. The

market conditions for these offerings may not be as favorable in the future, which could adversely impact our ability to grow

the assets we manage. Depending on market conditions, the closed-end funds we manage may increase or decrease their leverage in order to maintain the funds’ target leverage ratios, thereby increasing or decreasing the assets we manage.

Corporate Seed investments—net

Our seed investments are comprised of both liquid and illiquid holdings. Liquid seed investments are generally traded in active markets on major exchanges and can typically be liquidated within a normal settlement cycle. Illiquid seed investments are generally comprised of limited partnership interests in private real estate vehicles for which there may be contractual restrictions on redemption.

Our seed investments are subject to market risk. We may mitigate this risk by entering into derivative contracts designed to hedge certain portions of our risk. The following table summarizes the effect of a ten percent increase or decrease on the carrying value of our seed investments, which are presented net of ~~redeemable~~ noncontrolling interests, if any, as of ~~June 30, 2022~~March 31, 2023 (in thousands):

Carrying
Value
Notional Value - Hedges Net Carrying Value Net Carrying Value Assuming a 10% increase Net Carrying Value Assuming a 10% decrease
Liquid seed investments—net $ 62,562 (26,298) $ 36,264 $ 39,890 $ 32,638
Illiquid seed investments—net $ 19,964 $ — $ 19,964 $ 21,960 $ 17,968


	Carrying Value		Notional Value - Hedges		Net Carrying Value		Net Carrying Value Assuming a 10% increase		Net Carrying Value Assuming a 10% decrease
Liquid seed investments—net	$	68,685	$	(40,520)	$	28,165	$	30,982	$	25,349
Illiquid seed investments—net	$	19,572	$	—	$	19,572	$	21,529	$	17,615

Item 4. Controls and Procedures

Internal Control over Financial Reporting

There has been no change in our internal control over financial reporting that occurred during the three months ended ~~June 30, 2022~~March 31, 2023 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Disclosure Controls and Procedures

Under the direction of our Chief Executive Officer and Chief Financial Officer, we have evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act)) as of the end of the period covered by this quarterly report on Form 10-Q. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective.

4037

PART II—Other Information

Item 1. Legal Proceedings

For information regarding our legal proceedings, see Note ~~10,~~11, Commitments and Contingencies, in the Notes to Condensed Consolidated Financial Statements contained in Part I, Item 1 of this report.

Item 1A. Risk Factors

For a discussion of the potential risks and uncertainties associated with our business, please see Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, ~~2021~~2022 (the Form 10-K). There have been no material changes to the risk factors disclosed in Part 1, Item 1A of the Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

During the three months ended ~~June 30, 2022,~~March 31, 2023, we made the following purchases of our equity securities that are registered pursuant to Section 12(b) of the Securities Exchange ~~Act.~~Act of 1934.

Period
Total Number of
Shares Purchased (1)
Average Price
Paid Per Share Total Number of
Shares Purchased
as Part of Publicly
Announced Plans
or Programs Maximum Number
of Shares that May
Yet Be Purchased
Under the Plans or
Programs
April 1 through April 30, 2022 183 $ 82.54 — —
May 1 through May 31, 2022 1,001 $ 71.01 — —
June 1 through June 30, 2022 1,352 $ 64.74 — —
Total 2,536 $ 68.50 — —


Period	Total Number of Shares Purchased (1)	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
January 1 through January 31, 2023	283,544	$	71.74	—	—
February 1 through February 28, 2023	1,361	$	72.00	—	—
March 1 through March 31, 2023	27	$	64.88	—	—
Total	284,932	$	71.74	—	—

_________________________

(1)Purchases made to satisfy the income tax withholding obligations of certain employees upon the vesting and delivery of restricted stock units issued under the Company's Amended and Restated Stock Incentive Plan.

4138

Item 6. Exhibits

Any agreements or other documents filed as exhibits to this report are not intended to provide factual information or other disclosure other than with respect to the terms of the agreements or other documents themselves, and should not be relied upon for that purpose. In particular, any representations and warranties made by the Company in these agreements or other documents were made solely within the specific context of the relevant agreement or document and may not describe the actual state of affairs at the date they were made or at any other time.


Exhibit No.		Description

3.1	—	Form of Amended and Restated Certificate of Incorporation of the Company (1)

3.2	—	~~Form of~~ Amended and Restated Bylaws of the Company (2)

4.1	—	Specimen Common Stock Certificate (3)

4.2	—	Form of Registration Rights Agreement among the Company, Martin Cohen, Robert H. Steers, The Martin Cohen 1998 Family Trust and Robert H. Steers Family Trust (1)

10.1	—	A ~~mended and Restated~~Credit Agreement, dated as of January 20, 2023, among Cohen & S t ~~eers,~~Steers, Inc. ~~Stock Incentive Plan~~ , Bank of America, N.A., as administrative agent, sole lead arranger and sole bookrunner, State Street Bank and Trust Company, as syndication agent, and the other lending institutions from time to time party thereto (4)

31.1	—	Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)

31.2	—	Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)

32.1	—	Certification of the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)

32.2	—	Certification of the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)

101	—	The following financial statements from the Company's Quarterly Report on Form 10-Q for the quarter ended ~~June 30, 2022~~March 31, 2023 formatted in inline XBRL (eXtensible Business Reporting Language): (i) the Condensed Consolidated Statements of Financial Condition (unaudited), (ii) the Condensed Consolidated Statements of Operations (unaudited), (iii) the Condensed Consolidated Statements of Comprehensive Income (unaudited), (iv) the Condensed Consolidated Statements of Changes in Stockholders' Equity ~~and Redeemable Noncontrolling Interests~~ (unaudited), (v) the Condensed Consolidated Statements of Cash Flows (unaudited), and (vi) the Notes to the Condensed Consolidated Financial Statements (unaudited).

104	—	Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).

_________________________

(1)Incorporated by reference to the Company's Registration Statement on Form S-1, as amended, originally filed with the Securities and Exchange Commission on March 30, 2004.

(2)Incorporated by reference to the ~~Company's~~Company’s Quarterly Report on Form 10-Q for the quarter ended ~~June~~September 30, ~~2008.~~2022.

(3)Incorporated by reference to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2015.

(4)Incorporated by reference to the ~~Company's~~Company’s Current Report on Form 8-K filed on ~~May 9, 2022.~~January 23, 2023.

4239

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date:

~~August~~May 5, ~~2022~~2023

Cohen & Steers, Inc.

/s/ Matthew S. Stadler

Name: Matthew S. Stadler

Title: Executive Vice President & Chief Financial Officer

Date:

~~August~~May 5, ~~2022~~2023

Cohen & Steers, Inc.

/s/ Elena Dulik

Name: Elena Dulik

Title: Senior Vice President & Chief Accounting Officer

4340


	Six Months Ended June 30, 2022
	Common Stock		Additional Paid-In Capital		Accumulated Deficit		Accumulated Other Comprehensive Income (Loss)		Treasury Stock		Total Stockholders' Equity		Redeemable Noncontrolling Interests
January 1, 2022	$	543	$	715,847	$	(231,967)	$	(5,886)	$	(223,354)	$	255,183	$	89,143
Dividends ($1.10 per share)	—		—		(55,153)		—		—		(55,153)		—
Issuance of common stock	7		793		—		—		—		800		—
Repurchase of common stock	—		—		—		—		(25,758)		(25,758)		—
Issuance of restricted stock units—net	—		2,641		—		—		—		2,641		—
Amortization of restricted stock units—net	—		22,863		—		—		—		22,863		—

Net income (loss)	—		—		93,974		—		—		93,974		(20,984)
Other comprehensive income (loss)	—		—		—		(5,165)		—		(5,165)		—
Net contributions (distributions) attributable to redeemable noncontrolling interests	—		—		—		—		—		—		117,839

June 30, 2022	$	550	$	742,144	$	(193,146)	$	(11,051)	$	(249,112)	$	289,385	$	185,998

	Six Months Ended June 30, 2021
	Common Stock		Additional Paid-In Capital		Accumulated Deficit		Accumulated Other Comprehensive Income (Loss)		Treasury Stock		Total Stockholders' Equity		Redeemable Noncontrolling Interests
January 1, 2021	$	535	$	670,142	$	(291,542)	$	(4,134)	$	(200,762)	$	174,239	$	50,665
Dividends ($0.90 per share)	—		—		(44,633)		—		—		(44,633)		—
Issuance of common stock	7		734		—		—		—		741		—
Repurchase of common stock	—		—		—		—		(21,337)		(21,337)		—
Issuance of restricted stock units—net	—		2,433		—		—		—		2,433		—
Amortization of restricted stock units—net	—		19,410		—		—		—		19,410		—

Net income (loss)	—		—		95,431		—		—		95,431		9,405
Other comprehensive income (loss)	—		—		—		(396)		—		(396)		—
Net contributions (distributions) attributable to redeemable noncontrolling interests	—		—		—		—		—		—		6,011

June 30, 2021	$	542	$	692,719	$	(240,744)	$	(4,530)	$	(222,099)	$	225,888	$	66,081


	As of June 30, 2022
	Notional Amount				Fair Value (1)
(in thousands)	Long		Short		Assets		Liabilities
Corporate derivatives:
Total return swaps - commodities	$	2,607	$	3,806	$	234	$	369
Total return swaps - equities	—		22,492		2,317		177
Forward contracts - foreign exchange	—		11,481		596		—
Total corporate derivatives	$	2,607	$	37,779	$	3,147	$	546
Derivatives held by consolidated investment vehicles:
Total return swaps - commodities	20,918		—		—		2,876


Total	$	23,525	$	37,779	$	3,147	$	3,422


	As of December 31, 2021
	Notional Amount				Fair Value (1)
(in thousands)	Long		Short		Assets		Liabilities
Corporate derivatives:
Total return swaps - commodities	$	2,549	$	3,810	$	94	$	17
Total return swaps - equities	—		22,899		—		867
Forward contracts - foreign exchange	—		11,969		209		3
Total corporate derivatives	$	2,549	$	38,678	$	303	$	887
Derivatives held by consolidated investment vehicles:
Total return swaps - commodities	10,931		—		387		—

Total	$	13,480	$	38,678	$	690	$	887


	Carrying Value		Notional Value - Hedges		Net Carrying Value		Net Carrying Value Assuming a 10% increase		Net Carrying Value Assuming a 10% decrease
Liquid seed investments—net	$	62,562	(26,298)		$	36,264	$	39,890	$	32,638
Illiquid seed investments—net	$	19,964	$	—	$	19,964	$	21,960	$	17,968