CNS — Cohen & Steers, Inc.

Cohen & Steers Q2 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Adjusted Earnings Per Share (EPS): $0.85, up from $0.79 in Q1 and $0.73 in Q2 2025.
• Net Income: $44 million, an 8% increase from Q1 and an 18% increase from Q2 2025.
• Assets Under Management (AUM): Increased by approximately 8% to over $100 billion, driven by strong net inflows of $1.3 billion, marking one of the strongest flow quarters in recent history.
• Operating Margin: Improved to 36.3%.
• Revenue: Increased 5% to $152 million, while operating expenses rose 3% to $97 million, indicating effective cost management.

2. Strategic Updates and Business Highlights

• Net Inflows: Strongest in four and a half years, with U.S. Real Estate leading at $833 million. Other strategies, including multi-strategy Real Assets and global listed infrastructure, also saw significant inflows.
• Investment Performance: 41%, 91%, and 97% of AUM outperformed benchmarks over the last one, three, and five years, respectively, although U.S. REITs faced short-term underperformance due to specific sector challenges.
• Growth Initiatives: Active ETFs surpassed $1 billion in AUM, with plans for further expansion. The firm is also enhancing its international distribution, particularly in Asia and Europe.
• Non-Traded REIT Performance: The Cohen & Steers Income Opportunities REIT has outperformed its peers significantly since inception.

3. Forward Guidance and Outlook

• Expense Guidance: Maintaining expectations of compensation and benefits expenses at approximately 40% of revenues, with mid-single-digit growth in G&A expenses.
• Market Conditions: Anticipated continued interest in real assets, with a favorable macro backdrop for U.S. real estate and global infrastructure strategies.
• Pipeline: A robust $1.6 billion won/unfunded pipeline, with a healthy velocity of fundings and a diverse geographic reach.

4. Bad News, Challenges, or Points of Concern

• U.S. REIT Underperformance: Short-term underperformance attributed to specific sectors like cell tower REITs, raising concerns about the sustainability of recent inflows.
• Private Real Estate Fundraising: Down about 5% annualized this year, indicating challenges in the private market.
• Market Volatility: Recent geopolitical tensions and inflationary pressures could impact future performance and investor sentiment.

5. Notable Q&A Insights

• Demand for Real Estate: Strong demand anticipated in both wealth management and institutional channels, driven by recent performance and macroeconomic factors.
• International Distribution: Positive traction noted in markets like South Africa, Japan, and Korea, with ongoing efforts to enhance presence and capitalize on opportunities.
• ETF Strategy: Active ETFs are gaining traction, with a focus on performance and scaling to attract larger institutional investors. Fee rates for ETFs are competitive with existing open-end funds.
• Sub-Advisory Opportunities: Recent wins in Canada indicate growing interest in real assets strategies, with potential for further growth in this channel.

Overall, Cohen & Steers reported a strong quarter with solid financial results and strategic progress, though challenges in certain sectors and market conditions remain points of concern.