Cohen & Steers (CNS) investor relations material

Executive summary

• Net inflows of $1.6B marked a fifth consecutive quarter of organic growth and the strongest flow period since Q4 2021; annualized organic growth exceeded 6%.

• Ending AUM fell 4.2% QoQ to $95.9B as market depreciation and distributions offset inflows; average AUM rose 2.1% to $101.1B.

• The $1.9B institutional won and unfunded pipeline was the second-largest ever, with $700M of fundings reloaded and more than $1.1B in new mandates awarded.

• Management cited broadening demand for real assets, expanded access through new vehicles and global distribution, and a healthy pipeline as growth supports.

Financial highlights

• Adjusted diluted EPS was $0.89, up from $0.85 in Q2; GAAP diluted EPS was $0.81.

• Q3 revenue was $157.4M GAAP and $156.4M adjusted, up 3% QoQ and 11% YoY; higher average AUM and one additional day contributed to the QoQ increase.

• Adjusted net income was $46.5M versus $44.0M in Q2; GAAP net income attributable to common stockholders was $42.2M.

• Adjusted expenses rose $1.6M QoQ to $98.3M, mainly from employee compensation and distribution and service fees; higher incentive accruals were partly offset by lower G&A costs.

• Adjusted operating margin expanded to 37.2% from 36.3% in Q2; GAAP operating margin was 32.4%.

Outlook and guidance

• Expense guidance was maintained: compensation and benefits at ~40% of revenue, G&A growth in the mid-single digits versus 2025, and pro forma effective tax rate of 25%-26%.

• Global listed infrastructure EBITDA growth was projected at 9%, versus a 6%-7% historical average; natural resources earnings growth was projected at 20%, versus a 6%-8% historical average.

• Listed real estate fundamentals were improving, with reduced new supply and growing demand expected to support growth above historical norms.

• Approximately $400M of partial account rebalancing outflows from two institutional clients was expected; the changes were unrelated to investment performance.

• Growth initiatives include expanding distribution and vehicles, global engagement, and pursuit of the institutional pipeline.