Cohen & Steers (CNS) Q3 2024 earnings summary

Executive summary

• Assets under management (AUM) reached $91.8 billion as of September 30, 2024, up from $80.7 billion at June 30, 2024, driven by $10.4 billion in market appreciation and $1.3 billion in net inflows, marking the first quarter of net inflows since Q1 2022.

• Net income for Q3 2024 was $39.7 million, with diluted EPS of $0.77, both increasing from Q2 2024.

• Strong investment performance over one, three, five, and ten-year periods, with 96% of AUM outperforming benchmarks over one year and 97% over three and five years.

• Strategic initiatives include launching active ETFs, expanding private real estate offerings, and realigning US wealth distribution.

• Open-end funds grew 27.6% year-over-year to $43.0 billion, institutional accounts increased 18.2% to $36.9 billion, and closed-end funds rose 15.9% to $11.9 billion.

Financial highlights

• Q3 2024 revenue was $133.4 million, up from $122.0 million in Q2 2024 and up 7.7% year-over-year.

• Operating income increased to $47.6 million from $42.5 million, with an adjusted operating margin of 35.7%.

• Net income attributable to common stockholders was $39.7 million, up 23.4% year-over-year.

• Liquidity totaled $348 million at quarter end, an increase from Q2.

• Expenses, as adjusted, rose to $85.8 million in Q3 2024 from $79.4 million in Q2 2024.

Outlook and guidance

• Compensation ratio expected to remain at 40.5% for the rest of the year.

• G&A expenses projected to increase 6%-7% for the year, mainly due to technology and infrastructure investments.

• Effective tax rate for Q4 expected to align with the year-to-date rate of 25.3%.

• Anticipates $1 billion in expected redemptions split between Q4 2024 and Q1 2025.

• Management anticipates continued dividend payments, with a declared quarterly dividend of $0.59 per share payable December 2, 2024.