Cohen & Steers Inc
NYSE:CNS
Cohen & Steers Inc
In the bustling world of asset management, Cohen & Steers Inc. has carved a distinctive niche for itself, predominantly focusing on real assets and alternative income investments. Founded in 1986, the firm swiftly developed a reputation as a pioneer in investing in real estate securities, which remains a cornerstone of its operations to this day. The company's journey has been characterized by strategic expansion into other disciplines including infrastructure, natural resources, preferred securities, and multi-strategy offerings. This diversity allows Cohen & Steers to cater to a wide array of investors—from individuals to large institutions—all seeking to enhance their portfolios with alternative income streams and diversification opportunities.
Cohen & Steers generates revenue through a structured asset management fee model. This involves charging clients a percentage of the assets under management (AUM) as well as performance-related fees when their investment portfolios achieve above-market returns. The success of Cohen & Steers' business model hinges on its ability to consistently deliver superior investment performance, thereby growing its AUM over time. Its investment strategies, deeply rooted in research and market analysis, are designed to capitalize on secular trends in real estate and other real assets. These strategies not only provide clients with potential inflation protection and stable income streams but also enable Cohen & Steers to thrive in the competitive asset management industry by continuously attracting and retaining capital.
In the bustling world of asset management, Cohen & Steers Inc. has carved a distinctive niche for itself, predominantly focusing on real assets and alternative income investments. Founded in 1986, the firm swiftly developed a reputation as a pioneer in investing in real estate securities, which remains a cornerstone of its operations to this day. The company's journey has been characterized by strategic expansion into other disciplines including infrastructure, natural resources, preferred securities, and multi-strategy offerings. This diversity allows Cohen & Steers to cater to a wide array of investors—from individuals to large institutions—all seeking to enhance their portfolios with alternative income streams and diversification opportunities.
Cohen & Steers generates revenue through a structured asset management fee model. This involves charging clients a percentage of the assets under management (AUM) as well as performance-related fees when their investment portfolios achieve above-market returns. The success of Cohen & Steers' business model hinges on its ability to consistently deliver superior investment performance, thereby growing its AUM over time. Its investment strategies, deeply rooted in research and market analysis, are designed to capitalize on secular trends in real estate and other real assets. These strategies not only provide clients with potential inflation protection and stable income streams but also enable Cohen & Steers to thrive in the competitive asset management industry by continuously attracting and retaining capital.
Revenue Growth: Full year revenue grew 6.9% to $554 million, with Q4 revenue up 2% sequentially to $143.8 million.
EPS Performance: Q4 EPS was $0.81, flat versus the prior quarter; full year EPS rose to $3.09 from $2.93 in 2024.
Net Inflows: The company posted net inflows for five of the past six quarters, including $1.28 billion in Q4 and $1.5 billion for the year.
Strong AUM and Pipeline: Ending AUM was $90.5 billion; the unfunded pipeline is near multiyear highs at $1.72 billion.
Stable Margins: Operating margin for Q4 was 36.4%, up slightly from the previous quarter.
Active ETFs Scaling: Active ETFs are gaining momentum, with accelerating adoption and total ETF AUM reaching $378 million.
Positive Outlook: Management sees opportunities in real estate, natural resource equities, and listed infrastructure, expecting favorable returns in 2026.
Expense Discipline: Compensation ratio and G&A growth are expected to remain controlled in 2026.
