Cohen & Steers (NYSE:CNS) reported first-quarter 2026 as-adjusted earnings of $0.79 per share, slightly below $0.81 in the prior quarter, as the asset manager posted modest revenue growth and higher ending assets under management (AUM) while expenses increased sequentially.
Financial results and margins
Interim CFO Mike Donohue said as-adjusted revenue rose 0.3% from the fourth quarter to $144.3 million, driven by higher average AUM and partially offset by two fewer days in the quarter. Donohue also noted that the previous quarter included $1.7 million of performance fees tied to certain institutional accounts, adding that the firm typically does not recognize such fees early in the year and has “few performance fee accounts.”
On expenses, Donohue attributed the increase in compensation and benefits to a year-to-date accrual true-up “to actual” that had reduced compensation expense in the fourth quarter. The compensation ratio was 40%, which he said was in line with prior guidance. Distribution and service fees rose due to higher average AUM, while G&A expense was “consistent with the prior quarter.”
Donohue reported an as-adjusted effective tax rate of 25.5% for the quarter and said liquidity totaled $343 million at quarter-end, down $60 million from the prior period. He said the liquidity decline was in line with prior years and driven by the firm’s annual incentive compensation cycle that occurs in the first quarter.
AUM rose on inflows and market appreciation
Ending AUM increased to $93.1 billion from $90.5 billion at the end of the fourth quarter. Donohue said the increase reflected positive net inflows during the quarter “primarily related to open-end funds,” along with $2.7 billion of market appreciation. Average AUM rose to $94.4 billion from $90.8 billion in the prior quarter.
CEO Joe Harvey said the quarter included net inflows of $497 million and an “unfunded pipeline of $1.7 billion,” which he characterized as having “good velocity with continued fundings and new mandates.”
Performance metrics and market backdrop
President and CIO Jon Cheigh highlighted performance metrics, saying 86% of AUM outperformed its benchmark over one year, and three- and five-year outperformance rates were both above 97%. Cheigh also said 95% of open-end fund AUM was rated four or five stars by Morningstar, up from 90% in the prior quarter.
Cheigh and Harvey both discussed market volatility tied to geopolitical developments. Cheigh said the firm entered 2026 expecting an acceleration and rebalancing of global growth with “a corresponding broadening of market leadership,” though he said the Middle East conflict “may have brought that market leadership shift into question.” He added that the firm’s expectation is that Middle East military de-escalation “began several weeks ago and will continue… over the course of the coming weeks and months.”
Cheigh provided performance context across real-asset segments during the quarter, stating that U.S. and global REITs were up about 4% and 1%, respectively, while listed infrastructure was up 8%. He said diversified real assets rose 12%, helped by commodities and natural resource equities, while preferred securities and fixed income “broadly declined slightly” amid renewed inflation concerns and the possibility of tighter policy for longer.
Flows by channel and strategy
Harvey said multi-strategy real assets inflows totaled $142 million, the strongest quarter since the third quarter of 2022. Preferred securities generated $133 million of net inflows, which he called the strongest quarter since the fourth quarter of 2021. Global listed infrastructure recorded its “fifth straight quarter of net inflows,” totaling $96 million after a record year in 2025.
He also said the firm has now posted positive organic growth in six of the past seven quarters and recorded a seventh consecutive quarter of net inflows into open-end funds. Harvey highlighted more than $300 million of U.S. open-end fund inflows and “broad-based contributions” of more than $100 million into each of U.S. real estate, preferred securities, and multi-strategy real assets strategies.
Active ETFs drew $224 million of third-party net flows in the quarter, while the firm’s international CCAVs posted $62 million of net inflows, with Harvey pointing to allocations in the U.K. and South Africa and demand for multi-strategy real assets and global listed infrastructure.
In institutional channels, Harvey said the advisory business had its second consecutive quarter of net inflows, totaling $210 million, including five new mandates totaling $287 million, partially offset by one $76 million termination. Sub-advisory saw $269 million of net outflows, including $164 million from Japan. Harvey said real estate flows in Japan have been challenged industry-wide amid flows to local bond and equity funds, but he added the firm has “slightly improved” its market share there.
Growth initiatives: ETFs, non-traded REIT, and private real estate
Harvey detailed progress on growth initiatives spanning active ETFs, offshore CCAV open-end funds, a non-traded REIT, and a recently launched listed-private-real-estate LP for institutions.
- Active ETFs: Harvey said total AUM for the firm’s first five ETFs is $675 million, with strong flows and good investment performance. He said the firm received its “first placement on a major broker-dealer platform” in the first quarter. Harvey also announced the planned conversion of the Future of Energy open-end fund to an ETF “sometime mid-year,” and said the firm intends to launch a version of its multi-strategy real assets portfolio later this year. He added the firm filed for ETFs as a share class to maintain “full optionality” to offer strategies in an ETF format.
- Non-traded REIT: Harvey said the Cohen & Steers Income Opportunities REIT has 11 properties owned or under contract totaling $650 million in assets and has produced 10.6% annualized returns since inception versus a 4.3% peer average. He attributed performance in part to the portfolio’s focus on open-air shopping centers and average occupancy of 97%.
- Listed/private real estate LP: Harvey said the firm’s LP vehicle combining core private property funds with listed REITs has $250 million of fundings or commitments and is earning support from a growing list of asset consultants.
In the Q&A, Harvey said the institutional advisory pipeline remained strong for a “third straight quarter” at $1.7 billion. He said the firm was awarded $574 million of new mandates in the quarter, had $45 million “won and funded” during the period, and saw another $490 million funded, which he cited as evidence of improving institutional activity.
Also in Q&A, Cheigh discussed catalysts for renewed real estate allocations, pointing to a combination of interest-rate expectations and improving supply-demand fundamentals. He said REIT earnings growth had lagged in recent years due in part to excess supply, but argued fundamentals are improving. Cheigh said the firm sees REIT earnings growth potentially moving from “2%, 3%, 4%” in prior years to “more like 5% or 6% this year, 7% or 8% next year,” adding that stable interest rates and attractive valuations are factors investors are weighing.
Donohue provided guidance for the remainder of 2026, saying the firm expects the compensation ratio to remain at 40%, G&A to rise in the “mid-single digits” versus the prior year, and the as-adjusted effective tax rate to remain consistent at 25.5%.
Harvey closed the call by saying the company expects to report second-quarter results in July.
About Cohen & Steers (NYSE:CNS)
Cohen & Steers, Inc is a publicly traded investment management firm specializing in real estate securities and alternative income strategies. Founded in 1986 by Martin Cohen and Robert Steers, the company has built a reputation for expertise in listed real estate investment trusts (REITs) and related equities. Headquartered in New York City, Cohen & Steers applies a research-driven approach to identify value and income opportunities across global property markets.
The firm offers a diverse range of investment products, including mutual funds, closed-end funds, and exchange-traded funds (ETFs).
