Cohen & Steers: Q4 and Full Year 2018 Earnings Presentation

2

Summary of Fourth Quarter and Full Year 2018 Results

Financial

Results,

as adjusted

• Net income was $26.7 million in Q4 2018

versus $30.3 million in Q3 2018

• Diluted EPS of $0.56 in Q4 2018 versus

$0.64 in Q3 2018

• Operating margin was 36.8% in Q4 2018

versus 40.2% in Q3 2018

Assets Under

Management

• December 31, 2018 AUM was $54.8 billion

versus $60.1 billion at September 30, 2018

• Average AUM was $57.6 billion for Q4 2018

versus $60.4 billion for Q3 2018

Flows

• Net outflows of $1.2 billion in Q4 2018

versus net outflows of $76 million in Q3 2018

• Net inflows in advisory

• Net outflows in subadvisory ex. Japan,

Japan subadvisory and open-end funds

Please see pages 16-17 of this presentation for a reconciliation of the as adjusted financial measures to their most directly comparable U.S. GAAP financial measures.

• Net income was $113.8 million in FY 2018

versus $97.0 million in FY 2017

• Diluted EPS of $2.40 in FY 2018 versus

$2.07 in FY 2017

• Operating margin was 39.1% in FY 2018

versus 40.9% in FY 2017

• December 31, 2018 AUM was $54.8 billion

versus $62.1 billion at December 31, 2017

• Average AUM was $59.0 billion in FY 2018

versus $60.3 billion in FY 2017

• Net outflows of $1.2 billion in FY 2018

versus net inflows of $3.9 billion in FY 2017

• Overall, 1.9% organic decay rate in FY 2018

versus 6.7% organic growth rate in FY 2017

Full Year 2018 4th Quarter 2018

3

Revenue

Expenses

Financial Results, as adjusted

$99.3 $94.4 $94.2 $98.2 $93.6

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

$58.1 $56.1 $57.8 $58.7 $59.2

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Diluted

Earnings per

Share

Operating

Margin

41.5% 40.6% 38.7% 40.2% 36.8%

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

$0.55 $0.62 $0.59 $0.64 $0.56

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

$ in millions, except earnings per share and percentages

The presentation of 2017 amounts has been recast to reflect the Company's adoption of the new revenue recognition accounting standard on January 1, 2018.

Please see pages 16-17 of this presentation for a reconciliation of the as adjusted financial measures to their most directly comparable U.S. GAAP financial measures.

$42.1 $40.0 $40.3 $42.3 $40.4

$26.0 $25.2 $24.8

$25.9 $24.5

$20.4 $19.2 $19.1

$19.9 $19.1

$7.9 $7.4 $7.3

$7.5 $7.0

$2.9 $2.6 $2.7

$2.7 $2.7

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Open-endFund Fees

InstitutionalFees

Closed-endFund Fees

Distribution &Service Fees

Portfolio Consultingand Other

4

$99.3 $94.4 $94.2 $98.2 $93.6

Revenue, as adjusted $ in millions

The presentation of 2017 amounts has been recast to reflect the Company's adoption of the new revenue recognition accounting standard on January 1, 2018.

Please see pages 16-17 of this presentation for a reconciliation of the as adjusted financial measures to their most directly comparable U.S. GAAP financial measures.

Totals may not foot due to rounding.

Expenses, as adjusted $ in millions

5

$32.2 $31.2 $32.5 $33.1 $34.5

$13.6 $12.8 $12.4 $13.2 $11.6

$11.2 $11.1

$11.6 $11.3 $12.0

$1.1 $1.1

$1.2 $1.1 $1.1

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Employee Compensation and Benefits Distribution and Service Fees

General and Administrative Depreciation and Amortization

$58.1 $56.1 $57.8 $58.7 $59.2

The presentation of 2017 amounts has been recast to reflect the Company's adoption of the new revenue recognition accounting standard on January 1, 2018.

Please see pages 16-17 of this presentation for a reconciliation of the as adjusted financial measures to their most directly comparable U.S. GAAP financial measures.

Totals may not foot due to rounding.

6

$62.1 $58.5 $60.2 $60.1

$54.8

$62.0

$59.2 $58.7

$60.4

$57.6

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Ending AUM Avg. AUM

Assets Under Management $ in billions

7

Assets Under Management Across Vehicle, Strategy, and Client Domicile

Open-end Funds 37.8%

U.S. Real Estate 42.2%

North America 73.8%

Advisory 22.0%

Preferred Securities 21.6%

Japan 15.4%

Closed-end Funds 15.3%

Global/International Real Estate 19.8%

EMEA 5.6%

Japan Subadvisory 14.8%

Global Listed Infrastructure 11.8%

APAC ex. Japan 5.2% Subadvisory ex. Japan 10.1%

Other 4.5%

ByVehicle

ByStrategy

ByClient Domicile

As of December 31, 2018.

8

($2.8) ($3.4)

($2.7) ($2.5)

($4.4)

$3.1 $3.3 $2.9 $2.4 $3.2

$0.2 ($0.1)

$0.2 ($0.1)

($1.2)

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Inflows Outflows Net Flows

Total Firm Net Flows $ in billions

1.5% (0.6%) 1.2% (0.5%) (7.9%) Organic Growth/

(Decay)

Totals may not foot due to rounding.

9

$2.7 $2.5 $2.1 $2.0

$2.3

($1.8)

($2.5) ($2.0)

($1.6)

($3.3)

$0.8

($0.0) $0.1 $0.4

($1.0)

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Open-end Funds

Advisory

Net Flows by Investment Vehicle $ in billions

$0.1

$0.4

$0.5

$0.3

$0.9

($0.3)

($0.1) ($0.1) ($0.2)

($0.6)

($0.2)

$0.3

$0.5

$0.1

$0.3

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Inflows

Outflows

Net Flows

14.4% (17.0%) (0.1%) 2.3% 7.4%

9.6% 4.8% 16.1% 10.0% (5.6%) Organic Growth/

(Decay)

Organic Growth/

(Decay)

Totals may not foot due to rounding.

10

$0.2 $0.3 $0.2

$0.0 $0.1

($0.2)

($0.3)

($0.4) ($0.4)

($0.3)

$0.1

($0.0)

($0.3)

($0.3)

($0.2)

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Subadvisory ex. Japan

Japan Subadvisory

Net Flows by Investment Vehicle $ in billions

$0.1 $0.1 $0.0 $0.0 $0.0

($0.6)

($0.4)

($0.2)

($0.3) ($0.3)

($0.5)

($0.3)

($0.2)

($0.3) ($0.3)

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Inflows

Outflows

Net Flows

4.0% (12.1%) (2.1%) (16.4%) (21.1%)

(13.1%) (12.6%) (6.2%) (11.9%) (16.0%) Organic Growth/

(Decay)

Organic Growth/

(Decay)

Totals may not foot due to rounding.

11

$1.2 $1.3

$1.0 $1.0 $1.1

($1.5) ($1.6)

($1.1) ($1.0)

($1.4)

($0.4) ($0.3) ($0.1) ($0.0)

($0.3)

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

U.S. Real Estate

Preferred Securities

Net Flows by Investment Strategy $ in billions

Inflows

Outflows

Net Flows

(5.4%) (4.5%) (4.2%) (1.2%) (0.2%)

Organic Growth/

(Decay)

Organic Growth/

(Decay)

$1.1 $1.2 $1.0 $1.0

$1.3

($0.8) ($1.0) ($0.9) ($0.8)

($2.0)

$0.3 $0.2 $0.1 $0.2

($0.7)

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

10.3% (20.4%) 6.3% 2.5% 5.3%

Totals may not foot due to rounding.

12

Global/International Real Estate

Global Listed Infrastructure

Net Flows by Investment Strategy $ in billions

$0.2

$0.3

$0.1 $0.1 $0.1

($0.1) ($0.1)

($0.1)

($0.1)

($0.2)

$0.1

$0.2

($0.0)

$0.0

($0.0)

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Inflows

Outflows

Net Flows

(1.4%) 0.9% (1.0%) 10.4% 4.3%

Organic Growth/

(Decay)

Organic Growth/

(Decay)

$0.6 $0.5

$0.7

$0.2

$0.6

($0.3) ($0.3) ($0.3) ($0.3)

($0.8)

$0.2 $0.2

$0.4

($0.1) ($0.2)

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

(3.4%) (5.8%) 14.5% 6.5% 9.1%

Totals may not foot due to rounding.

13

($0.6)

($0.2) ($0.3)

($0.2) ($0.4)

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Open-end Funds Japan Subadvisory

($0.1) ($0.1) ($0.1) ($0.1) ($0.1)

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Closed-end Funds

($1.3)

($0.9) ($1.0) ($0.8) ($0.8)

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Total

Distributions by Investment Vehicle $ in billions

($0.6) ($0.6) ($0.6) ($0.4)

($0.4)

Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Investment Performance

14

1Past performance is no guarantee of future results. Outperformance is determined by annualized investment performance of all accounts in each investment strategy measured

gross of fees and net of withholding taxes in comparison to performance of each account’s reference benchmark measured net of withholding taxes, where applicable. This is not

investment advice and may not be construed as sales or marketing material for any financial product or service sponsored or provided by Cohen & Steers. 2Past performance is no guarantee of future results. Based on independent rating by Morningstar, Inc. of investment performance of each Cohen & Steers-sponsored open-end U.S.-

registered mutual fund for all share classes for the overall period as of December 31, 2018. Overall Morningstar rating is a weighted average based on the 3-year, 5-year and 10-

year Morningstar rating. Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution

percentages. This is not investment advice and may not be construed as sales or marketing material for any financial product or service sponsored or provided by Cohen & Steers.

See Legal Disclosures on page 18 of this presentation for more information about our investment performance.

1-Y

ea

r 3

-Ye

ar

5-Y

ea

r 1

0-Y

ea

r

96% 94% 97%

12/31/2016 12/31/2017 12/31/2018

76% 100% 98%

12/31/2016 12/31/2017 12/31/2018

95% 100% 98%

12/31/2016 12/31/2017 12/31/2018

% of Total AUM in Outperforming Strategies1 % of U.S. Open-End Fund AUM by Morningstar Rating2

As of 12/31/2018

1% 16%

83%

1 or 2 Star 3 Star 4 or 5 Star

44%

95% 93%

12/31/2016 12/31/2017 12/31/2018

Cash, Cash Equivalents, U.S. Treasuries and Seed Investments $ in millions

15

$193.4

$168.6

$193.7

$164.5

$92.7

$49.6

$49.7

$63.4

$63.0

$69.1

$76.7

$70.8

December 31, 2017 March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018

Cash U.S. Treasuries Seed Investments

$231.6 $262.8 $290.7 $213.2 $256.9

Totals may not foot due to rounding.

1 Classified as held to maturity as of 12/31/18 with maturity dates not exceeding 18 months. 2 Excludes certain illiquid seed investments.

1 2

16

Reconciliation of U.S. GAAP Net Income Attributable to Common Stockholders and U.S. GAAP Earnings per Share to Net Income

Attributable to Common Stockholders, As Adjusted, and Earnings per Share, As Adjusted Three Months Ended Year Ended

December 31,

2017

March 31,

2018

June 30,

2018

September 30,

2018

December 31,

2018

December 31,

2017

December 31,

2018

Net income attributable to common

stockholders, U.S. GAAP $20,398 $27,586 $29,959 $30,790 $25,561 $91,939 $113,896

Deconsolidation (1) (1,216) 481 485 (63) 2,489 (2,350) 3,392

Results from seed investments (2) (471) 1,774 (2,154) (551) 3,091 (1,124) 2,160

Accelerated vesting of restricted stock units (3) 224 — — — — 522 —

General and administrative (4) — 871 — — — (1,018) 871

Foreign currency exchange gain (5) — — (953) (217) (1,100) — (2,270)

Tax adjustments (6) 7,120 (1,703) 528 313 (3,338) 9,068 (4,200)

Net income attributable to common stockholders,

as adjusted $26,055 $29,009 $27,865 $30,272 $26,703 $97,037 $113,849

Diluted weighted average shares outstanding 47,300 47,152 47,311 47,524 47,562 46,979 47,381

Diluted earnings per share, U.S. GAAP $0.43 $0.59 $0.63 $0.65 $0.54 $1.96 $2.40

Deconsolidation (1) (0.03) 0.01 0.01 —* 0.05 (0.05) 0.07

Results from seed investments (2) (0.01) 0.04 (0.04) (0.01) 0.06 (0.02) 0.05

Accelerated vesting of restricted stock units (3) 0.01 — — — — 0.01 —

General and administrative (4) — 0.02 — — — (0.02) 0.02

Foreign currency exchange gain (5) — — (0.02) (0.01) (0.02) — (0.05)

Tax adjustments (6) 0.15 (0.04) 0.01 0.01 (0.07) 0.19 (0.09)

Diluted earnings per share, as adjusted $0.55 $0.62 $0.59 $0.64 $0.56 $2.07 $2.40

Three Months Ended Year Ended

December 31, 2017 March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 December 31, 2017 December 31,2018

Transition tax liability in connection with the Tax Cuts and Jobs Act $8,432 $— ($123) $— $— $8,432 ($123)

Remeasurement of deferred and other tax balances 4,300 — — — — 4,300 —

Reversal of certain liabilities associated with unrecognized tax benefits (4,737) — — — (2,758) (3,772) (2,758)

Delivery of restricted stock units — (1,003) 56 — — 49 (947)

Tax-effect of non-GAAP adjustments (49) (700) 595 313 9 888 217

Other tax related items (826) — — — (589) (829) (589)

Total tax adjustments $7,120 ($1,703) $528 $313 ($3,338) $9,068 ($4,200)

*Totals may not foot due to rounding.

* Amounts round to less than $0.01 per share.

(1) Represents amounts related to the deconsolidation of seed investments in Company-sponsored funds.

(2) Represents (i) dividend income and realized (gains) losses on seed investments in Company-sponsored funds, (ii) the Company's proportionate share of the results of operations of seed investments classified as

equity method investments, including realized and unrealized (gains) losses, and (iii) realized and unrealized (gains) losses on unconsolidated seed investments.

(3) Represents amounts related to the accelerated vesting of certain restricted stock units due to retirements.

(4) Represents expenses associated with the evaluation of a potential business transaction that the Company did not pursue in the first quarter of 2018 and refunds of foreign withholding taxes in 2017.

(5) Represents net foreign currency exchange gains associated with U.S. dollar-denominated assets and liabilities held by certain foreign subsidiaries. Prior year U.S. GAAP amounts have not been recast to conform

with the current period presentation as the impact to results was not material.

(6) Tax adjustments are summarized in the following table:

Non-GAAP Reconciliation $ in thousands, except per share data

17

Non-GAAP Reconciliation $ in thousands, except percentages

(1) Represents amounts related to the deconsolidation of seed investments in Company-sponsored funds.

(2) Represents (i) dividend income and realized (gains) losses on seed investments in Company-sponsored funds, (ii) the Company's proportionate share of the results of operations of seed investments classified as

equity method investments, including realized and unrealized (gains) losses, and (iii) realized and unrealized (gains) losses on unconsolidated seed investments.

(3) Represents net foreign currency exchange gains associated with U.S. dollar-denominated assets and liabilities held by certain foreign subsidiaries. Prior year U.S. GAAP amounts have not been recast to conform

with the current period presentation as the impact to results was not material.

(1) The presentation of 2017 amounts has been recast to reflect the Company's adoption of the new revenue recognition accounting standard on January 1, 2018.

(2) Represents amounts related to the deconsolidation of seed investments in Company-sponsored funds.

(3) Represents amounts related to the accelerated vesting of certain restricted stock units due to retirements.

(4) Represents expenses associated with the evaluation of a potential business transaction that the Company did not pursue in the first quarter of 2018 and refunds of foreign withholding taxes in 2017.

Reconciliation of U.S. GAAP Operating Income and U.S. GAAP Operating Margin to Operating Income, As Adjusted and

Operating Margin, As Adjusted Three Months Ended Year Ended

December 31,

2017

March 31,

2018

June 30,

2018

September 30,

2018

December 31,

2018

December 31,

2017

December 31,

2018

Revenue, U.S. GAAP (1) $99,454 $94,464 $94,410 $98,331 $93,906 $378,696 $381,111

Deconsolidation (2) (148) (51) (194) (180) (269) (403) (694)

Revenue, as adjusted $99,306 $94,413 $94,216 $98,151 $93,637 $378,293 $380,417

Expenses, U.S. GAAP (1) $58,566 $57,245 $58,123 $59,108 $59,597 $223,950 $234,073

Deconsolidation (2) (274) (251) (347) (373) (437) (789) (1,408)

Accelerated vesting of restricted stock units (3) (224) — — — — (522) —

General and administrative (4) — (871) — — — 1,018 (871)

Expenses, as adjusted $58,068 $56,123 $57,776 $58,735 $59,160 $223,657 $231,794

Operating income, U.S. GAAP $40,888 $37,219 $36,287 $39,223 $34,309 $154,746 $147,038

Deconsolidation (2) 126 200 153 193 168 386 714

Accelerated vesting of restricted stock units (3) 224 — — — — 522 —

General and administrative (4) — 871 — — — (1,018) 871

Operating income, as adjusted $41,238 $38,290 $36,440 $39,416 $34,477 $154,636 $148,623

Operating margin, U.S. GAAP (1) 41.1% 39.4% 38.4% 39.9% 36.5% 40.9% 38.6%

Operating margin, as adjusted 41.5% 40.6% 38.7% 40.2% 36.8% 40.9% 39.1%

Reconciliation of U.S. GAAP Non-operating Income (Loss) to Non-operating Income (Loss), As Adjusted

Three Months Ended Year Ended

December 31,

2017

March 31,

2018

June 30,

2018

September 30,

2018

December 31,

2018

December 31,

2017

December 31,

2018

Non-operating income (loss), U.S. GAAP $2,839 ($199) ($778) $1,047 ($3,329) $5,654 ($3,259)

Deconsolidation (1) (1,750) (1,057) 4,722 803 2,584 (3,283) 7,052

Results from seed investments (2) (471) 1,774 (2,154) (551) 3,091 (1,124) 2,160

Foreign currency exchange gain (3) — — (953) (217) (1,100) — (2,270)

Non-operating income (loss), as adjusted $618 $518 $837 $1,082 $1,246 $1,247 $3,683

18

Legal Disclosures

This presentation and other statements that Cohen & Steers may make may contain forward-looking statements within the meaning of

Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect

management's current views with respect to, among other things, the Company's operations and financial performance. You can identify

these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should,"

"seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates" or the negative versions of these words or other comparable

words. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that

could cause actual outcomes or results to differ materially from those indicated in these forward-looking statements. The Company believes

that these factors include, but are not limited to, the risks described in the Risk Factors section of the Company's Annual Report on Form 10-

K for the year ended December 31, 2017 (Form 10-K), which is accessible on the Securities and Exchange Commission's website at

www.sec.gov and on the Company's website at www.cohenandsteers.com. These factors are not exhaustive and should be read in

conjunction with the other cautionary statements that are included in the Company's Form 10-K and other filings with the Securities and

Exchange Commission. The Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a

result of new information, future developments or otherwise.

This presentation contains non-GAAP financial measures that we believe are meaningful in evaluating the Company’s performance. For

disclosures on these non-GAAP financial measures and their U.S. GAAP reconciliations, you should refer to the Non-GAAP Reconciliation

contained on pages 16-17 of this presentation.

Investment Performance:

© 2019 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers;

(2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content

providers are responsible for any damages or losses arising from any use of this information. Morningstar calculates its ratings based on a

risk-adjusted return measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads, and

redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each

category receive five stars, the next 22.5% receive four stars, the next 35% receive three stars, the next 22.5% receive two stars and the

bottom 10% receive one star.

Copyright © 2019 Cohen & Steers, Inc. All rights reserved.