Analyst Note| Greggory Warren, CFA |
There was little in narrow-moat Cohen & Steers' first-quarter results that would alter our long-term view of the firm. We are leaving our $92 per share fair value estimate in place. Cohen & Steers closed out the March quarter with $102.1 billion in total AUM, down 4.2% sequentially but up 17.3% on a year-over-year basis. Net inflows of $756 million during the March quarter continued the trend of positive flows that started during the third quarter of 2019 (with a run rate of $2.5 billion in quarterly inflows on average over the past two years). Driven by ongoing demand for real estate funds, which we expect will continue to carry higher yields than most bond and money market funds, we continue to forecast low- to mid-single-digit organic AUM growth on average annually for Cohen & Steers during 2022-26, which should lead to mid-single-digit growth in managed assets.