Cohen & Steers was upgraded to Buy by a leading equity research firm, which cited the firm’s compelling valuation following a period of market volatility and a favorable outlook for 2026. The upgrade note highlighted that, despite softer demand for REIT strategies in 2025, the firm’s long-term performance record and its 3.6% regular dividend yield provide an attractive income profile. Analysts pointed to the company’s pristine balance sheet—with $403 million in cash and no outstanding debt—as a key factor underpinning dividend security and the potential for a special distribution later this year.

In the fourth quarter, Cohen & Steers delivered as-adjusted earnings of $0.81 per share, matching the prior quarter, and full-year earnings of $3.09 per share, up 5.5% from $2.93 a year earlier. Revenue for Q4 rose 2% sequentially to $143.8 million, driven by higher average assets under management and $1.7 million in performance fees. Full-year revenue increased 6.9% to $554 million, while operating income climbed to $52.4 million in Q4 and $195.1 million for the year, boosting the operating margin to 36.4%. The effective fee rate held steady at 59 basis points, reflecting resilient pricing power across the firm’s flagship real estate and infrastructure strategies.

The firm reported net inflows of $1.28 billion in Q4 and $1.5 billion for 2025, underscoring continued investor interest in its real estate and alternative income vehicles. Open-end funds saw modest net inflows of $13 million, while non-U.S. SICAV vehicles attracted $89 million. Active ETFs recorded $175 million of inflows, including $150 million from institutional clients. Advisory mandates contributed $689 million from new mandates plus $86 million from existing clients, partially offset by one $124 million termination. Sub-advisory strategies added $30 million in net inflows, with two new mandates totaling $532 million. Management emphasized that net inflows persisted in five of the past six quarters following the Federal Reserve’s policy shift in September 2024.

For 2026, management anticipates holding the compensation ratio at approximately 40% and expects general and administrative expenses to grow in the mid-single-digit percentage range. The effective tax rate is forecast at 25.4%. Cohen & Steers plans to “harvest ROI” on recent investments in active ETFs, offshore SICAV vehicles and talent acquisition, while moderating balance-sheet funding for new product seed capital. The firm’s liquidity position is expected to normalize post-bonus payments, with year-end cash balances having risen by $39 million to $403 million. Executives reiterated confidence in an improving institutional pipeline and the potential for accelerated REIT earnings growth of roughly 8% in both 2026 and 2027.