Cohen & Steers Raises $70 Million in Gross Proceeds from At-the-Market Equity Offering

Rhea-AI Summary

Cohen & Steers, Inc. raised $70 million in gross proceeds through an at-the-market equity offering program. They sold over 1 million shares at an average price of $69.60 per share. After deducting expenses, the net proceeds are expected to be around $68.4 million. The funds will be used for general corporate purposes, including seeding track record strategies and investment vehicles.

Positive

• Cohen & Steers raised $70 million in gross proceeds through the ATM Program.
• 1,007,057 shares were sold at an average price of $69.60 per share.
• Expected net proceeds after expenses are approximately $68.4 million.
• The funds will be used for general corporate purposes, including seeding track record strategies and investment vehicles.

Negative

• None.

Insights

Financial Analyst

The recent move by Cohen & Steers to raise capital through an at-the-market equity offering indicates a strategic decision to bolster its financial position. By securing approximately $68.4 million in net proceeds, the firm enhances its liquidity, which can be pivotal in funding ongoing operations or investing in growth initiatives. It's notable that the transaction was executed at an average price of $69.60, which may reflect current market valuation perceptions. Investors should consider how the injection of capital could potentially improve the company's financial flexibility, particularly for seeding new investment vehicles, which may drive future revenue growth. However, this benefit needs to be weighed against the dilutive effect on existing shareholders, as the increase in outstanding shares could lead to potential earnings per share dilution.

Market Research Analyst

Cohen & Steers' decision to terminate the ATM Program post-transaction is a calculated one, likely reflecting the company's assessment that it has raised the necessary funds for the near term. Investors should take note of the company's intended use of proceeds for 'seeding track record strategies and investment vehicles,' as it underscores a commitment to expand its product offerings. The success of these strategies and the market's reception to new investment products will be important to monitor, as they could enhance the firm's competitive position and attract additional assets under management. However, the effectiveness of these investments and their impact on the company's market share will only become apparent with time.

Investment Strategist

The termination of the ATM Program by Cohen & Steers following this equity offering is an indicator of the company's confidence in its current capital structure. As an investor, it's important to understand the implications of such a capital raise. On one hand, the additional funds can be seen as positive, providing the company with the ability to seed new strategies that may attract more assets and generate additional fee income. On the other hand, investors should remain vigilant about the company's future capital allocation decisions and how they might affect returns. The strategic deployment of these funds into successful strategies is key for long-term shareholder value creation.

NEW YORK, April 22, 2024 /PRNewswire/ -- Cohen & Steers, Inc. (NYSE: CNS) has offered and sold 1,007,057 shares of its common stock (the "Shares") through its "at-the-market" equity offering program (the "ATM Program"). The Shares were offered and sold through BofA Securities, as sales agent, at an average price per share of $69.60. The expected net proceeds to Cohen & Steers, after deducting commissions and estimated offering expenses, are approximately $68.4 million. The sales of the Shares are expected to settle on April 24, 2024, subject to customary closing conditions. Cohen & Steers intends to use the net proceeds for general corporate purposes, including seeding track record strategies and investment vehicles.

Cohen & Steers will not offer or sell any additional shares of its common stock under the ATM Program and has terminated the program pursuant to notice delivered to BofA Securities.

About Cohen & Steers. Cohen & Steers is a leading global investment manager specializing in real assets and alternative income, including listed and private real estate, preferred securities, infrastructure, resource equities, commodities, as well as multi-strategy solutions. Founded in 1986, the firm is headquartered in New York City, with offices in London, Dublin, Hong Kong, Tokyo and Singapore.

Forward-Looking Statements
This press release 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 the Company'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 undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

Website: https://www.cohenandsteers.com
Symbols: NYSE: CNS

View original content:https://www.prnewswire.com/news-releases/cohen--steers-raises-70-million-in-gross-proceeds-from-at-the-market-equity-offering-302123826.html

SOURCE Cohen & Steers, Inc.

FAQ

How much did Cohen & Steers raise through the at-the-market equity offering program?

Cohen & Steers raised $70 million in gross proceeds through the at-the-market equity offering program.

How many shares were sold by Cohen & Steers in the ATM Program?

Cohen & Steers sold 1,007,057 shares through the at-the-market equity offering program.

What was the average price per share at which Cohen & Steers sold the Shares?

Cohen & Steers sold the shares at an average price of $69.60 per share.

What are the expected net proceeds for Cohen & Steers after deducting expenses?

The expected net proceeds for Cohen & Steers, after deducting expenses, are approximately $68.4 million.

What will Cohen & Steers use the net proceeds for?

Cohen & Steers intends to use the net proceeds for general corporate purposes, including seeding track record strategies and investment vehicles.