Business Context and Reporting Period
This Form 13F-HR filing is submitted by Cohen & Steers Capital Management, Inc. for the reporting period ended September 30, 2011. The report was signed on November 14, 2011, by Lisa Phelan, Senior Vice President and Chief Compliance Officer. This is a 13F Combination Report, indicating that a portion of the holdings are reported here while other portions are reported by other managers, specifically the Frank Russell Company and Cohen & Steers Europe SA.
Key Financial Metrics
As a Form 13F filing, this document reports equity holdings rather than the operating financial performance (revenue, profit, cash flow) of Cohen & Steers, Inc. itself. The following metrics reflect the portfolio managed by the firm:
- Total Portfolio Value: $24,014,717,000 (approximately $24.0 billion).
- Total Number of Holdings: 455 entries.
- Top Holdings by Value:
- General Growth Properties: $44,479,891,000
- Kimco Realty Corp: $34,251,740,000
- Host Hotels & Resorts Inc: $32,438,906,000
- DCT Industrial Trust Inc: $33,007,506,000
- DDR Corp: $29,197,835,000
- Asset Class Focus: The portfolio is heavily concentrated in Real Estate Investment Trusts (REITs), including retail, residential, industrial, and hospitality sectors, as well as significant positions in closed-end funds and preferred securities.
Material Changes and Portfolio Composition
This filing provides a snapshot of holdings as of September 30, 2011, and does not contain comparative data against the prior quarter (June 30, 2011) to determine material changes in position size or portfolio composition. However, the data reveals a distinct investment strategy focused on income-generating assets:
- REIT Dominance: A significant portion of the portfolio value is allocated to REITs such as Equity Residential, Simon Property Group, Vornado Realty Trust, and UDR Inc.
- Preferred Securities: The manager holds substantial positions in preferred stocks, including various series from Barclays Bank, Huntington Bancshares, and Sunstone Hotel Properties.
- Closed-End Funds: The portfolio includes numerous closed-end funds from managers like BlackRock, Eaton Vance, PIMCO, and Nuveen, focusing on high income, convertible securities, and municipal bonds.
Guidance, Outlook, and Risks
Guidance and Outlook: Form 13F filings do not contain management guidance, earnings outlooks, or forward-looking commentary regarding the firm's future performance or market expectations.
Risks and Contingencies:
- Beneficial Ownership Disclaimer: The filing explicitly states that it is not an admission that Cohen & Steers, Inc. or its subsidiaries are the beneficial owners of the reported securities. The firm disclaims beneficial ownership pursuant to Rule 13d-4.
- Concentration Risk: The portfolio shows high concentration in the real estate sector, which may expose the managed assets to sector-specific economic downturns or interest rate sensitivity.
- Reporting Limitations: As a combination report, the full scope of the manager's holdings is not contained within this single document, requiring cross-referencing with other filings for a complete picture.
Important Facts for Investor Verification
- Portfolio Size: Verify the total reported value of approximately $24.0 billion against other regulatory filings to ensure consistency.
- Top Concentrations: Note the significant exposure to General Growth Properties, Kimco Realty, and Host Hotels & Resorts, which represent the largest single positions.
- Reporting Scope: Confirm that this is a combination report; investors should review filings from the Frank Russell Company and Cohen & Steers Europe SA to see the full extent of the manager's holdings.
- Ownership Status: Understand that the reported shares are held in a discretionary capacity and do not necessarily imply beneficial ownership by the parent company, Cohen & Steers, Inc.
- Asset Class: Recognize that the portfolio is specialized in real estate and income-focused securities, differing from a broad-market equity index.