CNS AR24 Digital - Book - Page 52
Investment Commitments
We have committed to invest up to a total of $175.0 million in certain of our investment vehicles. Refer to Note 14,
Commitments and Contingencies, in the notes to the consolidated financial statements included in Part IV, Item 15 of this
filing for further discussion.
Dividends
Subject to the approval of our board of directors, we anticipate paying dividends. When determining whether to pay a
dividend, we consider general economic and business conditions, our strategic plans, our results of operations and financial
condition, cash flow and liquidity, contractual, legal and regulatory restrictions on the payment of dividends, if any, by us and
our subsidiaries and such other factors deemed relevant.
On February 20, 2025, we declared a quarterly dividend on our common stock in the amount of $0.62 per share. This
dividend will be payable on March 13, 2025 to stockholders of record at the close of business on March 3, 2025.
Contingencies
Due to the uncertainty with respect to the timing of future cash flows associated with unrecognized tax benefits at
December 31, 2024, the Company is unable to reasonably estimate when cash settlement with the respective taxing
authorities will occur. Therefore, $1.3 million of gross unrecognized tax benefits have been excluded from the contractual
obligations table above. See Note 15, Income Taxes, in the notes to the consolidated financial statements included in Part IV,
Item 15 of this filing.
Net Capital Requirements
Several of our subsidiaries are subject to minimum net capital requirements by the local laws and regulations to which
they are subject. As of December 31, 2024, each of our subsidiaries subject to a minimum net capital requirement satisfied
the applicable requirement. See Note 12, Regulatory Requirements, in the notes to the consolidated financial statements
included in Part IV, Item 15 of this filing.
Critical Accounting Estimates
The preparation of our consolidated financial statements in accordance with accounting principles generally accepted in
the United States of America requires us to make certain estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosure of contingent assets and liabilities at the dates of the consolidated financial statements and
the reported amounts of revenue and expenses during the reporting periods. Management believes the estimates used in
preparing the consolidated financial statements are reasonable and prudent. Actual results could differ from those estimates.
Our significant accounting policies are disclosed in Note 2, Summary of Significant Accounting Policies, in the notes to
the consolidated financial statements included in Part IV, Item 15 of this filing and should be read in conjunction with the
summarized information below. Management considers the following accounting estimates critical to an informed review of
our consolidated financial statements as they require management to make certain judgments about matters that may be
uncertain at the time the estimates were determined.
Valuation of Investments
There is no established market for private real estate investments, and there may not be any comparable public market
valuations. As a result, the valuation of a private real estate investment may be based on subjective information and is subject
to inherent uncertainties, and the resulting values may differ from values that would have been determined had a ready
market existed for such investments, from values placed on such investments by other investors and from prices at which
such investments may ultimately be sold.
We have retained an independent valuation services firm to assist in the determination of the fair value of certain of our
private real estate investments. Each real property investment is valued no less than quarterly in accordance with the
applicable governing documents. Limited partnerships that hold real property investments are valued using the valuation
methodology we deem most appropriate and consistent with industry best practices and market conditions. We expect the
primary methodology used to value real property investments will be the income approach, whereby value is derived by
determining the present value of an asset9s expected stream of future cash flows (for example, discounted cash flow analysis).
Consistent with industry practices, the income approach incorporates actual contractual lease income, professional judgments
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