CNSREIT-AR-2024 Final - Flipbook - Page 34
If we were required to register as an investment company, we would become subject to substantial regulation with
respect to our capital structure (including our ability to use borrowings), management, operations, transactions with
affiliated persons (as defined in the Investment Company Act), portfolio composition, including disclosure requirements
and restrictions with respect to diversification and industry concentration, and other matters. Compliance with the
Investment Company Act would, accordingly, limit our ability to make certain investments and require us to significantly
restructure our business plan, which could materially adversely affect our NAV and our ability to pay distributions to our
stockholders.
We depend on the Advisor to develop appropriate systems and procedures to control operational risk.
We depend on the Advisor and its affiliates to develop the appropriate systems and procedures to control operational
risk. Operational risks arising from mistakes made in the confirmation or settlement of transactions, from transactions not
being properly booked, evaluated or accounted for or other similar disruption in our operations may cause us to suffer
financial losses, the disruption of our business, liability to third parties, regulatory intervention or damage to our reputation.
We rely heavily on our financial, accounting and other data processing systems. The ability of our systems to accommodate
transactions could also constrain our ability to properly manage our portfolio. Generally, the Advisor will not be liable for
losses incurred due to the occurrence of any such errors.
We are subject to the risk that our trading orders may not be executed in a timely and efficient manner due to various
circumstances, including systems failure or human error. As a result, we could be unable to achieve the market position
selected by the Advisor or might incur a loss in liquidating our positions. Since some of the markets in which we may
effect transactions are over-the-counter or interdealer markets, the participants in such markets are typically not subject to
credit evaluation or regulatory oversight comparable to that which members of exchange-based markets are subject. We are
also exposed to the risk that a counterparty will not settle a transaction in accordance with its terms and conditions, thereby
causing us to suffer a loss.
We could incur financial losses, reputational harm and regulatory penalties if we or Cohen & Steers fail to implement
effective information security policies and procedures.
We are externally managed by the Advisor, a subsidiary of Cohen & Steers, and representatives of the Company and
the Advisor operate the Company9s business through Cohen & Steers9 information systems. Our business depends on the
effectiveness of our and Cohen & Steers9 information and cybersecurity policies and procedures to protect our network and
telecommunications systems and the data that reside in or are transmitted through such systems. As part of our normal
operations, we maintain and transmit proprietary information relating to our business operations and Cohen & Steers9
employees. We maintain a system of internal controls designed to provide reasonable assurance that malicious or
fraudulent activity, including misappropriation of our assets, fraudulent financial reporting and unauthorized access to
sensitive or confidential information, is either prevented or timely detected and remediated. However, our and Cohen &
Steers9 technology systems may still be vulnerable to unauthorized access or may be corrupted by cyberattacks, computer
viruses or other malicious software code, or authorized persons could inadvertently or intentionally release confidential or
proprietary information. The nature of these threats and the techniques used by cybercriminals are constantly evolving, can
originate from a wide variety of sources and are becoming increasingly sophisticated, including the use of
