Strong Quarter for The Agency Group
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12 April 2019
MARCH QUARTER 2019
STRONG QUARTER FOR THE AGENCY GROUP
Highlights
• Strong March Quarter 2019 results across key operating metrics for The Agency Group
• Number and value of exchanges for the quarter up on the previous quarter and up
strongly on the prior period
• Gross Commission Income (GCI) for the quarter of $10.3m, the second highest on
record for the group
• New listings for the quarter of 1,040, a record for the group and up 14% on the prior
quarter (1)
• Market share in key markets of WA and NSW continue to grow and now at c.5% and
c.1% respectively
• Healthy agent recruitment pipeline, including the transition of 18 agents in the
Wollongong area to full company ownership post quarter end increasing number of
agents to 276
March Quarter 2019 % Change on PCP
Number of New Listings(1) 1,040
Value of Exchanges (m)(2) $613.4 30%
No. of Exchanges(2) 616 32%
GCI (m) (1) $10.3
Properties Under 4,304 11%
Management
No. of Agents 258 (7%)
1 – New Listing, GCI and Number of Agents for Sell Lease Property is only available from purchase. On this basis they have only
been included from 31 March 2018 and PCP comparison has not been provided. The Agency prepared on the basis that the
acquisition of Top Level Real Estate occurred effective 1 January 2017
2 – Value and number of exchanges prepared on the basis that the acquisition of Top Level Real Estate occurred effective 1
January 2017 and Sell Lease Property had occurred effective 1 January 2018.
Sales Performance
Against a backdrop of subdued market conditions and the quieter January period, The Agency
Group produced its second busiest quarter to date in terms of number of exchanges and GCI
and third in terms of value of exchanges.
The results represent significant increases over the PCP and has benefited from increases in:
• overall agent numbers;
• the proportion of agents operating under The Agency brand; and
• the performance of agents post their initial transition period.
During the period, the group had a number of high-profile sales, including 20B Tivoli Avenue,
Rose Bay, Sydney by The Agency’s Ben Collier - the highest sale result so far in Australia in
CY2019.
The group’s market share in its most established market, WA, increased to more than 5% over
the second half of the calendar year 2018.
Number of Exchanges (2) Value of Exchanges ($m) (2)
696
619 616 631 613
93
578 583
553 97
53 82
188 166 470
467
187 167
65
141 352
311 321 -
263 - - 603
204 - 218 533 530 532
431 450 -
- 391 386 405
119 326 321 352
311 106
- 263
204 - 218
119 106
Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19
The Agency SLP The Agency SLP
GCI ($m) (1)
PCP growth - the Agency 212% 159% 35% 30% 40%
11.3
10.3
1.9
9.0 8.8 1.6
2.0 1.4
6.3
5.7
5.2
3.6 9.4 8.8
7.0 7.4
5.7 6.3
2.0 5.2
3.6
2.0
Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19
The Agency SLP
Agent Network and Listings
The Agency Group continues to secure the significant talent, with a strong forward pipeline
of agents looking to join. At 31 March 2019, 191 agents were operating under the brand up
10% from 174 at the same time last year.
Recent additions to The Agency brand prior to 31 March 2019 include expansion into
Newcastle and surrounding region with the appointment of award-winning local agent, Cveta
Kolarovski and a team of four agents.
The Agency brand is now operating in Perth, Sydney, Melbourne, Gold Coast, Newcastle and
the Illawarra region. The Illawarra region has been further strengthened post 31 March with
an additional 18 agents that were operating in the area coming under company ownership
and increasing the total number of agents under The Agency brand to 209.
Following its acquisition in late February 2018, management have commenced rationalising
the agent network of Sell Lease Property ahead of expanding the offering nationally. This
rationalisation is partially due to new award conditions in WA that took effect in April 2019
and are expected to materially reduce the number of agents operating across the industry in
WA. This has resulted in the number of agents within Sell Lease Property reducing to 67 at 31
March 2019, with limited impact on exchanges or listings.
Reflecting the quality of the agent network, new listings for the quarter were 1,040, a record
quarter for the group and 14% up on the prior period – the previous record.
Significant listings include “Le Fanu” a landmark beachside property in Cottesloe with a price
guide of ~$17 million. The 125-year-old heritage-listed home features uninterrupted
beachfront views, has been lovingly restored and is currently on the market through The
Agency's Pamela Wilkinson.
Number of Agents (1) Number of New Listings (1)
285 285 283
276
258 1,040
90 914
100 97
102 67 832 260
739
277
245
138 569 184
525
109
185 188 193 191 345 780
70 174
59 234 262 637
138 525 569 587 555
109
59 70 345
234 262
Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19
The Agency SLP The Agency SLP
Property Management
Property management across the group continues to grow with 4,304 properties under management
at 31 March. The group continues to explore a number of opportunities to expand its property
management portfolio and leverage off its existing scale.
4,304
3,966 4,013 4,020
3,879 3,885
1,698 1,695
-
Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19
Commenting on the quarterly result, The Agency Managing Director Paul Niardone said:
“When considering the prevailing tough property market in Perth, Sydney and Melbourne, this is an
exceptional result for the Company.
“It is further evidence that our disruptive model attracts the best talent that can negotiate the best
results for our clients in any market conditions.
“Our recent integration of the Illawarra operations and expansion into Newcastle, illustrates that we
continue to outperform our peers who are finding it difficult to grow and recruit.
“We are continuing to defy what is being reported across the industry with higher auction clearance
rates being achieved consistently so far throughout 2019 while our market share continues to grow in
what remains a subdued market.
“Our sales agents are highly skilled and trained to handle all market conditions and are achieving
record prices. Our average selling price has been maintained while the market has dropped.
“When market conditions are challenging, skilled agents become the choice of vendors. We are
honoured to have some of the very best agents in Australia with a fiercely loyal client base of repeats
and referrals.”
If you require further information, please contact:
Investors Media
The Agency Australia Ltd Chapter One Advisors
Paul Niardone David Tasker / Colin Jacoby
T: +61 08 9204 7955 T: +61 433 112 936 / +61 439 980 359
E: dtasker@chapteroneadvisors.com.au