AGM Presentation & Update
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Annual General Meeting
16 November 2023
FY23 AGM Presentation 2
Managing Director AGM Presentation & Update
FY23 Key Takeaways FY23 AGM Presentation 3
$(1.30M) $76.9M
Underlying EBITDA1 Revenues from Ordinary Activities
(FY22: +$3.85M) (FY22 : $72.7M)
$5.3B 5,734
Gross Value of Properties Sold No. of Properties Sold
(FY22 : $5.9B) (FY22 : 5,709)
$95.4M 399
GCI2 No of Agents
(FY22 : $102.5M) (30 June 2022: 393)
1. Underlying adjusted for the impact of AASB16 Leasing Standard, Gain on Sale and other one off items.
2. Gross Commission Income (“GCI”) is the fees the vendor pays for the sale of a property.
FY23 AGM Presentation 4
Stable agent
productivity against a $102.5m
fall in market volumes 5,7095,734
583,087
570,566
1.23%
$95.5m
underpinned market 4,964 0.98%
$80.7m
share growth
464,945
0.87%
414,723
384,183
0.76%
3,147 0.63% $47.9m
$37.9m
2,407
0.98% to 1.23% Increase in National Market Share in FY23
Although we are increasing national market share, state mix of
sales and average selling price movements have impacted
Gross Sales Volume and lower Gross Commission Income.
WA Average Sale Price in the period was +7.6% in FY23,
while NSW Average Sale Price was -5.7% in FY23 which are
No of Properties Sold National Transaction Volume* National Market Share Gross Commission Income
both broadly in line with market movements (+6.0% and -5.3%
($M)^
respectively).
FY19 FY20 FY21 FY22 FY23
* Source: CoreLogic Economist Park (Jul 2023).
National Market Share Source: The Agency # of Sales / Estimated Properties sold per CoreLogic Economist Park (Jul 2023)
Note – recent months sales are subject to revision by CoreLogic
^ Gross Commission Income (“GCI”) is the fees the vendor pays for the sale of a property.
FY23 AGM Presentation 5
A growing brand now with
414 agents at 31 October
2023 with presence across
6 states and territories.
Across FY23, the broader industry saw a number of lower performing agents exit
the industry as a result of the tough operating environment on the East Coast. The
Agency achieved good recruitment success in Western Australia during the period
as we focus on gaining market share in the premium western suburb markets.
Following the July 2022 entry into the Tasmanian market, in December 2022, The
Agency expanded its presence to Rockhampton and Capricorn Coast in QLD as
part of our objective to have a stronger local presence in regional powerhouses to
better service our clients at the local and national levels.
In May 2023, The Agency announced the joining of independent Devine Real Estate
to The Agency. Located across 4 offices across Inner West of Sydney selling over
$250m in properties annually, this expansion was in conjunction with MDC Trilogy
Group Alliance.
On 1 August, The announced the joining of independent Coleman Estate Agents to
The Agency. Located in Toukley on the Central Coast region in NSW, the office led
by Ron Coleman sells over $100m in properties annually and is a logical expansion
from our existing office in Terrigal on the southern area of Central Coast.
FY23 AGM Presentation 6
Over 9,000 investment properties
managed by The Agency
Following the acquisition of Bushby Property Group, and the re-establishment of the Western
Australia property management business, The Agency has grown to 5,024 properties under
management as at 31 October 2023.
Since its announcement, MDC Trilogy Group have deployed nearly $25m in purchasing rent roll
assets across NSW and Queensland. These purchased rent roll assets comprise of over 4,000
properties under management which are now managed by The Agency under a services
arrangement.
Combined, the 9,000 plus managed properties represent an estimated $8 billion of Australian’s
property investors wealth and has the ability for Landlords with a geographically dispersed
portfolio the opportunity to have all their properties managed by a single company. The
increased portfolio scale enables greater cost synergies across The Agency owned portfolio.
FY23 AGM Presentation 7
Change in sales volumes, four months to October 2023
FYTD24
Market Sales NSW 3.2%
Volume VIC 1.6%
QLD 0.6%
In the 4 months to 31 October June
2023, Australian market volumes have
increased +2.1% from prior year period SA 8.4%
levels.
The Agency has recorded better than WA 3.7%
system performance with volumes
increasing +10.7%. This has led to
increased market share of national TAS -2.7%
transactions.
ACT -8.6%
Source: CoreLogic
+2.1% +4.5% -2.0%
Note – recent months sales are subject to revision by CoreLogic
Australia Combined Regionals Combined Capitals
FY23 AGM Presentation 8
Change in dwelling values, three months to October 2023
Last 3 Months
Dwelling Value Sydney 2.5%
Price Movement Melbourne 1.2%
Brisbane 3.8%
In the 3 months to 31 October,
Australian prices increased 2.3%,
easing slightly from a recent higher of Adelaide 4.2%
3.1% in the June 2023 quarter.
Perth 4.6%
Hobart 0.3%
Canberra 0.7%
Source: CoreLogic
+2.3% +1.5% +2.6%
Australia Combined Regionals Combined Capitals
FY23 AGM Presentation 9
Annual change in rental rates to October 2023
Annual Rental
Movement Sydney 9.9%
Melbourne 11.8%
Brisbane 7.9%
In the 12 months to 31 October,
Australian rental rates changed 8.1%
Adelaide 7.0%
Perth 13.2%
Hobart -3.3%
Canberra -3.0%
Source: CoreLogic
+8.1% +4.0% +9.7%
Australia Combined Regionals Combined Capitals
FY23 AGM Presentation 10
Business Performance Update
4 months to 31 4 Months to 31 Variance
October 2023 October 2022
# of Listings 2,282 2,152 +6.0%
# of Properties Sold 2,071 1,861 +10.7%
Gross Sales Volume $2.1b $1.7bn +22.4%
Gross Commission Income (GCI) $36.8m $30.8m +19.4%
The Agency has outperformed that national market number of properties sold, with 10.7% increase in
transactions, compared to 2.1% growth in market. The Agency had 414 agents as at 31 October 2023, up
from 399 Agents reported at 30 June 2023.
A return to a greater portion of East Coast Sales has assisted the Average selling price increase of 10.8%,
which has assisted the growth of GCI of 19.4% over the first 4 months of the financial year. Circa 10% of the
GCI growth has come from growth in existing geographical locations, with the remainder growth is from new
geographical regions.
Pleasingly, this GCI Growth, along with disciplined cost control has enabled a return to EBITDA Pre AASB16
profit in the first 4 months.
A number of growth initiatives continue to be implemented that enables further benefits from The Agency’s
existing office infrastructure and additional geographical areas that will enable the The Agency continues on its
path to grow Gross Commission Income to $200m.
FY23 AGM Presentation 11
Strategic objectives
Growth in agent Developing adjacent Multi Brand Strategy. Training and coaching. Leveraging
numbers. offerings. technologies.
Further expansion of Enhancement of Continue development Further investment into Leveraging technology and
geographical regions across adjacency offerings to and rollout of training and coaching cost of doing business
Australia in a disciplined our agents and secondary brand. initiatives ensuring efficiencies enhancing agent
capital and operating expense customers to increase Agents and support experience. Focus on building
approach. This will include the share of wallet. teams are well placed out the scalable platform for
potential acquisitions through to capitalise on future growth.
MDC Trilogy Group. evolving market
Continued growth in agent conditions.
numbers across all targeted
regions across the country.
FY23 AGM Presentation 12
FY2024 Outlook
Volume increases Greater price stability. Shift towards larger Market consolidation to Mixed consumer
expected. agent teams. continue. sentiment.
Across FY24, states with Following the expectation that Super Agent Teams to Market Consolidation 1H FY24 consumer sentiment
lower median price points to interest rates are at or very continue to grow as continues as smaller to remain broadly at currently
continue to transact above near the terminal rates, FY24 inexperienced agents continue independents and franchisees levels as consumers adjust to
decade average volume is expected to see a period of to leave the industry. look to access operating higher interest rates,
levels, outperforming higher price stabilisation across the efficiencies. The MDC Trilogy followed by a rebound in
median priced states which country. However it may be a Group alliance means we are consumer sentiment during 2H
are expected to transact 2-tier market, with more listings well placed to capitalise on FY24 as media start
below decade volume in lower value properties this. discussing the peak of the
averages. potentially causing price falls, tightening cycle having been
while higher value properties reached.
may experience price
increases.
FY23 AGM Presentation 13
Geoff Lucas
Managing Director & CEO
geofflucas@theagency.com.au
linkedin.com/Geoff-lucas
FY23 AGM Presentation 14
FY23 AGM Presentation 14
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