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FY2024 Investor Presentation
28 August 2024
FY24 Key Takeaways FY24 Investor Presentation 2
Underlying EBITDA1 Revenues from Ordinary Activities
(FY23: -$1,297K) (FY23 : $76.9M)
Property Management Portfolio Value2 Estimated Net Assets
(FY23: $27.91M) (FY23 : $29.08M)
Gross Value of Properties Sold No. of Properties Sold
(FY23 : $5.3B) (FY23 : 5,734)
GCI3 No of Agents
(FY23 : $95.4M) (30 June 2023: 399)
1. Underlying adjusted for the impact of AASB16 Leasing Standard, Gain on Sale and other one off items.
2. Independent Valuation conducted by Pendium Advisory as at 23 August 2024
3. Gross Commission Income (“GCI”) is the fees the vendor pays for the sale of a property.
FY24 Investor Presentation 3
Record transaction
volume $6.5bn
$102.5m
$112.5m
underpinned growth $5.9bn
$5.3bn
$95.4m
in other metrics 573,365584,641 5,709 5,734
6,239
$4.8bn $80.7m
508,610 4,964
468,218
415,549
$2.9bn $47.9m
3,147
Record result of 6,239 transactions under pinned
record Gross Sale Volume and Gross Commission
Income level.
Improved transaction contributions from East Coast states
assisted the growth in Gross Sales Volume.
Total Properties sold in Australia* No of Properties Sold by The Gross Sales Volume Gross Commission Income ($M)^
Agency Group
FY20 FY21 FY22 FY23 FY24
* Source: CoreLogic Economist Park (Jun 2024).
^ Gross Commission Income (“GCI”) is the fees the vendor pays for the sale of a property.
FY23 Investor Presentation 4
A growing brand with 433 agents
with presence across six states and
territories.
The Agency group of brands achieved #2 market share in Western
Australia in FY241 with 9% market share in the Perth and greater
metropolitan region where we operate.
Our focus to continue to grow our East Coast presence has resulted
in our New South Wales business increasing to representing 26.2% of
The Agency FY24 exchanges (FY23: 21.9%).
The Agency has continued to expand its presence during FY24 with
additional markets in Inner West Melbourne around the Port
Melbourne and Altona market, while In late FY2024, The Agency
leveraged our Launceston, Tasmania operations with an organic entry
into the Hobart market
1. Based on # of Transactions
FY24 Investor Presentation 5
Over 10,000 investment properties
managed by The Agency
As at 31 December 2024, The Group managed 10,168 (30 June 2023: 5,978) properties on
behalf of landlords. The property management business is comprised of 5,256 (30 June 2023:
5,018) that are owned by the Agency and 4,912 (30 June 2023: 960) externally owned
management rights. An external valuation of our 5,256 management rights was undertaken
which valued the portfolio at $36.32m as at 30 June 2024.
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 10,000 plus managed properties collected $286m of rent in FY24 on behalf our
landlords and represent an estimated $9 billion of Australian’s property investors wealth. Our
national footprint enables 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.
FY24 Investor Presentation 6
FY24 Investor Presentation 87
Business Performance Update Record GCI result
Consistent cost of doing business ratio in FY24 to FY23 which allowed significant investment in
recruitment, technology, new premises due to the MDC Trilogy Alliance and establishment of second FY24 GCI of $112.5m was a record GCI for the
company, growing from $95.4m FY23.
brand Rightmove in FY24.
Fractalisation of Cost of Doing Business Ratio is expected in FY25 as we get the full year benefit from
these FY24 investments.
UNDERLYING1
Agent Mix
($M) FY24 FY23 Change
During FY24, a higher percentage of sales by
GCI 112.53 95.39 18.0% independent contractors resulted in Revenue growth
below GCI growth2.
Revenue2 87.97 76.93 14.4%
Gross Profit 29.00 24.25 19.6%
Other Income 0.57 0.48 n.m.
Operating Expenses (30.02) (26.25) 14.4% Investment in Recruitment initiatives
Cost of Doing Business3 34.1% 34.1% 0 basis points A significant increase in recruitment initiatives with
formation of a national recruitment department driven by
the appointment of two state recruitment managers who
EBITDA (0.45) (1.30) -65.4%
will be focused on quality agent growth in FY25.
1. Underlying adjusted for the impact of AASB16 Leasing Standard, Gain on Sale and other one off items.
2. According to accounting standards, recognition of revenue is dependent on the engagement mechanism of the Agent. A sale by a payroll agent will result as revenue equal to GCI, with an agent
commission expense in Cost of Sales. A sale by a non payroll independent contractor agent, revenue is equal to The Agency share GCI. There is no cost of sale expense for a non payroll agent.
As a general rule, Western Australia agents are predominantly Payroll agents, while East Coast agents are predominantly non payroll agents.
3. Operating Expenses Pre AASB16 Leasing Standard as a percentage of revenue
n.m – not material
FY24 Investor Presentation 88
Significant shareholder value + The value attached to internally generated Property
Management and remaining Mortgage book is not recorded
in the balance sheet. Despite the value of the property
held off Balance Sheet management portfolio increasing in the period, under the
accounting standard rules, the Profit & Loss statement for the
twelve month period includes an amortisation charge of the
externally purchased property management assets held as
an intangible asset. This amortisation charge has resulted in
a reduction of Statutory Net assets and results in an increase
in assets not recognised in the balance sheet.
+ An independent valuation was undertaken which has valued
the Property Management portfolio at $36.32m.
STATUTORY
+ Only $7.40m of the property management value is held on
($M) 30 June 2024 30 June 2023 Change the Balance Sheet as an intangible asset as at 30 June 2024
($11.30m as at 30 June 2023), leaving $22.93m of
+5.8% shareholder value off balance sheet at 30 June 2024
Cash at Bank 4.90 4.63
($16.56m at 30 June 2023).
Net Assets 7.89 12.54 -37.1% + Adjusting for these off balance sheet assets, Estimated
Shareholder Net Assets has increased 26.4% to $36.80m
Assets not on balance sheet 28.91 16.56 +74.6% ($29.11m at 30 June 2023).
Estimated Shareholder Net Assets 36.80 29.08 +26.5%
FY24 Investor Presentation 9
FY24 Investor Presentation 10
Market Residential Real Estate $10.8 Tn
Update.
Australian Superannuation $3.9 Tn
56.2% of Australian Household Wealth
is held in Residential Housing with a Australian Listed Stocks $3.1 Tn
$6.9 Billion annual addressable sales
commission market.
Commercial Real Estate $1.2 Tn
Sales in FY24 Gross Value of Sales in FY24 FY24 Total Annual Addressable Market*
(GCI)
Source: CoreLogic, RBA, APRA, ASX
* Assessed at 1.50% Average Commission Rate of Gross Sales
Volume of $459.2Bn. Number of investment Estimated Value of investment
properties in Australia properties in Australia
FY24 Investor Presentation 11
Change in sales volumes, twelve months to June 2024
FY24
Market Sales NSW 12.0%
Volume VIC 10.0%
QLD 5.1%
In the twelve months to 30 June 2024,
Australian market volumes have
increased 8.6% from FY23 levels, with SA 7.2%
stronger growth in key NSW and WA
states.
WA 9.6%
TAS 1.0%
ACT -1.7%
Source: CoreLogic
Australia Combined Regionals Combined Capitals
FY24 Investor Presentation 12
State Breakdown of Transactions Volume
State Breakdown (12 months to June 2024)
of Sales. WA; 68,032; 13%
NSW; 151,581; 30%
In the twelve months to 30 June2024, NSW SA; 33,632; 6%
represented 30% of the national sales
volume, followed closely by Queensland at
24% and Victoria at 22%.
NT; 3,349; 1%
Combined these 3 states represent three TAS; 9,402; 2%
quarters of the nationals sales volume.
Increased organic agent recruitment and ACT; 8,873; 2%
MDC Trilogy Group capital deployment will
improve The Agency’s market share in
these key growth markets.
QLD; 122,500; 24%
Source: CoreLogic VIC; 111,241; 22%
FY24 Investor Presentation 13
Investor
Portion of new lending for investment housing Investors as a % of housing finance
Participation (excluding refinance) commitments by state (Dec’23)
ACT 38.0%
Investor Participation at 37.1% is above the TAS 28.6%
decade average of 33.9%.
NSW is the state with the highest investor WA 36.6%
participation with 41.8% of lending to
investors, while WA has grown to 36.6% in
December 2023. The Agency has growing SA 37.9%
property management rights in both of these
key investor markets.
QLD 39.1%
VIC 32.1%
NSW 41.8%
AUST 37.1%
Source: CoreLogic, ABS
FY24 Investor Presentation 14
FY24 Investor Presentation 15
FY2025 Outlook
Stable volumes Greater price stability. Shift towards larger Market consolidation to Mixed consumer
expected agent teams. continue. sentiment.
Australian FY24 volumes Strong price growth in Perth is Continued shift to Super Agent Market Consolidation FY25 consumer sentiment to
were 4.0% higher than expected to continue, NSW Teams as inexperienced continues as smaller remain broadly at currently
decade average transaction flat, while most other states will agents consolidate to work independents and franchisees levels until economic data
volumes while NSW was see limited pricing movements with a leading agent. look to access operating supports interest rate
2.9% below its decade in FY25. efficiencies. The MDC Trilogy reductions (expected in mid
average. FY25 is expected to National Recruitment function Group alliance and other CY2025).
see similar volumes across team focused on growth of external owned property
the country of around quality agents in FY25. management offerings means
500,000 sales completed. we are well placed to capitalise
on this trend in a capital light
way which is earnings
accretive.
FY24 Investor Presentation 16
FY24 Investor Presentation 17
Profit and loss statement.
UNDERLYING1 STATUTORY
($M) FY24 FY23 Change FY24 FY23 Change
Revenue 87.97 76.93 14.4% 87.97 76.93 14.4%
Cost of Sales (58.97) (52.46) 12.4% (58.97) (52.46) 12.4%
Gross Profit 29.00 24.25 19.6% 29.00 24.47 18.5%
Other Income 0.57 0.48 n.m 0.67 0.58 15.6%
Operating Expenses (30.02) (26.25) 14.4% (29.53) (24.05) 22.8%
EBITDA (0.45) (1.30) -65.4% 1.60 0.93 72.0%
Share of profit/(loss) from equity accounted
investments 0.01 - n/a 0.01 - n.a
Depreciation and Amortisation (4.66) (4.69) -0.6% (6.43) (6.47) -0.6%
Share-based payments expense (0.24) (0.46) -47.8% (0.24) (0.46) -47.8%
Fair Value Gain/(Loss) on Financial Asset - - n.a. 0.17 (0.07) n.a
One off legal fees2 - - n.a. (0.33) (0.62) n.a
Acquisition of business costs - - n.a. - (0.08) n.a
Profit/(Loss) on Sale of Asset - - n.a. 1.19 1.51 n.m
EBIT (5.34) (6.45) 17.2% (4.03) (1.88) n.m
Net Finance Income (Expense) (1.39) (0.95) 46.3% (1.39) (1.51) -7.9%
Embedded derivative non-cash finance gain/(cost) - - n.a. 0.12 1.35 n.M
Net Profit/(Loss) Before Tax (2.67) (7.40) n.m (5.28) (5.41) n.m
Income Tax Expense/(Benefit) 0.40 2.22 n.m 0.40 1.09 n.m
Net Profit After Tax (2.28) (5.18) n.m (4.89) (4.32) n.m
1. Underlying adjusted for the impact of AASB16 Leasing Standard, Gain on Sale and other one off items.
2. Legal costs associated with The Agency Group’s intellectual property action against the company H.A.S. Real Estate, the registered owner of The North Agency.
n.a – Not Applicable / n.m – Not Meaningful
FY24 Investor Presentation 18
Balance Sheet.
UNDERLYING1
($M) 30 June 2024 30 June 2023 Change
4.90 4.63 +5.8%
Cash at Bank
15.00 13.24 +13.3%
Other Current Assets
27.05 31.85 -15.0%
Non Current Assets
46.96 49.72 -5.5%
Total Assets
(27.76) (21.66) +28.2%
Total current liabilities
(11.30) (15.52) -27.2%
Total Non current liabilities
(39.07) (37.18) +5.1%
Total Liabilities
7.89 12.54 -37.1%
Net Assets
28.91 16.56 +74.6%
Assets not on balance sheet1
36.80 29.08 +26.5%
Estimated Shaerholder Net Assets
1: Management valuation of the Property Management portfolio of $30.33m is calculated on a blended valuation multiple of 3.35x on Q4 FY24 Annualised Property Management fees. Only $7.40m of this value is held on the
Balance Sheet as an intangible asset, leaving $22.93m value off balance sheet.
30 June 2023 balance included a value attributed to Mortgage Book which was valued at 2.25x Net Trail Income. This book was sold as part of MFSA disposal resulting in the value now held on balance sheet..
FY24 Investor Presentation
Cashflow Statement. FY24 Investor Presentation
19
19
1HFY24 FY24 (Statutory) FY23 (Statutory)
($M) (Underlying)* (Post AASB16) (Post AASB16)
(Pre AASB16)^
EBITDA (0.45) 1.60 0.90
Change in net working capital 0.80 1.20 (0.63)
Net interest Paid (0.71) (0.71) (0.71)
Net Cashflow from Operating Activities (0.36) 2.09 (0.44)
Purchase of property, plant and equipment (0.28) (0.28) (0.45)
Purchase of intangibles (0.20) (0.20) (0.59)
Refund/(Deposit) for bank guarantees 0.01 0.01 (0.15)
Net Loans to other entities (0.06) (0.06) (0.16)
Net cash received on disposal of asset - - 1.64
Net cash received on disposal of subsidiary 1.09 1.09 -
Payment for acquisition of subsidiary, net of cash
- - (4.37)
acquired
Proceeds from disposal of financial asset 0.08 0.08 -
Net cash (used in) / received from investing activities 0.63 0.63 (4.07)
Payment of principal portion of lease liabilities - (2.45) (2.47)
Proceeds of borrowings - - 3.40
Net cash used in financing activities - (2.45) 0.93
Net (decrease)/increase in cash and cash equivalents 0.27 0.27 (3.59)
held
Cash and cash equivalents at the beginning of the year 4.63 4.63 8.22
Cash and cash equivalents at the end of the year 4.90 4.90 4.63
* Underlying adjusted for the impact of AASB16 Leasing Standard, Gain on Sale and other one off items.
^ This is a non A-IFRS measure
Note – may not add through due to rounding differences
FY24 Investor Presentation 20
Andrew Jensen
Executive Chairman
andrewjensen@theagency.com.au
David Tasker
Chapter One Advisors
dtasker@chapteroneadvisors.com.au
21
FY24 Investor Presentation 21
Not an offer
This presentation is for information purposes only. This presentation political and social uncertainties and contingencies;
does not comprise a prospectus, product disclosure statement or involve known and unknown risks and uncertainties that
other offering document under Australian law (and will not be lodged could cause actual events or results to differ materially
with the Australian Securities and Investments Commission) or any from estimated or anticipated events or results reflected
other law. in such forward looking statements; and may include,
among other things, statements regarding estimates
and assumptions in respect of prices, costs, results and
Summary information capital expenditure, and are or may be based on
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information about the Company or any of the assets, current or economic, market, political, social and other conditions.
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Certain statements contained in this presentation, including
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Company and its projects, are forward looking statements. Such
due to the inherent uncertainty therein.
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Company, are inherently subject to significant technical, business,
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