1H FY2025 Investor Presentation
Download the PDFPreparing the document viewer…
Read the announcement as text
1H FY2025 Investor Presentation
28 February 2025
1H FY2025 Investor 2
1H FY2025 Key Takeaways Presentation
Underlying EBITDA1 Revenues from Ordinary Activities
(1H FY2024: $557K) (1H FY2024 : $43.9M)
Properties Under Management Estimated Net Assets
31 December 2023: 5,089 (30 June 2024: $36.80M)
Gross Value of Properties Sold No. of Properties Sold
(1H FY2024 : $3.3B) (1H FY2024 : 3,115)
GCI3 No of Agents
(1H FY2024 : $56.9M) (31 December 2023: 411)
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.
1H FY2025 Investor Presentation 3
Record transaction $3.6bn
$60.9m
volume underpinned $3.3bn
$52.9m
$56.9m
$3.0bn
growth in other $45.8m
metrics 316,068
2,910 2,847
3,115
3,311
$2.6bn
$38.1m
271,169 $2.2bn
266,598 260,470
236,535 2,407
Record six month result of 3,311 transactions under
pinned record Gross Sale Volume and Gross
Commission Income level.
Improved transaction contributions from East Coast states
assisted the growth in Gross Sales Volume.
Total Properties Sold in Australia* No of Properties Sold by The Gross Sales Volume Gross Commission Income ($M)^
Agency Group
1H FY21 1H FY22 1H FY23 1H FY24 1H FY25
* Source: CoreLogic Economist Park (Dec 2024).
^ Gross Commission Income (“GCI”) is the fees the vendor pays for the sale of a property.
1H FY2025 Investor Presentation 4
A growing brand with 464 agents
with presence across six states
and territories.
The Agency group of brands achieved #2 market share in Perth, Western
Australia in CY241 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 26.8% of The Agency 1H
FY2025 exchanges (1H FY2024: 25.7%).
1. Based on # of Transactions
1H FY2025 Investor Presentation 5
“When I wanted to start my own real estate “It’s really allowed me to run my business my way
What do our business, I looked at the model and thought: this
model works perfectly for me because I don't have
and to be part of a fantastic culture environment.”
Bethwyn Richards – Property Partner, NSW
Agents say ? to have a front of house reception, an operations
manager, a marketing team, I don't manage a trust
“With The Agency, I get the admin side supported,
account and best of all, I don't have the Department
and I get to just do the part that I'm good at, which
of Fair Trading walking into my office to check my
is connecting with people.”
files. My focus is purely my clients that I look after.”
Sabrina Bestel – Property Partner, Victoria
Sunny Gandhi – Property Partner, NSW
“The Agency provides you a model that allows you
“I don't think I'd have the same freedom to run my to grow your business. It’s got lots of flexibility on
business the way I want with any other model how you do that: you are your own boss.”
The Agency is the only direct premium national brand besides The Agency.“
Todd Brandon – Property Partner, QLD
operating in Australia. All compliance and operations are Catherine Murphy – Property Partner, NSW
handled centrally which reduces the cost of an agent “With the support and systems in place at The
“It gives me the ability to do the work when I need Agency, from joining the industry with The Agency
doing business, and minimise distractions to allow them to do the work. Whereas previously working for a six years ago, I now have a team doing a sale a
to solely focus their attention on selling real estate. bigger franchise company, it was very strict in the day”
way that your day is scheduled.” Team Rash – Property Partner, WA
We are the first to recognise that the Agent is our client Luke Saville– Property Partner, Victoria
“They really encourage you to step up and want to
and our job was to help them do what they do best – achieve more.”
“I've got great admin support behind me. So that
sell and list property, and remove as much of the non allows me to do more what I need to do: go and see Stephanie O’Sullivan – Property Partner, NSW
dollar producing activities, while assisting them with clients, get listings, prospect.”
marketing and lead generation Jim Christou – Property Partner, Victoria
1H FY2025 Investor Presentation 6
Benefits of • The Agency is the only direct model with a national exposure which enables cross
country referrals of clients and single process workflows that mean a client experience
The Agency model does not change regardless if they transact in Rockhampton, Sydney or Perth.
• In franchise brands where you're very much hemmed in by certain postcodes, that's
not the case with The Agency. So our Property Partners are free to list and sell
wherever they choose to.
• When you become a part of The Agency, you join a community and a culture of
motivated and visionary people and teams leveraging our resources, expertise and
methodologies for success.
• To achieve more as a real estate agent, you need to implement change in every
element across the selling and purchasing journey. At The Agency you have the
complete technology stack to do this, provided on Day 1, to enable you to grow and
become more.
Due to its scale, The Agency is able to offer
• While agents can separately purchase an IT platform solution for each stage of the
all agents a singular and consistent market purchasing journey, hire my own trust accountant, franchise an office, what they can
leading technology solution at every stage of not purchase separately is The Agency workflows and API linkages between various
the prospecting, listing and selling stage of SAAS providers through our proprietary data lake developed that enables efficient,
consistent experiences for Agents clients.
the buying and selling journey.
• At The Agency, we adopt a progressive stance towards technology. As part of our
approach, we implement end-to-end technology that streamlines the nurturing, listing
and selling process for our agents. This state-of-the-art platform exemplifies our
dedication to providing a seamless and efficient experience.
• Our nationwide concierge agent support network further enhances our innovative
practices and support, setting The Agency apart as a leader in tech-driven real estate
solutions.
1H FY2025 Investor Presentation 7
Over 12,000+
investment $6.4m
properties managed $4.7m
$5.5m
5,355 10,571
by The Agency 4,908
5,089 10,092
$4.1m
$4.6m
$3.5m
$4.1m
$3.0m
3,601
3,398 $3.3m
$2.5m
5,891
As at 31 December 2024, The Group managed 10,571 (31 December
2023: 10,092) properties on behalf of landlords. The property
3,601 3,548
management business is comprised of 5,355 (31 December 2023:
5,089) that are owned by the Agency and 5,216 (31 December 2023:
5,003) externally owned management rights.
Further to the above, at the balance sheet date, there was a contract
to purchase a further 1,500+ management agreements by the
external MDC Trilogy Group which once completed, will result in # of AU1 Owned Properties Under # of Total Properties Under Mgmt AU1 Mgmt Fee Income Total Property Mgmt Income
which will be managed by The Agency under a services arrangement. Mgmt
Combined, the 10,000 plus managed properties collected $309m of
rent in CY24 on behalf our landlords and represent an estimated $9 1H FY21 1H FY22 1H FY23 1H FY24 1H FY25
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.
1H FY2025 Investor Presentation 8
Gross Commission Income (GCI^)
On Target for record $140m
Current Run Rate FY25: $120M
GCI^ in FY25, $120m
GCI^ Current Run Rate
underpinned by a $102.5m
(Agents: 393)
$112.5m
(Agents: 433)
record number of $100m
$80.7m
$95.4m
property sales and $80m
(Agents: 308) (Agents: 399)
Current
Pipeline
growing market share GCI $20M
$60m
$47.9m
(Agents: 283)
$40m
Record GCI contributions from Tasmania, VIC and
$38.0m
Queensland contributed to a record Group GCI in
FY24 and growing in FY25. (Agents: 272)
$20m
$-
FY19 FY20 FY21 FY22 FY23 FY24 Current Run
Rate FY25
^ Gross Commission Income (“GCI”) is the fees the vendor pays for the sale of a property.
1H FY2025 Investor Presentation 9
• Structured to be able to be flexible and adopt to industry and agent demands and challenges.
Unlike Franchises competitors who are restricted by franchisor relationships and existing
Franchise agreements.
Why be a • Difficult to recreate by existing franchise brands who are limited by the franchise code and
committed contract terms to pivot to a direct engagement model. Franchisees profit margins is
Shareholder of being squeezed by higher agent commissions, higher operating costs and franchise fees attached
to revenue (rather than business profit).
The Agency?
• Difficult to replicate The Agency existing licenses to operate a sales and property management
business along with the knowledge of the operational requirements (and differences) with each
state Office of Fair Trading which require state based oversight, residency and audits.
• Due to the predominance of the small family owner office within our industry, difficulty in replicating
The Agency has an addressable commission market of $7+ billion a national brand and leadership team with experience of running a direct engagement model,
operating nationally with 450+ agents and 12,000+ properties under management.
and is the only listed residential real estate investment opportunity.
The Agency business is difficult to replicate a national brand • Geographically diverse sales business in each state provides exposure to each state's economy.
Establishment costs/investment of each state have now occurred, with each state now supporting
quickly or cheaply due to a highly regulated industry at a state its own state general manager. In FYTD25 each state is delivering positive cashflow to invest in
based level, making AU1 attractive for consolidation in the industry. future strategic objectives.
The Agency has had a growing off balance sheet asset base driven • Annual Recurring revenue of in excess of $10m from a geographically diverse property
by Property Management assets that have been independently management portfolio that was independently valued at $36.32m at 30 June 2024.
valued at $36.32m at 30 June 2024. The directors value the
business in excess of 5.5 cents per share. • Established external funding mechanism with Trilogy Funds ($2bn Funds under management) to
acquire rent rolls ($40m+ of rent rolls so far acquired) under a Services Management Agreement
that delivers earnings to The Agency (separate to our existing 5,000+ property managements)
• Creation of new brand/service offering model targeting offices that wish to remain independently
branded
• Alignment of interests with agents and management team who own ~25% of the business.
1H FY2025 1H
Investor
FY2025
Presentation
Investor 10
Presentation
We are a small Residential Real Estate $11.1 Tn
piece of a big pie
Australian Superannuation $4.1 Tn
55.9% of Australian Household Wealth is
held in Residential Housing with a $6.9
Australian Listed Stocks $3.3 Tn
Billion annual addressable sales
commission market.
Commercial Real Estate $1.3 Tn
Sales in FY24 Gross Value of Sales in FY24 CY25 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
1H FY2025 Investor Presentation 11
1H FY2025 1H
Investor
FY2025
Presentation
Investor 812
Presentation
Business Performance Update Record GCI result
After continued investment in recruitment activities, cost of doing business ratio decreased 89 basis points from 1H
FY2024 to 1H FY2025 1H FY2025 GCI of $60.94m was a record GCI half for
the company (previous record was $56.9m in 1H
Continued efficiencies in the cost of doing business ratio is expected in 2H FY2025 and FY2026 as recruitment efforts FY2024
continue to grow Gross Commission Income.
Agent Mix and increased Property Management
UNDERLYING1 UNDERLYING1 revenue driving Revenue growth
($M) Change During 1H FY2025, a higher percentage of sales by
1H FY2025 1H FY2024
employee agents resulted in Revenue growth above
GCI growth2. Gross Profit growth exceeded GCI growth.
GCI 60.94 56.89 7.1%
Property Management Revenue grew from to $6.40m in
Revenue2 48.34 43.93 10.0% 1H FY2025 from $5.52m in 1H FY2024, a 15.8%
increase.
Gross Profit 15.78 14.61 8.0%
Other Income 0.36 0.37 -3.8%
Operating Expenses (15.45) (14.43) 7.1% Investment in Recruitment initiatives
Cost of Doing Business3 32.0% 32.8% -89 basis points Significant recruitment initiatives continue to be
undertaken, with formation of a national recruitment,
new model concept (Rightmove) department in 2H
EBITDA $ 0.69 $ 0.56 +16.2%
FY2024.
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
1H FY2025 1H
Investor
FY2025
Presentation
Investor 813
Presentation
Significant shareholder value growing off + 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
Balance Sheet due to amortisation of rent management portfolio increasing in the period, under the
accounting standard rules, the Profit & Loss statement for the
roll asset due to AASB accounting six month period includes an amortisation charge of the
externally purchased property management assets held as
an intangible asset. This amortisation charge has resulted in
standards a reduction of Statutory Net assets and results in an increase
in assets not recognised in the balance sheet.
+ An independent valuation was undertaken at 30 June 2024
which valued the Property Management portfolio at $36.32m
STATUTORY STATUTORY
($7.40m of this value was on balance sheet at 30 June
2024). The management fees collected by the company from
($M) 31 December 2024 30 June 2024 Change the property management portfolio increased in Q2 FY2025
compared to Q4 FY2024. While the Directors believe that the
Cash at Bank 4.94 4.90 +0.8% increase in management fee income has increased the value
of the property management portfolio, the Directors have
-29.1% held their assessment of the value of the property
Net Assets 5.59 7.89
management portfolio stable at $36.32m as at 31 December
2024 Another independent valuation will be completed for
Assets not on balance sheet 30.86 28.91 +6.7% the Directors at 30 June 2025.
+ Only $5.46m of the property management value is held on
Estimated Shareholder Net Assets 36.45 36.80 -1.0%
the Balance Sheet as an intangible asset as at 31 December
2024 ($7.40m as at 30 June 2024), leaving $30.86m of
shareholder value off balance sheet at 31 December 2024
($28.91m at 30 June 2024).
+ Adjusting for these off balance sheet assets, Estimated
Shareholder Net Assets has decreased 1.0% to $36.45m
($36.80m at 30 June 2024).
1H FY2025 Investor Presentation 14
Balance Sheet.
Statutory Statutory
($M) 31 December 2024 30 June 2024 Change
4.94 4.90 +0.8%
Cash at Bank
15.23 15.00 +1.5%
Other Current Assets
29.62 27.05 +9.5%
Non Current Assets
49.79 46.96 +6.0%
Total Assets
(37.05) (27.76) +33.4%
Total current liabilities
(7.16) (11.30) -36.7%
Total Non current liabilities
(44.21) (39.07) +13.2%
Total Liabilities
5.59 7.89 -29.2%
Net Assets
30.86 28.91 +6.7%
Assets not on balance sheet1
36.45 36.80 -1.0%
Estimated Shareholder Net Assets
+ Growth in Non Current Assets of $4,498k due to new leases signed in 1H FY25, offset by the net $2,250 depreciation and amortisation charge. Non current liability increase of $4,161k due new leases signed in 1H
FY25 and accounted for under AASB16.
+ 1: An independent valuation was undertaken at 30 June 2024 which valued the Property Management portfolio at $36.32m. The management fees collected by the company from the property management portfolio
increased in Q2 FY2025 compared to Q4 FY2024. While the Directors believe that the increase in management fee income has increased the value of the property management portfolio, the Directors have held their
assessment of the value of the property management portfolio stable at $36.32m as at 31 December 2024 Another independent valuation will be completed for the Directors at 30 June 2025.
Only $5.46m of the property management value is held on the Balance Sheet as an intangible asset as at 31 December 2024 ($7.40m as at 30 June 2024), leaving $30.86m of shareholder value off balance sheet at 31
December 2024 ($28.91m at 30 June 2024).
1H FY2025 Investor Presentation 15
1H FY2025 Investor Presentation 16
Expectation of strong growth
underpinned by large
addressable market
The annual value of residential real estate commissions is $7bn+. What to watch for
The second and third largest states for # of sales each year are in
the infancy and are expected to contribute meaningful growth in
comings years. Increased number
• Recruitment model in place and being expanded to target growth in quality agents
in $7 billion + Gross Commission national market
of quality agents
• Management structure back in place to generate previously achieved agent and
EBITDA growth
• Strong office and infrastructure footprint across six states and territories
• Partnership with external rent roll funder to build sales market share and GCI
growth
• Factualising cost of doing business ratio
• Increasing value of property management rent roll as rents continue to increase
across the country
1H FY2025 Investor Presentation 17
1H FY2025 Investor Presentation 18
Profit and loss statement.
UNDERLYING1 STATUTORY
($M) 1H FY2025 1H FY2024 Change 1H FY2025 1H FY2024 Change
Revenue 48.34 43.93 10.0% 48.34 43.93 10.0%
Cost of Sales (32.56) (29.31) 11.1% (32.56) (29.31) 11.1%
Gross Profit 15.78 14.61 8.0% 15.78 14.61 8.0%
Other Income 0.36 0.37 -3.8% 0.36 0.37 -3.8%
Operating Expenses (15.45) (14.43) 7.1% (14.25) (13.30) 7.1%
EBITDA 0.69 0.56 16.2% 1.89 1.69 12.1%
Share of profit/(loss) from equity accounted
investments 0.02 - n/a 0.02 - n.a
Depreciation and Amortisation (2.25) (2.45) -8.2% (3.23) (3.35) -3.6%
Share-based payments expense - (0.22) n.a. - (0.22) n.a
Fair Value Gain/(Loss) on Financial Asset - - n.a. - (0.11) n.a
One off legal fees2 - - n.a. - (0.32) n.a
Profit/(Loss) on Sale of Asset/lease exit - - n.a. 0.05 0.05 n.a
Other (0.02) - n.a. (0.02) - n.m
EBIT (1.56) (2.11) +26.1% (1.28) (2.26) n.m
Net Finance Income (Expense) (0.51) (0.56) -8.9% (0.79) (0.76) -3.9%
Embedded derivative non-cash finance gain/(cost) - - n.a. (0.23) (0.50) n.m
Net Profit/(Loss) Before Tax (2.07) (2.67) +22.5% (2.30) (3.52) n.m
Income Tax Expense/(Benefit) - 0.40 n.m - 0.40 n.m
Net Profit After Tax (2.07) (2.28) n.m (2.30) (3.12) 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
Cashflow Statement. 1H FY2025 Investor
1H FY2025 InvestorPresentation
Presentation
19
19
1HFY24 FY24 (Statutory) FY23 (Statutory)
($M) (Underlying)* (Post AASB16) (Post AASB16)
(Pre AASB16)^
EBITDA 0.69 1.89 1.68
Change in net working capital 0.06 0.23 0.46
Net interest Paid (0.30) (0.34) (0.38)
Net Cashflow from Operating Activities 0.45 1.78 1.76
Purchase of property, plant and equipment (0.17) (0.17) (0.21)
Purchase of intangibles (0.21) (0.21) (0.11)
Refund/(Deposit) for bank guarantees - - (0.00)
Net Loans to other entities (0.03) (0.03) (0.06)
Net cash received on disposal of asset - - (0.05)
Net cash (used in) / received from investing activities (0.41) (0.41) (0.33)
Payment of principal portion of lease liabilities - (1.33) (1.36)
Net cash used in financing activities - (1.33) (1.36)
Net (decrease)/increase in cash and cash equivalents 0.04 0.04 0.07
held
Cash and cash equivalents at the beginning of the year 4.90 4.90 4.63
Cash and cash equivalents at the end of the year 4.94 4.94 4.70
* 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
1H FY2025 Investor Presentation 20
Andrew Jensen
Executive Chairman
andrewjensen@theagency.com.au
David Tasker
Chapter One Advisors
dtasker@chapteroneadvisors.com.au
21
1H FY2025 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
This presentation does not purport to be all inclusive or to contain all assumptions and estimates related to future technical,
information about the Company or any of the assets, current or economic, market, political, social and other conditions.
future, of the Company. This presentation contains summary The Company disclaims any intent or obligation to
information about the Company and its activities which is current as publicly update any forward looking statements,
at the date of this presentation. The information in this presentation is whether as a result of new information, future events or
of a general nature and does not purport to contain all the information results or otherwise.
which a prospective investor may require in evaluating a possible
investment in the Company. The words “believe”, “expect”, “anticipate”, “indicate”,
“contemplate”, “target”, “plan”, “intends”, “continue”,
The Company does not undertake to provide any additional or “budget”, “estimate”, “may”, “will”, “schedule” and similar
updated information whether as a result of new information, future expressions identify forward looking statements.
events or results or otherwise.
All forward looking statements contained in this
Presentation are qualified by the foregoing cautionary
Forward looking statements statements. Recipients are cautioned that forward
looking statements are not guarantees of future
Certain statements contained in this presentation, including
performance and accordingly recipients are cautioned
information as to the future financial or operating performance of the
not to put undue reliance on forward looking statements
Company and its projects, are forward looking statements. Such
due to the inherent uncertainty therein.
forward looking statements: are necessarily based upon a number of
estimates and assumptions that, while considered reasonable by the
Company, are inherently subject to significant technical, business,
economic, competitive,