The Agency Real Estate Australia - Comprehensive Analysis Report

Summary

The Agency Real Estate Australia, traded as AU1 on the ASX, is a pioneering real estate firm headquartered in Sydney, NSW. Its core mission is to unify Australia's most skilled real estate professionals into a cohesive national team, aiming to transform the conventional agency model. The company offers a full spectrum of real estate services, including advice on property purchasing, selling services, property management, renting, new development opportunities, and commercial property solutions. Since its ASX listing in December 2016 (initially as Ausnet Financial Services, rebranded in December 2017), The Agency has established itself as a significant disruptor within the Australian real estate industry by fostering a non-franchise model that empowers agents through national support and advanced technology.

1. Strategic Focus & Objectives

Core Objectives

Consolidate Market Share: Strengthen leadership in existing markets such as New South Wales, Queensland, and Western Australia.

Expand into High-Growth Corridors: Strategically target new geographic areas for expansion.

Leverage National Scale: Enhance cross-border referrals and deliver consistent client experiences across Australia.

Drive Scalable Growth: Increase agent productivity through improved support, training, and technology.

Boost Recurring Income: Target rent roll acquisitions to diversify revenue streams.

Enhance Ancillary Services: Develop offerings like conveyancing (Landmark Settlements) and mortgage brokerage (Oxygen Home Loans) to improve customer experience and create new revenue opportunities.

Specialization Areas

The Agency specializes in a comprehensive range of real estate services, including property purchasing advice, selling services, property management, renting services, new development news and opportunities, and commercial property sales and leasing. Its unique non-franchise model empowers agents with a flexible, cloud-based operating environment backed by national support, marketing, training, and technology.

Target Markets

The primary target markets for The Agency include established regions such as New South Wales, Queensland, and Western Australia. The company also focuses on expanding into high-growth corridors across Australia, leveraging its national presence for both residential and commercial property sectors.

2. Financial Overview

Funding History

The Agency was initially listed on the ASX in December 2016 as Ausnet Financial Services, raising $5.8 million. The company reported a total revenue of $79,151,000 in 2023. For the fiscal year 2022, it achieved an underlying EBITDA of $3.85 million, marking a 26% increase from $3.06 million in FY21. Revenue for FY22 grew by 24% to $72.7 million (FY21: $58.4 million), driven by a 27% year-on-year increase in Gross Commission Income (GCI) to $102.5 million (FY21: $80.7 million). This growth was supported by a 15% increase in properties sold, totaling 5,709 properties in FY22 (FY21: 4,964), significantly outpacing the Australian market growth of 3.2%. As of June 30, 2025, the company had a trailing 12-month revenue of $1.46 million, a market capitalization of $6.03 million, and 440 million shares. Its primary lender, Macquarie Bank, reduced the interest rate for its $5 million debt facility from 4.75% to 3.75%, reflecting an improved balance sheet. The Agency has achieved significant sales milestones, including over $1 billion in national real estate sales in November 2025, following a strong performance in October.

3. Product Pipeline

Key Products/Services

Property Sales: Comprehensive services for buying and selling residential and commercial properties, including expert agent advice and marketing.

Property Management: Full suite of services for landlords, covering leasing, tenant management, and property maintenance.

Renting Services: Assistance for individuals seeking rental properties.

New Development Sales: Opportunities and insights into new property developments.

Landmark Settlements (Conveyancing): Ancillary service offering property transfer and legal settlement support to clients, enhancing convenience and efficiency.

Oxygen Home Loans (Mortgage Brokerage): Ancillary service providing mortgage financing solutions, integrating financial assistance directly into the real estate transaction process.

4. Technology & Innovation

Technology Stack

The Agency employs a technology-driven platform centered on a proprietary data lake and an integrated tech stack. This infrastructure connects multiple SaaS platforms via APIs, enabling standardized workflows and consistent client experiences. The company's business model is inherently cloud-based, providing agents with flexibility and comprehensive support covering branding, marketing, training, administration, compliance, and technical assistance. This focus on technology extends to strategic training and performance insights for agents, aiming to create operational efficiencies distinct from off-the-shelf solutions.

5. Leadership & Management

Executive Team

Mr. Andrew Jensen: Executive Chairman. Jensen previously served as Chief Operating Officer and Executive Chairman. He has been integral in demonstrating the strength of The Agency's national platform.

Matt Lahood: CEO of Real Estate. Lahood oversees the exceptional performance of agents nationally and the company's expansion into new markets. Formerly CEO of Top Level, he joined The Agency as Executive Director upon the acquisition of Top Level, collaborating with the leadership team on growth strategies and agent development.

Paul Niardone: Executive Director (West Coast) and Managing Director of The Agency Group. Niardone conceptualized the brand's unique non-franchise model and plays a key role in the company's growth strategy, focusing on team expansion and market share.

Brett Hancock: Licensee and Compliance Manager – Sales (WA). Appointed in June 2025, Hancock brings over a decade of senior leadership experience, previously holding roles such as State Sales Manager and Licensee at Arcadia Group. His responsibilities include supporting agents, enhancing operational efficiency, and driving client outcomes.

Alayne Meyer-Shaw: Licensee and Head of Property Management – WA. Appointed in June 2025, Meyer-Shaw has a proven track record in compliance, operational leadership, and client service, and is responsible for overseeing The Agency's expanding property management division in Western Australia.

Jack Wormington: WA Sales & Performance Manager. Appointed in June 2025, Wormington offers over 13 years of real estate expertise, including founding two successful agencies and achieving REIWA Grand Master status. His role involves agent performance coaching, leadership, and business development.

Recent Leadership Changes

On September 8, 2024, The Agency Group Australia terminated Group CEO Geoff Lucas’s contract with immediate effect. A formal recruitment process for a replacement is pending. In the interim, CEO responsibilities are being shared by Chief Operating Officer Andrew Jensen, Real Estate CEO Matt Lahood (East Coast), and Executive Director Paul Niardone (West Coast). Geoff Lucas was appointed Group CEO on March 29, 2021, bringing extensive executive experience from McGrath Limited, where he served as CEO and COO. In January 2023, Sally O'Connell was appointed General Manager of Sales for Victoria and Tasmania, tasked with replicating The Agency's success in New South Wales and Western Australia.

6. Talent and Growth Indicators

The Agency is experiencing continuous growth in its workforce, increasing its agent count from 308 in FY21 to 393 in FY22, and expanding into new Australian markets. As of December 2025, the company has approximately 400 real estate agents. The Agency focuses on attracting high-performing real estate professionals by providing a unique support model that offers flexibility, the security of a national brand, and higher commission splits compared to traditional models. The company plans further updates to its onboarding, training, coaching, and technology processes in 2026 to solidify its growth position. There is also ongoing investment in talent to strengthen both sales and property management operations.

7. Social Media Presence and Engagement

The Agency actively manages its digital footprint, securing over 2,000 media placements in 2024, generating nearly $2 billion in ad value, and reaching an audience of more than 41 billion readers. The company connects with over 500,000 followers across social media platforms. They publish The Agency Magazine and conduct brand campaigns like the "Next Generation of Real Estate" campaign, which features agent-driven storytelling and visuals to amplify brand presence.

8. Recognition and Awards

The Agency Group Australia has consistently achieved industry recognition, securing top honors at the REIWA Awards for six consecutive years. In 2024 and 2025, The Agency was named Top Large Agency by Listings Sold and Value Sold at the reiwa.com Awards Ball, underscoring its leading position in the Western Australian real estate market. In 2023/24, its Perth office generated 3,214 sales from listings, translating to $2.36 billion in property value. The Western Australian office further improved in FY2025, achieving 3,833 property sales valued at $3.3 billion, securing a 9.0% share of the Perth and surrounding markets by value. Individual agents have also received significant accolades; Adam Naumovski placed first as Top Assisted Salesperson by Listings Sold for 206 sales and earned the Grandmaster title for the sixth consecutive year in 2024, with Team Rash securing third place for Top Team by Listings Sold. In 2025, Adam Naumovski and Jarrod O'Neil were recognized as Top 1% Salespersons. The Agency was also a finalist for Inman's Top Luxury Brokerage, Most Innovative Brokerage, and Most Innovative Marketing Campaign in 2024, and ranked #7 by RealTrends among privately held independent brokerages.

9. Competitive Analysis

Major Competitors

The Agency Group Australia Limited operates within a competitive real estate services market. Key competitors include:

BIFM AUS Holdings Pty Ltd

CBRE Australia Pty Limited

CoreLogic Australia Holdings Pty Limited

Opteon Group Holdings Limited

Knight Frank Australia Holdings Pty Ltd

Prudential Investment Company of Australia Pty Ltd

McGrath Limited

Hotel Property Investments Ltd

WOTSO Property

Hauss Pty Ltd

McKean McGregor Pty Ltd

Harris Real Estate Pty Limited

eXp Australia Pty Ltd

Larger, established agencies also present significant competition:

Ray White: Operating over 700 offices with approximately 12,000 agents, achieving $128 billion in property sales in 2024 across Australia and New Zealand.

LJ Hooker: Operating over 400 offices with approximately 4,000 agents.

10. Market Analysis

Market Overview

Australia's real estate industry is a substantial contributor to the national GDP, estimated at 10.6% ($232.7 billion) in 2022. The average price of a residential property in Australia exceeded $1 million for the first time in March 2025, reaching $1,002,500. The number of real estate agencies across Australia has grown by an average of 1.6% annually from 2019 to 2024, with an estimated 44,940 agencies in 2024. The residential property market was valued at approximately $9 trillion in 2021, with over 600,680 sales annually contributing around $437 billion in gross value. The gross commission income market is estimated to be worth approximately $5.68 billion. The market exhibits regional disparities, with strong property price increases observed in Brisbane (4.2%), Sydney (3.8%), and Perth (2.9%). Western Australia offers potential opportunities for East Coast investors due to high yields and relatively lower entry-level prices. The rental market demonstrates resilience, driven by rising interest rates, low wage growth, and undersupply.

11. Strategic Partnerships

The Agency has fostered strategic partnerships to enrich its service offerings and create a vertically integrated real estate services model. These collaborations include:

Aclara Lending: For mortgage financing support.

EastWest Abstract: For title services.

Wander: For vacation rental opportunities.

Closed Escrow: For escrow services.

These partnerships, alongside existing property sales, management, mortgage financing, and conveyancing services, contribute to a comprehensive and integrated client experience.

12. Operational Insights

The Agency's business model is designed to disrupt the real estate sector by streamlining structural layers and offering a compelling value proposition to its agents, characterized by higher commissions and extensive support. This approach enables agents to concentrate on sales, while central teams provide administrative and technical assistance. The company aims for a lean cost structure, with the FY25 cost of doing business reduced to 32.0% of revenue. The Agency's vertically integrated service model creates significant cross-selling opportunities across its various offerings, including sales, property management, mortgage financing, and conveyancing.

13. Future Outlook

Strategic Roadmap

The Agency's strategic roadmap includes the continued consolidation of market share in established regions and expansion into promising high-growth corridors. The company plans to leverage its data and technology advantages and reinvest operational cash flow into initiatives that scale profitably. A key objective is to double the size of its agent team, aiming to capture over 2% of the Australian market. Further enhancements to onboarding, training, coaching, and technology are scheduled for 2026 to strengthen its growth trajectory. The Agency is also actively exploring new business channels and evaluating expansion into fresh markets through strategic partnerships and joint venture opportunities. It seeks to capitalize on industry consolidation by attracting agents to its low-overhead, cloud-based operating platform. Expanding ancillary services like settlements and home loans remains a core part of its future strategy to enhance customer experience and unlock new revenue streams.