Can The Agency Sustain Growth Amid Rising Competition and Market Challenges?
The Agency Group has delivered a record financial performance in FY2025, with Gross Commission Income surpassing $125 million, driven by strong growth in residential sales and property management. The company’s unique national direct agency model and strategic expansion into emerging markets underpin its positive outlook.
- Record FY2025 Gross Commission Income of $125.3 million, up 11.3% year-on-year
- 442 agents nationally with 6,663 properties sold, capturing 1.25% national market share
- Property management portfolio valued at $37.41 million, growing 2.4% year-on-year
- Operational cash flow positive, funding growth initiatives including recruitment and technology
- Strategic expansion in Queensland and Victoria markets with increasing market share
Record Financial Performance
The Agency Group has reported a landmark year for FY2025, achieving a Gross Commission Income (GCI) of $125.3 million, marking an 11.3% increase over the prior year. This milestone underscores the strength of its national direct agency model, which eschews traditional franchise constraints in favour of a flexible, technology-driven platform supporting 442 agents across Australia.
Notably, the company sold 6,663 properties during the year, representing a 1.25% share of the national residential property market. This growth comes despite a broader market slowdown, highlighting The Agency’s resilience and agent-focused approach that boosts productivity by at least 10%.
Expanding Property Management Footprint
Alongside sales, The Agency’s property management division continues to be a significant growth driver. The portfolio under management now includes nearly 12,000 properties, with an independently valued rent roll of $37.41 million, up 2.4% from the previous year. This recurring revenue stream benefits from economies of scale and rising rental incomes, contributing to a 15.4% increase in property management revenue to $13.5 million.
The company’s strategic partnership with Trilogy Funds has facilitated over $40 million in rent roll acquisitions, enhancing its market position and operational efficiency. The Agency’s ability to integrate third-party portfolios through scalable frameworks positions it well for further expansion in this segment.
Growth Initiatives and Market Expansion
The Agency is actively investing in recruitment and technology to sustain its growth trajectory. Its recruitment efforts focus on attracting high-performing agents and property managers, particularly in emerging markets such as Queensland and Victoria, where market share remains low but is gaining momentum. These states accounted for 12.2% of total sales in FY2025, up from 8.8% the previous year.
Technological innovation remains central to The Agency’s competitive edge, with a proprietary integrated tech stack that streamlines workflows and enhances agent productivity. The company is also piloting new service models under the Rightmove brand to attract independently branded offices, aiming to broaden its national footprint.
Financial Health and Outlook
The Agency’s balance sheet remains robust, supported by positive operational cash flow that funds growth initiatives without reliance on external capital. Despite accounting standards requiring amortisation of certain rent roll assets, significant shareholder value is held off-balance sheet, reflecting the true economic worth of its property management portfolio.
Looking ahead, The Agency targets a GCI of $200 million and aims to increase the average properties managed per property manager from 165 to 180. With a strong management team and scalable business model, the company is well-positioned to capitalize on the large $7 billion commission market and $8 billion property management market nationally.
Bottom Line?
With record results and strategic growth underway, The Agency Group is poised to deepen its market penetration and enhance shareholder value in FY2026.
Questions in the middle?
- How will The Agency sustain growth amid increasing competition in emerging states like Queensland and Victoria?
- What impact will the new Rightmove service model have on agent recruitment and market share?
- How might off-balance sheet rent roll valuations affect investor perceptions and future capital strategies?
