Gibraltar Capital provides research coverage on The Agency Group – a growth company that should appeal to investors that understand property markets, and have a risk appetite to invest in a diverse portfolio of real estate assets at a cyclical low.
Key Drivers For The Agency
– Building out the platform. Property Sales and Property Management are the two key profit drivers for The Agency and both dependent upon agent growth. The Agency offers the most flexibility for agents to work how they want to work. With focus on costs and agents looking to maximise revenue across the value chain, The Agency provides the best alternative for each agent to concentrate on their own business.
– Disrupt and consolidate. The Agency is a disruptor. The huge changes we will see with regard to operating models post the Coronavirus lockdown will see agents migrate to low overhead, cloud based operating platforms. Smaller players will not survive. The Agency is uniquely placed to capitalise on its model and generate considerable gains from consolidating the market as business models change.
– What does post Coronavirus real estate look like. Real Estate is a cyclical business. When we see large moves in prices due to a dislocation such as the current market, any short-term bumps will generally be followed by a rush of activity. Assuming there is no further outbreak in Australia, once the market digests the financial stress from the economic lockdown The Agency should see tailwinds for a number of years.
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