Powerful Equity Opportunities at eXp Australia Explained
THE ESSENTIALS NEED TO KNOW ABOUT EXP REALTY STOCK AND SHAREHOLDINGS
It’s essential to understand any business you invest in and have a financial interest in. So, let’s give you the run-down on eXp World Holdings.
Under its parent company, eXp World Holdings, eXp Realty provides real estate services. It is the world's most rapidly growing cloud-based residential real estate company. It was founded in 2009 by Glann Sanford.
eXp World Holdings became a publicly-traded company in 2013. And 2018 saw eXp up-listed on the NASDAQ.
Fast-forward to today, and eXp World Holdings stock is being publicly traded on the New York Stock Exchange (NASDAQ). It has the ticker symbol “EXPI”. This means that any investor and investment brokerage can buy and sell common stock in eXp Realty.
eXp Realty has been experiencing significant growth in revenue, cash flow, and net income. This growth is partially due to the rapidly increasing number of agents joining eXp, its acquisitions and the commencement of dividend payments quarterly to its shareholders.
eXp Realty is one of several companies which come under eXp World Holdings. Under the eXp World Holdings banner, other companies include Virbela, eXp Commercial, eXp Global, Showcase IDX, and SUCCESS Enterprises.
One of the unique benefits of being an eXp Realty agent is being rewarded with shares in eXp. Agents can get shares in eXp in three different ways just by doing what you would typically do, selling properties.
In other words, it’s a way for real estate agents who are already selling property to get rewarded with equity ownership in a growing company, in addition to their regular sales commissions.
Below we’ll detail on how eXp's Agent Equity Program works for agents transacting in eXp Realty and how agents considering joining eXp can take advantage of the same opportunities.
What We'll Cover on eXp Equity
You can also view this content on eXp Realty Equity on our eXp Equity eXplained video.
HOW CAN YOU EARN EXP EQUITY?
Agents get awarded shares in eXp World Holdings
Every agent in eXp Australia who has sold just one property is an owner in eXp Australia’s parent company eXp World Holdings (NASDAQ: EXPI).
This ownership has been made possible through eXp Realty’s Sustainable Equity Plan, where eXp awards stock in the company to its agents when they settle their first transaction.
There are several ways that eXp agents are awarded stock for completing particular tasks in the company. You earn shares in eXp stock when:
You settle your first transaction – EXPI stock to the value of $300
You reach your $100,000 CAP - EXPI stock to the value of $600
Each agent you bring into eXp settles their first transaction with eXp (awarded once). This is the sponsor equity award - $600 in shares
This is an offer that is re-occurring each year.
(These figures are shown in Australian dollars and, when awarded, will convert to the equivalent number of shares in US dollars).
Once an agent has earned this stock, these awards then have a vesting period of 3-years, which means that you own the shares, but you must hold onto these shares for three years. After which, you are free to do with them what you please – keep or sell.
On a side note, for the stock relating to the sponsor equity award to vest, you and the agent you sponsored both have to remain members of eXp Realty when it's time for the stock to vest.
eXp's ICON Agent Award Program
When agents list and sell properties at a high level in eXp Realty Australia, whether by GCI or transactions, they will become eligible to receive eXp’s annual ICON Agent Award.
As an ICON Agent, you get awarded up to $21,000 in eXp stock upon achieving the company's particular production and cultural goals.
Check out our eXp Realty ICON Agent Award Program page to get complete details and information on the requirements for eligibility.
eXp Agent Equity Program
The optional Agent Equity Program offered by eXp to its agents is another way you can invest in shareholdings in the company.
eXp Australia offers its agents the opportunity to participate in the Agent Equity Program, which gives agents the benefit of purchasing shares in the company at a discounted price.
When you transact as an eXp agent, you can choose to enrol to be paid 5% of every net settled commission you earn with stock in EXPI at a discounted rate - 10% off.
Market value at closing will determine the share price from the final day of trading EXPI stock in that month - the date of issuance.
Agents in eXp can opt-in and out of the Agent Equity Program at any time and participate in the program whenever they so wish, simply by submitting the Opt-In/Opt-Out Form.
SELLING YOUR EXPI SHAREHOLDINGS
Stock acquired under the Agent Equity Program can be bought and sold at any time as it does not have any vesting period.
For shares awarded under the ICON Agent Award Program, Sponsor Equity Award or eXp’s Sustainable Equity Plan, you have to wait until these shares have been vested before being able to sell them.
Upon vesting, you will then be able to sell your shares of EXPI stock through your Shareworks account or transfer your shares to another brokerage.
Access to Shareworks is through your eXp Okta account.
EXP WORLD HOLDINGS SUBSIDIARY COMPANIES
eXp World Holdings owns several companies in addition to its real estate company eXp Realty. These include the following.
Virbela’s technology allows the creation of virtual offices for companies worldwide and is the technology behind the virtual environment of eXp World.
Other companies which utilise Virbela’s virtual office technology include PricewaterhouseCoopers, HTC computing company and Sloan School of Management at MIT.
Rather than just adding it into eXp Realty, eXp World Holdings established a wholly separate commercial agency in 2020 called eXp Commercial.
Now home to real estate agents across all 50 States in the United States, eXp Commercial is soon to be rolled out internationally.
eXp World Holdings further purchased SUCCESS Enterprises in 2020. Established in 1897, SUCCESS is a leading personal development company.
It also publishes SUCCESS magazine and SUCCESS Newsletters and features SUCCESS.com, podcasts, digital training courses, and affiliate social media accounts.
Showcase IDX is a revolutionary platform connecting real estate websites to local MLS.
It’s this connection that allows websites to display local listings. Showcase IDX leads the real estate industry with its robust features and modern and stylish interface.
WHAT WAS EXP'S STOCK SPLIT IN 2021
eXp World Holdings executed a two-for-one stock split on 16 February 2021. This stock split meant that any shareholder of EXPI stock before the split date now had twice the number of shares at at half of the stock price.
The main reason companies undergo a stock split is the affordability of shares. Stock splits make shares more accessible to investors as they become more affordable. Investors can purchase whole shares instead of possibly purchasing more fractions of one share.
As eXp agents are awarded shares relating to production and company growth initiatives, this reasoning was critical to eXp World Holdings and eXp Realty.
Let’s take, for example, the $300 stock award that agents get for their first settlement every year. If the share price is $240 per share, that equals 1.25 shares. But, if the share price is $120 per share, then it's 2.5 shares.
So, without the 2-for-1 stock split execution, if the stock price were to continue to increase, it could mean agents wouldn’t be able to receive even one full share when being awarded stock.
EXP COMPANY EARNINGS AND GROWTH
Over the years, eXp World Holdings has exponentially grown its company cash flow and revenue.
Looking at its earnings, EXPI hadn't reported a positive net income in any quarter prior to Quarter 4 in 2019, which is quite common when it comes to new companies. However, EXPI has seen impressive growth in its company earnings since then.
In 2019, a net loss of approximately $10 million was reported by eXp World Holdings. The company followed this up with over $30 million in positive net income for 2020.
With agent growth skyrocketing to 80,000+ and multiple company acquisitions by eXp World Holdings over the last few years, EXPI has experienced massive revenue growth.
EXPI generated just under $500 million in revenue for 2018. It almost doubled that with $979 million in 2019.
Then 2020 saw EXPI pass a billion dollars in revenue. The company finished the year with a whopping revenue figure of $1.79 billion.
EXPI STOCK AND DIVIDENDS
In 2021, quarterly dividend payments were commenced by eXp World Holdings to its shareholders. These dividends come directly from company earnings with the intention of providing its shareholders with a stream of regular income.
The following dividend payments have been made by eXp World Holdings so far:
April 2021 – $0.025/share
July 2021 – $0.03/share
October 2021 – $0.035/share
January 2022 – $0.04/share
Until the dividend payment gets to its final payout of $0.075/share, it will continue to increase by $0.005 per share each quarter.
Please note that any opinions expressed on this site are our own. We’re not financial advisors. So, before acting on any information provided, make sure you talk with a professional financial advisor.