Equity in eXp Realty Stock and eXp Agent Equity Program
THE ESSENTIALS OF EXP REALTY STOCK AND THE EXP AGENT EQUITY PROGRAM
What We'll Cover on eXp Agent Equity Program and Stock Awards
ABOUT EXP WORLD HOLDINGS - EXPI STOCK
Overview of eXp World Holdings - EXPI Stock
It’s essential to understand any business you invest in and have a financial interest in. So, let’s give you a quick 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 Glenn Sanford.
eXp World Holdings became a publicly-traded company in 2013. And 2018 saw the company 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 the company.
The company 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 the company, 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. Other companies include Virbela, eXp Commercial and Global, Showcase IDX, and SUCCESS Enterprises.
One of the unique benefits of being an eXp Realty agent is being rewarded with EXPI shares in the company. Agents can get given EXPI shares 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 how the eXp Agent Equity Program works for transacting agents and how agents considering joining the company can take advantage of the same opportunities.
EXP AGENT EQUITY PROGRAM AND EXP REALTY STOCK AWARDS
eXp Realty Awards Agents with Shares in eXp World Holdings
Every agent in eXp Australia who has sold just one property is an owner in the parent company eXp World Holdings (NASDAQ: EXPI).
This ownership has been made possible through the company’s Sustainable Equity Plan, where eXp Realty awards stock in the company to its agents when they settle their first transaction.
There are several ways that eXp Realty awards its agents with stock for completing particular tasks in the company. You earn shares in eXp Realty stock when:
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Your first transaction in the company settles – EXPI stock to the value of NZ$250
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You reach your NZ$140,000 CAP - EXPI stock to the value of NZ$500
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Each agent you bring into the company settles their first transaction with (awarded once). This is the sponsor equity award - EXPI stock to the value of NZ$500
This is an offer that is re-occurring each year.
(These figures are shown in New Zealand 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 the company when it's time for the stock to vest.
Learn more about eXp World Holdings.
eXp's ICON Agent Award Program
When agents list and sell properties at a high level in eXp New Zealand, 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 NZ$23,500 in eXp Realty stock upon achieving the company's particular production and cultural goals.
Once you achieve your Commission Cap of NZ$140,000 and then have a minimum of NZ$12,500 post-cap transaction fees paid. Or, achieve an annual GCI of NZ$750,000 (minimum closed transactions) and ICON qualifying fee is equal to NZ$12,500 less capped status fees paid. Then you will qualify as an ICON agent.
After satisfying the production criteria, eXp Realty awards you with NZ$15,000 worth of company EXPI stock.
Then, when you participate and give back to agents through ICONversations, Team Talks and Materminds to meet the cultural requirements, you will get another NZ$8,500 worth of EXPI stock.
So you'll receive up to NZ$23,500 worth of EXPI stock every year you achieve ICON status. Plus you'll still get a pretty trophy, the prestige and global announcements.
Contact us if you'd like to get complete details and information on the requirements for ICON agent eligibility.
eXp Agent Equity Program
The optional eXp Agent Equity Program offered by the company to its agents is another way you can invest in shareholdings in the company.
eXp New Zealand offers its agents the opportunity to participate in the eXp 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 can opt-in and out of the eXp Agent Equity Program at any time and participate in the program whenever they so wish, simply by submitting the Opt-In/Opt-Out Form.
The eXp Agent Equity Program is another way that the company provides viable options to its agents to help them secure a better future.
SELLING YOUR EXP REALTY STOCK SHAREHOLDINGS
eXp Realty Stock acquired under the eXp Agent Equity Program can be bought and sold at any time as it does not have any vesting period.
For shares that aren't purchased under the eXp Agent Equity Program, vesting periods may apply. For stock 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. Similarly, all stock acquired under the eXp Agent Equity Program can be transferred to another brokerage at any time, since there's no applied vesting.
Access to Shareworks is through your Okta account provided by the company.
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
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.
eXp Commercial
Rather than just adding it into eXp Realty, the company 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, this commercial agency is soon to be rolled out internationally.
SUCCESS Enterprises
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
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 agents in the company 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 REALTY COMPANY EARNINGS, GROWTH AND SUSTAINABILITY
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 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 so far:
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April 2021 – $0.025/share
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July 2021 – $0.03/share
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October 2021 – $0.035/share
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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.
