TSX Growth Now Bolstered By REITs Rather Than Traditional Mining Sector

Posted by Alan Zunec on Wednesday, April 10th, 2013 at 2:40pm.

Rather than Canada’s mining sector, which typically produces a number of public offerings on the TSX or the TSX Venture exchanges, it is the REITs that are showing to be the super stars of 2013’s third quarter. That mining sector had no public offerings at all.

The real estate sector, on the other hand, brought three IPOs to the table, making its investors some $422 million according to a survey by PwC. Experts believe that this trend will continue. The real estate world now extends beyond the typical home purchases and that fact is showing up in the market numbers.

Investors are becoming more interested in REITs because of the positive yield possibilities. People are simply more interested in real estate at the moment than they are in mining, and that’s been the case for a few months now.

Mining did offer two issues per quarter since back in 2003, putting them on at least one of Canada’s leading exchanges, but that streak has ended. The mines have seen a decrease in activity that before now hasn’t been experienced in Canada. There is also a question of whether there will be available funds to open new mines. The construction phase is costly and the results are not always guaranteed.

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