REITs now driving TSX growth

In fact, for the first time in a decade, this country’s bustling mining sector failed to produce any initial public offerings for either the TSX or TSX Venture exchange during the first three months of the year.

Only the real estate sector came to the market, with three IPOs for the TSX in Q1, raking in a total of $422 million, says the PwC survey.

That change in the status quo is likely to continue, says experts, pointing to the continuing strength of the real estate sector and investor demand that extends beyond brick-and-mortar purchases.

"We believe there could be more to come as retail investors continue to seek yield through REITs," says Dean Braunsteiner, national IPO services leader for PwC. "It's a classic good news/bad news story. The interest in real estate is certainly encouraging, and has been since last year."

Mining isn’t expected to fare as well.

While it has registered at least two new issues on one of Canada's two leading exchanges for every quarter since 2003. That winning streak was broken in the first quarter.

"The complete lack of activity in mining, a sector that has been a pillar of Canada's equity market, is unprecedented," says Braunsteiner. "The availability of money for the costly construction phase of new mines still remains a question mark.”

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