I was having a discussion with a friend regarding selecting companies that grow fast. The general agreement would be either:

Asset Light Businesses that are easily scalable (ideally that generates a lot of cash to sustain growth) Companies that gear up more to grow
Regarding the second point, we touched on REITs.

You see REIT asset class has been a strong performer for quite some as stated by Chris of Treeofprosperity here. I actually went to have a look at the other markets as I was wondering is it because of a more Asian mentality about properties that real estate was outperforming.

Interestingly, it seems that REITs have generally performed well over the past years (one such article is here).

It led to a discussion that perhaps, the REITs actually have much higher gearing?

You see, normally for REITs, we use Debt-to-Asset ratios, as compared to companies where we use Debt-to-Equity ratio. Using Debt