||The operating performance of 200 equity real estate investment trusts (REITs), following seasoned equity offerings (SEO) made between 1990 and 1996, are examined. There are flat to increasing levels of operating performance changes prior to the SEO. As well, there are increasing raw performance changes and flat industry-adjusted performance changes following the SEO. Cross-sectional test results on the operating performance changes are consistent with existing theory. These results constrast with industrial firm results, where performance changes are negatve following an SEO. This difference may be due to the structural variations in REITs that limit levels of internal capital available to REIT managers.