Company: EGP
Filing Date: 2025-12-05
Form Type: 424B5
Source: 0001140361-25-044550
Chunk: 81

Company: EASTGROUP PROPERTIES INC
Filing Date: 2025-12-05
Form: 424B5
Chunk 81
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 class of stock upon which the return of capital distribution is made. This share-by-share approach could result in taxable gain with respect to some of a U.S. shareholder’s shares, even though the U.S. shareholder’s aggregate basis for such shares would be sufficient to absorb the portion of the distribution that is not treated as being made out of our current and accumulated earnings and profits. Although these proposed Treasury Regulations have been withdrawn, the notice withdrawing the proposed Treasury Regulations reiterated that the Treasury Department and IRS believe that under current law the results of such distributions should derive from the consideration received by a shareholder on a share-by-share basis. Distributions that we properly designate as capital gain dividends will be taxed as long-term capital gains (to the extent they do not exceed our actual net capital gain for the taxable year) without regard to the period for which the shareholder has held its stock. However, corporate U.S. shareholders may be required to treat up to 20% of certain capital gain dividends as ordinary income. In addition, if we incur such gain, U.S. shareholders may be required to treat a portion of any capital gain dividend as “unrecaptured Section 1250 gain,” generally taxable at a higher rate than long-term capital gain rates for non-corporate U.S. shareholders. Capital gain dividends are not eligible for the dividends-received deduction for corporations or the 20% deduction for qualified REIT dividends for non-corporate U.S. shareholders. Ordinary income and capital gain must be allocated proportionately among taxable dividends on both our preferred stock and common stock. Instead of paying capital gain dividends, we may choose to retain all or part of our net capital gain and designate such amount as “undistributed capital gain.” We will be subject to regular U.S. federal corporate income tax on any undistributed capital gains, and our earnings and profits will be adjusted appropriately. On such a designation, a U.S. shareholder:

| (1) | will include in its income as long-term capital gains its proportionate share of such undistributed capital gains; |

| (2) | will be deemed to have paid its proportionate share of the tax paid by us on such undistributed capital gains and receive a credit or refund for the amount of tax deemed paid by it; and |

| (3) | will increase the tax basis in its stock by the difference between the amount of capital gain included in its income and the amount of tax it is deemed to have paid. |

Dividends declared by us in October, November or December and