Company: EGP
Filing Date: 2025-12-05
Form Type: S-3ASR
Source: 0001140361-25-044456
Chunk: 67

Company: EASTGROUP PROPERTIES INC
Filing Date: 2025-12-05
Form: S-3ASR
Chunk 67
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.S. person. Because our common stock is publicly traded, and we may issue other classes of publicly traded stock, we cannot guarantee that we are or will continue to be a domestically controlled qualified investment entity. Notwithstanding the foregoing, if we qualify as a domestically controlled qualified investment entity, pursuant to certain “wash sale” rules under FIRPTA, a non-U.S. shareholder may be treated recognizing gain that is effectively connected with a U.S. trade or business under FIRPTA to the extent that such non-U.S. shareholder (i) disposes of our stock within a certain period prior to a distribution, any portion of which, but for the disposition, would have been treated by the non-U.S. shareholder as gain from sale or exchange of a U.S. real property interest and (ii) directly or indirectly (including through certain affiliates) reacquires our stock within certain prescribed periods. However, this wash sale rule will not apply to a disposition and reacquisition of a class of our stock which is regularly traded on an established securities market within the United States if the non-U.S. shareholder did not own more than 5% of such class of stock at any time during the 1-year period ending on the date of the distribution. Moreover, because the amount of gain that is treated as effectively connected with a U.S. trade or business is limited to the portion of the intervening distribution which, but for the disposition, would have been treated by the non-U.S. shareholder as gain from the sale or exchange of a U.S. real property interest under FIRPTA, this wash sale rule also should not apply if, as described above in the context of distributions attributable to the sale or exchange of a U.S. real property interest, the non-U.S. shareholder did not own more than 10% of such class of stock at any time during the one-year period ending on the date of the applicable distribution. Even if we do not qualify as a domestically controlled qualified investment entity at the time a non-U.S. shareholder sells its stock, our stock sold or otherwise disposed of by such non-U.S. shareholder would not be considered a U.S. real property interest if:

| (1) | the stock sold or otherwise disposed of by the non-U.S. shareholder is part of a class of our stock that is considered regularly traded on an established securities market under applicable Treasury Regulations; and |

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| (2) | the selling non-U.S. shareholder owned, actually or construct