Company: EGP
Filing Date: 2025-12-05
Form Type: S-3ASR
Source: 0001140361-25-044456
Chunk: 28

Company: EASTGROUP PROPERTIES INC
Filing Date: 2025-12-05
Form: S-3ASR
Chunk 28
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 we generally will be allowed to deduct dividends paid to our shareholders, and, as a result, we generally will not be subject to U.S. federal corporate income tax on that portion of our ordinary income and net capital gain that we currently distribute to our shareholders. This treatment substantially eliminates “double taxation” (that is, taxation at both the corporate and shareholder levels) that generally results from an investment in a corporation. We intend to make distributions to our shareholders on a regular basis as necessary to avoid material U.S. federal income tax and to comply with the REIT requirements. See “— Qualification as a REIT—Annual Distribution Requirements” below. Notwithstanding the foregoing, even if we qualify for taxation as a REIT, we nonetheless may be subject to U.S. federal income tax or excise tax in certain circumstances, including the following:

| 23. | We will be required to pay U.S. federal income tax at regular corporate rates on our undistributed REIT taxable income. REIT taxable income is the taxable income of the REIT, subject to specified adjustments, including a deduction for dividends paid. |

| 24. | We may be subject to tax at the highest U.S. federal corporate income tax rate on net income from the sale or other disposition of “foreclosure property” (generally, property acquired by reason of default on a lease or indebtedness held by us) that is held primarily for sale to customers in the ordinary course of business or other nonqualifying income from foreclosure property. |

| 25. | We will be subject to a 100% U.S. federal income tax on net income from “prohibited transactions” (generally, certain sales or other dispositions of “dealer property,” which is property held primarily for sale to customers in the ordinary course of business and which is not foreclosure property) unless the gain is recognized in a “taxable REIT subsidiary” (a “TRS”) or the property has been held by us for at least two years and certain other requirements are satisfied. |

| 26. | If we fail to satisfy either the 75% gross income test or the 95% gross income test (each as discussed below) for a taxable year, but nonetheless maintain our qualification as a REIT pursuant to certain relief provisions, we will be subject to a 100% U.S. federal income tax on the product of (i) the amount by which we failed the 75% gross income test or the 95% gross income test (wh