Company: EGP
Filing Date: 2025-07-23
Form Type: 10-Q
Source: 0000049600-25-000100
Chunk: 162

Company: EASTGROUP PROPERTIES INC
Filing Date: 2025-07-23
Form: 10-Q
Item: Part I, Item 2
Chunk 162
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.  Included in these costs are management’s estimates for the portions of internal costs (primarily personnel costs) deemed related to such development activities.  The internal costs are allocated to specific development properties based on development activity.

RECENT ACCOUNTING PRONOUNCEMENTS

See Note 21 in the Notes to Consolidated Financial Statements. 

SUPPLEMENTAL U.S. FEDERAL INCOME TAX CONSIDERATIONS 

The following discussion supplements and updates the disclosures under the heading “Certain United States Federal Income Tax Considerations” in the prospectus dated December 16, 2022, contained in our Registration Statement on Form S-3 (File No. 333-268821) filed with the Securities and Exchange Commission (the “SEC”) on December 16, 2022, (the “S-3 Tax Disclosure”) and as supplemented by the disclosures under the heading “Supplemental U.S. Federal Income Tax Considerations” in our Annual Report on Form 10-K filed with the SEC on February 12, 2025 (together with the S-3 Tax Disclosure, the “Existing Tax Disclosure”). Capitalized terms herein that are not otherwise defined shall have the same meaning as when used in the Existing Tax Disclosure.

On July 4, 2025, H.R. 1, informally known as the One Big Beautiful Bill Act (the “OBBB”), was enacted.  The OBBB makes major changes to the Code, including some provisions of the Code that affect the taxation of REITs and their investors.  In particular:

•For taxable years beginning on or after January 1, 2026, the OBBB relaxed the REIT asset test requirement with respect to taxable REIT subsidiaries, providing that not more than 25% (relaxed from 20%) of the gross value of a REIT’s assets may be represented by securities of one or more taxable REIT subsidiaries. 

•The OBBB permanently extended the section 199A pass-through qualified business income deduction, generally allowing certain individuals, trusts and estates to deduct 20% of the aggregate amount of qualified REIT dividends distributed by a REIT.  This deduction was due to expire for tax years beginning after December 31, 2025.  

To the extent the information set forth in the Existing Tax Disclosure is inconsistent with this supplemental information, this supplemental information supersedes the information in the Existing Tax Disclosure. This supplemental information is provided on the same basis and subject to the same qualifications