Company: EGP
Filing Date: 2025-12-05
Form Type: 424B5
Source: 0001140361-25-044550
Chunk: 54

Company: EASTGROUP PROPERTIES INC
Filing Date: 2025-12-05
Form: 424B5
Chunk 54
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 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 (whichever amount is greater), multiplied by (ii) a fraction intended to reflect our profitability. |

| 27. | If we fail to satisfy any of the REIT asset tests (as discussed below), and the failure is not a failure of the 5% or the 10% asset test that qualifies under the De Minimis Exception but the failure does qualify under |

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the General Exception, both as described below under “ —Qualification as a REIT—Asset Tests,” then we will have to pay an excise tax equal to the greater of (i) $50,000 and (ii) an amount determined by multiplying the net income generated during a specified period by the assets that caused the failure by the highest U.S. federal corporate income tax rate.

| 28. | If we fail to satisfy any REIT requirements (other than the REIT gross income test or asset test requirements) and we qualify for a reasonable cause exception, then we may retain our REIT qualification if we pay a penalty of $50,000 for such failure. |

| 29. | We will be subject to a nondeductible 4% excise tax on the excess of the required distribution over the sum of amounts actually distributed and amounts retained for which U.S. federal income tax was paid, if we fail to distribute during each taxable year at least the sum of (i) 85% of our REIT ordinary income for the year, (ii) 95% of our REIT capital gain net income for the year and (iii) any undistributed taxable income from prior taxable years. |

| 31. | We will be subject to a 100% penalty tax on some payments we receive (or on certain expenses deducted by our TRSs) if arrangements among us, our tenants, and/or our TRSs are not comparable to similar arrangements among unrelated parties. |

| 32. | Taxable income earned by our TRSs or any other subsidiaries that are taxable as non-REIT C corporations will be subject to regular U.S. federal corporate income tax. |

No assurance can be given that the amount of any such U.S