Company: EGP
Filing Date: 2025-12-05
Form Type: 424B5
Source: 0001140361-25-044550
Chunk: 85

Company: EASTGROUP PROPERTIES INC
Filing Date: 2025-12-05
Form: 424B5
Chunk 85
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 of the proceeds of the sale of our stock to some shareholders. Further, the payor will generally be required to backup withhold on any payments at the current rate of 24% if:

| (1) | the payee fails to furnish a taxpayer identification number, or TIN, to the payor or establish an exemption from backup withholding; |

| (2) | the IRS notifies the payor that the TIN furnished by the payee is incorrect; |

| (3) | the payee fails to certify under the penalty of perjury that the payee is not subject to backup withholding under the Code; or |

| (4) | there has been a notified payee underreporting with respect to dividends described in Code Section 3406(c). |

Some U.S. shareholders, including corporations and tax-exempt organizations, will be exempt from backup withholding. Any amounts withheld under the backup withholding rules from a payment to a shareholder will be allowed as a credit against the shareholder’s U.S. federal income tax and may entitle the shareholder to a refund, provided that the required information is furnished to the IRS on a timely basis. Taxation of U.S. Tax-Exempt Shareholders A U.S. tax-exempt entity, including qualified employee pension, profit-sharing trusts and qualified individual retirement accounts, generally is exempt from U.S. federal income tax on its income, except to the extent that such income is “unrelated business taxable income” or “UBTI.” UBTI generally includes (i) any income or gain not sufficiently related to a tax-exempt organization’s exempt purpose, other than certain passive investment income such as dividends, interest, rents from real property and capital gains, and (ii) debt-financed income derived from property not sufficiently related to such exempt purpose that is subject to “acquisition indebtedness.” A U.S. tax-exempt shareholder that is subject to tax on its UBTI will be required to separately compute its taxable income and loss for each unrelated trade or business activity, as determined under applicable Treasury Regulations, for purposes of determining its UBTI. . Distributions we make to a U.S. tax-exempt shareholder or gains from a U.S. tax-exempt shareholder’s disposition of our common stock or preferred stock generally will not constitute UBTI unless the exempt organization’s stock is debt-financed property (e.g., the shareholder has incurred acquisition indebtedness with respect to such stock). However, if we are a “pension-held REIT,” this general