Company: EGP
Filing Date: 2025-12-05
Form Type: S-3ASR
Source: 0001140361-25-044456
Chunk: 68

Company: EASTGROUP PROPERTIES INC
Filing Date: 2025-12-05
Form: S-3ASR
Chunk 68
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ively, 10% or less in value of such class of stock throughout the shorter of the five-year period ending on the date of the sale, exchange or other taxable disposition or the non-U.S. shareholder’s holding period. |

In addition, provided that a class of our stock continues to be regularly traded on an established securities market, a non-U.S. shareholder generally will not incur tax under FIRPTA on a disposition of shares of a non-publicly traded class of our stock, if any, if the fair market value of all of the shares of such non-regularly traded class of stock acquired by such non-U.S. shareholder did not exceed 5% of the fair market value of our regularly traded class of stock with the lowest fair market value, determined as of the most recent acquisition date and subject to special rules if stock is convertible into a regularly traded class and certain anti-abuse rules. If our stock that was sold or other disposed of by a non-U.S. shareholder were considered a U.S. real property interest with respect to the non-U.S. shareholder, gain on the sale, exchange or other taxable disposition of such stock would be subject to taxation under FIRPTA. Specifically, under FIRPTA, the gain would be treated as income effectively connected with a U.S. trade or business, and a non-U.S. shareholder would be subject to regular U.S. income tax with respect to any gain in the same manner as a taxable U.S. shareholder, subject to any applicable alternative minimum tax; provided that the 30% branch profits tax will not apply to a corporate non-U.S. shareholder if the gain is treated as such effectively connected income as a result of FIRPTA. In addition, if the sale, exchange or other taxable disposition of our stock were subject to taxation under FIRPTA, and if shares of such stock were not considered regularly traded on an established securities market, the purchaser of such stock generally would be required to withhold and remit to the IRS 15% of the purchase price. Redemptions of our Stock Subject to the application of FIRPTA by reason of being attributable in whole or part to gain from sales or exchanges by us of U.S. real property interests, and unless the recipient qualifies for the FIRPTA exception for holders of not more than 10% of a regularly traded class of our stock, a distribution by us in redemption of any redeemable preferred stock we may issue could be treated either as a taxable disposition of shares (treated as described