Company: PGZ
Filing Date: 2025-07-03
Form Type: N-CSRS
Source: 0001398344-25-012685
Chunk: 20

Company: Principal Real Estate Income Fund
Filing Date: 2025-07-03
Form: N-CSRS
Chunk 20
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 leverage risk to shareholders will increase. Borrowings will be subject to interest costs, which may or may not be recovered
by appreciation of the securities purchased. In certain cases, interest costs may exceed the return received on the securities purchased.

The Fund maintains a $50,000,000 line of credit with
State Street Bank and Trust Company (“SSB”), which by its terms expires on September 4, 2025, subject to the restrictions
and terms of the credit agreement. As of April 30, 2025, the Fund has drawn down $32,000,000 from the SSB line of credit, the maximum
borrowing outstanding during the period was $32,000,000. The Fund is charged an interest rate of 1.10% (per annum) above the one-month
SOFR (Secured Overnight Financing Rate) or 5.39%, as of the last renewal date, for borrowing under this credit agreement, on the last
day of the interest period. The Fund is charged a commitment fee on the average daily unused balance of the line of credit at a rate of
0.25% (per annum). The Fund pledges its investment securities as the collateral for the line of credit per the terms of the agreement.
The average annualized interest rate charged and the average outstanding loan payable for the six months ended April 30, 2025, was as
follows:

| Average Interest Rate            |     |   |       5.49 | % |
|:---------------------------------|:----|:--|-----------:|:--|
| Average Outstanding Loan Payable |     | $ | 32,000,000 |   |

4. INVESTMENT ADVISORY AND OTHER AGREEMENTS

ALPS Advisors, Inc. serves as the Fund’s investment
adviser pursuant to an Investment Advisory Agreement with the Fund. As compensation for its services to the Fund, AAI receives an annual
investment advisory fee of 1.05% based on the Fund’s average Total Managed Assets (as defined below). Pursuant to an Investment
Sub-Advisory Agreement, AAI has retained Principal Real Estate Investors, LLC (‘‘PrinRei’’) as the Fund’s
sub-advisor and pays PrinRei an annual fee of 0.55% based on the Fund’s average Total Managed Assets. Investment advisory fees are
paid monthly.

ALPS Fund Services, Inc. (‘‘AFS’’),
an affiliate