Company: PGZ
Filing Date: 2025-07-03
Form Type: N-CSRS
Source: 0001398344-25-012685
Chunk: 23

Company: Principal Real Estate Income Fund
Filing Date: 2025-07-03
Form: N-CSRS
Chunk 23
---
.principalcef.com |

| Principal Real Estate Income Fund | Notes to Financial Statements |

April 30, 2025 (Unaudited)

The Fund has a managed distribution plan in accordance
with AAI’s Section 19(b) exemptive order described below (the “Managed Distribution Plan”). Under the Managed Distribution
Plan, to the extent that sufficient investment income is not available on a monthly basis, the Fund will make regular monthly distributions,
which may consist of long-term capital gains and/or return of capital in order to maintain the distribution rate. In accordance with the
Managed Distribution Plan, the Fund made monthly distributions to common shareholders at a fixed monthly rate of $0.105 per common share.

The amount of the Fund's distributions pursuant to
the Managed Distribution Plan are not related to the Fund's performance and, therefore, investors should not make any conclusions about
the Fund’s investment performance from the amount of the Fund’s distributions or from the terms of the Fund’s Managed
Distribution Plan. The Board may amend, suspend or terminate the Managed Distribution Plan at any time without notice to shareholders.

AAI has received an order granting an exemption from
Section 19(b) of the 1940 Act and Rule 19b-1 thereunder to permit the Fund, subject to certain terms and conditions, to include realized
long-term capital gains as a part of its regular distributions to its stockholders more frequently than would otherwise be permitted
by the 1940 Act (generally once per taxable year). To the extent that the Fund relies on the exemptive order, the Fund will be required
to comply with the terms and conditions therein, which, among other things, requires the Fund to make certain disclosures to shareholders
and prospective shareholders regarding distributions, and would require the Board to make determinations regarding the appropriateness
of the use of the distribution policy. Under such a distribution policy, it is possible that the Fund might distribute more than its income
and net realized capital gains; therefore, distributions to shareholders may result in a return of capital. The amount treated as a return
of capital will reduce a shareholder’s adjusted basis in the shareholder’s shares, thereby increasing the potential gain or
reducing the potential loss on the sale of shares. There is no assurance that the Fund will continue to rely on the exemptive order in
the future.

6. CAPITAL TRANSACTIONS

The Fund is a statutory trust established under the
laws of the state of Delaware by an Agreement and Declaration of Trust dated August