Company: PGZ
Filing Date: 2025-01-03
Form Type: N-CSR
Source: 0001398344-25-000145
Chunk: 1

Company: Principal Real Estate Income Fund
Filing Date: 2025-01-03
Form: N-CSR
Chunk 1
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 amount of these distributions or from the terms of the Plan. The Fund’s
total return performance on net asset value is presented in its financial highlights table.

The Board may amend, suspend or terminate the Fund’s
Plan at any time without prior notice if it deems such action to be in the best interest of either the Fund or its shareholders.
The suspension or termination of the Plan could have the effect of creating a trading discount (if a Fund’s stock is trading
at or above net asset value) or widening an existing trading discount. The Fund is subject to risks that could have an adverse
impact on its ability to maintain level distributions. Examples of potential risks include, but are not limited to, economic downturns
impacting the markets, increased market volatility, companies suspending or decreasing corporate dividend distributions and changes
in the Code. Please refer to the Fund’s prospectus for a more complete description of its risks.

Please refer to the Additional Information section in this
shareholder report for a cumulative summary of the Section 19(a) notices for the Fund’s current fiscal period. Section 19(a)
notices for the Fund, as applicable, are available on the Principal Real Estate Income Fund’s website; www.principalcef.com.

Table of contents

| Performance Overview                                        |  2 |
| Report of Independent Registered Public Accounting Firm     |  9 |
| Statement of Investments                                    | 10 |
| Statement of Assets and Liabilities                         | 16 |
| Statement of Operations                                     | 17 |
| Statements of Changes in Net Assets                         | 18 |
| Statement of Cash Flows                                     | 19 |
| Financial Highlights                                        | 20 |
| Notes to Financial Statements                               | 23 |
| Dividend Reinvestment Plan                                  | 35 |
| Approval of Investment Advisory and Sub-Advisory Agreements | 37 |
| Trustees & Officers                                         | 40 |
| Additional Information                                      |    |
| Portfolio holdings                                          | 48 |
| Proxy voting                                                | 48 |
| Section 19(a) notices                                       | 48 |
| Unaudited tax information                                   | 49 |
| Licensing agreement                                         | 49 |
| Custodian and transfer agent                                | 49 |
| Legal counsel                                               | 49 |
| Independent Registered Public Accounting Firm               | 49 |
| Summary of Updated Information Regarding the Fund           | 50 |
| Privacy Policy                                              | 75 |

www.principalcef.com

| Principal Real Estate Income 
 Fund                         | Performance 
 Overview    |