Company: PGZ
Filing Date: 2025-01-03
Form Type: N-CSR
Source: 0001398344-25-000145
Chunk: 26

Company: Principal Real Estate Income Fund
Filing Date: 2025-01-03
Form: N-CSR
Chunk 26
---
: Tax components of distributable earnings/(accumulated deficit) are determined in accordance with income tax regulations which may differ from composition of net assets reported under accounting principles generally accepted in the United States. Accordingly, for the year ended October 31, 2024, certain differences were reclassified. The reclassifications were as follows:

|                                   |     | Paid-in Capital |         |   |     | Distributable 
 Earnings      
 /(Accumulated 
 Deficit)      |        |
|:----------------------------------|:----|:----------------|:--------|:--|:----|:--------------|-------:|
| Principal Real Estate Income Fund |     | $               | (36,288 | ) |     | $             | 36,288 |

The differences are primarily attributed to return of capital distributions received from underlying securities.

| 32 | www.principalcef.com |

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

October 31, 2024

As of October 31, 2024, the components of distributable earnings/(accumulated deficit) on a tax basis were as follows:

| Accumulated Capital Loss 
 Unrealized Appreciation  |     |   | (36,803,128 
 1,500,972   | ) |
|:-------------------------|:----|:--|:------------|:--|
| Total                    |     | $ | (35,302,156 | ) |

Capital Losses: Under current law, capital losses maintain their character as short-term or long-term and are carried forward to the next tax year without expiration. As of the current fiscal year end, the following amounts are available as carry forwards to the next tax year:

|                                   |     | Short-Term |           |     | Long-Term |            |
|:----------------------------------|:----|:-----------|----------:|:----|:----------|-----------:|
| Principal Real Estate Income Fund |     | $          | 3,198,934 |     | $         | 33,604,194 |

Tax Basis of Investments: Net unrealized appreciation/(depreciation) of investments based on federal tax cost as of October 31, 2024, were as follows:

| Cost of investments for income tax purposes                       |     | $ | 111,990,733 |   |
| Gross appreciation on investments (excess of value over tax cost) |     | $ |  10,064,376 |   |
| Gross depreciation