Company: PGZ
Filing Date: 2025-07-03
Form Type: N-CSRS
Source: 0001398344-25-012685
Chunk: 13

Company: Principal Real Estate Income Fund
Filing Date: 2025-07-03
Form: N-CSRS
Chunk 13
---
or resources from a parent or affiliate and an assessment of the issuer’s, borrower’s, or counterparty’s management;
the prospects for the industry of the issuer, borrower, or counterparty, as applicable, and multiples (of earnings and/or cash flow) being
paid for similar businesses in that industry; one or more independent broker quotes for the sale price of the portfolio security; and
other relevant factors.

Securities Transactions and Investment Income:
Investment security transactions are accounted for on a trade date basis. Dividend income is recorded on the ex-dividend date. Certain
dividend income from foreign securities will be recorded, in the exercise of reasonable diligence, as soon as the Fund is informed of
the dividend if such information is obtained subsequent to the ex-dividend date and may be subject to withholding taxes in these jurisdictions.
Withholding taxes on foreign dividends have been provided for in accordance with the Fund's understanding of the applicable country's
tax rules and rates. Interest income, which includes amortization of premium and accretion of discount, is recorded on the accrual basis.
Discounts and premiums on commercial mortgage-backed securities purchased are accreted or amortized using the effective interest method.
Realized gains and losses from securities transactions and unrealized appreciation and depreciation of securities are determined using
the specific identification method for both financial reporting and tax purposes. Paydown gains and losses on mortgage-related and other
asset-back securities, if any, are recorded as components of interest income in the Statement of Operations. Interest-only stripped mortgage-backed
securities (“IO Strips”) are securities that receive only interest payments from a pool of mortgage loans. Little to no principal
will be received by the Fund upon maturity of an IO Strip. Periodic adjustments are recorded to reduce the cost of the security until
maturity, which are included in interest income.

| 22 | www.principalcef.com |

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

April 30, 2025 (Unaudited)

Fair Value Measurements: Investments in the
Fund are recorded at their estimated fair value. The Fund discloses the classification of its fair value measurements following a three-tier
hierarchy based on the inputs used to measure fair value. Inputs refer broadly to the assumptions that market participants would use in
pricing the asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs reflect
the assumptions market participants would use in pricing the asset or liability that are developed based on market data obtained from