Company: PGZ
Filing Date: 2025-07-03
Form Type: N-CSRS
Source: 0001398344-25-012685
Chunk: 12

Company: Principal Real Estate Income Fund
Filing Date: 2025-07-03
Form: N-CSRS
Chunk 12
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ees"). Net asset value per share is
computed by dividing the value of the Fund’s total assets, less its liabilities by the number of shares outstanding.

The Board has established the following procedures
for valuation of the Fund’s assets under normal market conditions. Marketable securities listed on foreign or U.S. securities exchanges
generally are valued at closing sale prices or, if there were no sales, at the mean between the closing bid and ask prices on the exchange
where such securities are primarily traded.

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

April 30, 2025 (Unaudited)

The Fund values commercial mortgage-backed securities
("CMBS") and other debt securities not traded in an organized market on the basis of valuations provided by an independent pricing
service, approved by the Board, which uses information with respect to transactions in such securities, interest rate movements, new issue
information, cash flows, yields, spreads, credit quality, and other pertinent information as determined by the pricing service, in determining
value. If the independent primary or secondary pricing service is unable to provide a price for a security, if the price provided by the
independent primary or secondary pricing service is deemed unreliable, or if events occurring after the close of the market for a security
but before the time as of which the Fund values its common shares would materially affect net asset value, such security will be valued
at its fair value as determined in good faith under procedures approved by the Board.

Pursuant to Rule 2a-5 under the Investment Company
Act of 1940, the Board has appointed the Adviser to serve as the valuation designee to perform fair value determinations for investments
in the Fund. In fair valuing the Fund’s investments, consideration is given to several factors, which may include, among others,
the following: the fundamental business data relating to the issuer, borrower, or counterparty; an evaluation of the forces which influence
the market in which the investments are purchased and sold; the type, size and cost of the investment; the information as to any transactions
in or offers for the investment; the price and extent of public trading in similar securities (or equity securities) of the issuer, or
comparable companies; the coupon payments, yield data/cash flow data; the quality, value and salability of collateral, if any, securing
the investment; the business prospects of the issuer, borrower, or counterparty, as applicable, including any ability to obtain money