Company: PGZ
Filing Date: 2025-07-03
Form Type: N-CSRS
Source: 0001398344-25-012685
Chunk: 17

Company: Principal Real Estate Income Fund
Filing Date: 2025-07-03
Form: N-CSRS
Chunk 17
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 that concentrates in a particular segment of the market will generally be more volatile than a
fund that invests more broadly. Any market price movements, regulatory changes, or economic conditions affecting CMBS, REITs, REIT-like
structures, and real estate more generally, will have a significant impact on the Fund’s performance.

Foreign Currency Risk: The Fund expects to
invest in securities denominated or quoted in currencies other than the U.S. dollar. Changes in foreign currency exchange rates may affect
the value of securities owned by the Fund, the unrealized appreciation or depreciation of investments and gains on and income from investments.
Currencies of certain countries may be volatile and therefore may affect the value of securities denominated in such currencies, which
means that the Fund’s net asset value could decline as a result of changes in the exchange rates between foreign currencies and
the U.S. dollar. These risks often are heightened for investments in smaller, emerging capital markets.

The accounting records of the Fund are maintained
in U.S. dollars. Prices of securities denominated in foreign currencies are translated into U.S. dollars at the closing rates of the exchanges
at period end. Amounts related to the purchase and sale of foreign securities and investment income are translated at the rates of exchange
prevailing on the respective dates of such transactions.

The Fund does not isolate that portion of the results
of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices
of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.

Reported net realized foreign exchange gains or losses
arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions,
and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S.
dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the
fair values of assets and liabilities, other than investments in securities at fiscal period-end, resulting from changes in exchange rates.

A foreign currency contract is a commitment to purchase
or sell a foreign currency at a future date, at a negotiated rate. The Fund may enter into foreign currency contracts to settle specific
purchases or sales of securities denominated in a foreign currency and for protection from adverse exchange rate fluctuation. Risks to
a Fund include the potential inability of the counterparty to meet the terms of the contract.

Market Dis