Company: PGZ
Filing Date: 2025-07-03
Form Type: N-CSRS
Source: 0001398344-25-012685
Chunk: 22

Company: Principal Real Estate Income Fund
Filing Date: 2025-07-03
Form: N-CSRS
Chunk 22
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 the Board may determine in accordance with the provisions of applicable law and of the declaration
and bylaws of the Fund and with resolutions of the Board as from time to time in force. Under normal market conditions, the Fund’s
policy is to utilize leverage through Borrowings (as defined below) and through the issuance of preferred shares (if any) in an amount
that represents approximately 33 1/3% of the Fund’s total assets, including proceeds from such Borrowings and issuances (or approximately
50% of the Fund’s net assets) (collectively, ‘‘Limited Leverage’’). ‘‘Borrowings’’
are defined to include: amounts received by the Fund pursuant to loans from banks or other financial institutions; amounts borrowed from
banks or other parties through reverse repurchase agreements; amounts received by the Fund from the Fund’s issuance of any senior
notes or similar debt securities. Other than with respect to reverse repurchase agreements, Borrowings do not include trading practices
or instruments that, according to the SEC or its staff, may cause senior securities concerns, and are intended to include transactions
that are subject to the asset coverage requirements in Section 18 of the 1940 Act for the issuance of senior securities evidencing indebtedness
(e.g., bank borrowings and the Fund’s issuance of any senior notes or similar securities) and senior securities in the form of stock
(e.g., the Fund’s issuance of preferred shares).

5. DISTRIBUTIONS

The Fund intends to make a monthly distribution to
common shareholders after payment of interest on any outstanding borrowings or dividends on any outstanding preferred shares. Distributions
to shareholders are recorded by the Fund on ex-dividend date. The Fund may also retain cash reserves if deemed appropriate by PrinRei
to meet the terms of any leverage or derivatives transactions. Such distributions shall be administered by GIDS. While a portion of the
Fund’s distributed income may qualify as qualified dividend income, all or a portion of the Fund’s distributed income may
also be fully taxable. Any such income distributions, as well as any distributions by the Fund of net realized short-term capital gains,
will be taxed as ordinary income. A portion of the distributions the Fund receives from its investments may be treated as return of capital.
While the Fund anticipates distributing some or all of such return of capital, it is not required to do so in order to maintain its status
as a regulated investment company under Subchapter M of the Code.

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