Company: PGZ
Filing Date: 2025-07-03
Form Type: N-CSRS
Source: 0001398344-25-012685
Chunk: 1

Company: Principal Real Estate Income Fund
Filing Date: 2025-07-03
Form: N-CSRS
Chunk 1
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 either the Fund or its shareholders. The suspension or
termination of the Plan could have the effect of creating a trading discount (if a Fund’s stock is trading at or above net asset
value) or widening an existing trading discount. The Fund is subject to risks that could have an adverse impact on its ability to maintain
level distributions. Examples of potential risks include, but are not limited to, economic downturns impacting the markets, increased
market volatility, companies suspending or decreasing corporate dividend distributions and changes in the Code. Please refer to the Fund’s
prospectus for a more complete description of its risks.

Please refer to the Additional Information section in this shareholder
report for a cumulative summary of the Section 19(a) notices for the Fund’s current fiscal period. Section 19(a) notices for the
Fund, as applicable, are available on the Principal Real Estate Income Fund’s website; www.principalcef.com.

Table of contents

| Performance Overview                          |  2 |
| Statement of Investments                      |  9 |
| Statement of Assets and Liabilities           | 14 |
| Statement of Operations                       | 15 |
| Statements of Changes in Net Assets           | 16 |
| Statement of Cash Flows                       | 17 |
| Financial Highlights                          | 18 |
| Notes to Financial Statements                 | 21 |
| Dividend Reinvestment Plan                    | 32 |
| Additional Information                        |    |
| Portfolio holdings                            | 34 |
| Proxy voting                                  | 34 |
| Section 19(a) notices                         | 34 |
| Stockholder meeting results                   | 35 |
| Unaudited tax information                     | 35 |
| Licensing agreement                           | 36 |
| Custodian and transfer agent                  | 36 |
| Legal counsel                                 | 36 |
| Independent registered public accounting firm | 36 |
| Privacy Policy                                | 37 |

www.principalcef.com

| Principal Real Estate Income Fund | Performance Overview |

April 30, 2025 (Unaudited)

INVESTMENT OBJECTIVE AND PRINCIPAL INVESTMENT STRATEGIES

The Fund’s investment objective is to seek to
provide high current income, with capital appreciation as a secondary objective, by investing in commercial real estate-related securities.
There can be no assurance that the Fund will achieve its investment objective. Under normal market conditions, the Fund will invest at
least 80% of its total assets in commercial real estate-related securities, primarily consisting of commercial mortgage backed securities
(