Company: PGZ
Filing Date: 2025-01-03
Form Type: N-CSR
Source: 0001398344-25-000145
Chunk: 40

Company: Principal Real Estate Income Fund
Filing Date: 2025-01-03
Form: N-CSR
Chunk 40
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 relate to the pool of underlying assets in which the CMBS represents an interest. CMBS may be backed by obligations (including certificates of participation in obligations) that are principally secured by commercial real estate loans or interests therein having a multi-family or commercial use, such as shopping malls, other retail space, office buildings, industrial or warehouse properties, hotels, nursing homes and senior living centers. CMBS are subject to particular risks, including lack of standardized terms, shorter maturities than residential mortgage loans and payment of all or substantially all of the principal only at maturity rather than regular amortization of principal. Securities backed by commercial real estate assets are subject to securities market risks as well as risks similar to those of direct ownership of commercial real estate loans because those securities derive their cash flows and value from the performance of the commercial real estate underlying such investments and/or the owners of such real estate. These risks include:

| ● | Declines                     
 in the value of real estate; |

| ● | Declines                      
 in rental or occupancy rates; |

| ● | Risks                                             
 related to general and local economic conditions; |

| ● | Dependency                                                                    
 on management skills of the borrower or third-party property management firm; |

| ● | Risk                                                                           
 depending on the timing of cash flows from the underlying mortgage properties; |

| ● | Possible                                                                      
 lack of available mortgage funds to refinance the mortgage loans at maturity; |

| ● | Overbuilding; |

| ● | Extended                 
 vacancies in properties; |

| ● | Increases                                                         
 in property taxes and operating expenses, including energy costs; |

| ● | Changes                                                                                 
 in zoning laws and other governmental rules, regulation and fiscal policies; compliance 
 with existing legal and regulatory requirements, including environ-mental controls and  
 regulations;                                                                            |

| ● | Risks                                                                                      
 related to the ability of a property to attract and retain tenants, including those listed 
 in this section, as well as the ability of a property owner to pay leasing commissions,    
 provide adequate maintenance and insurance, pay tenant improvement costs and make other    
 tenant concessions;                                                                        |

| ● | Expenses                                           
 incurred in the cleanup of environmental problems; |

| ● | Costs                                                                                    
 and delays involved in enforcing rights of a property owner against tenants that default 
 under the terms of leases or seek protection of bankruptcy laws;                         |

| ● | Risks                                                                                     
 related to the type and use of a particular commercial property, e.g., hospitals, nursing 
 homes, hospitality properties and other property types;                                   |

| 52 |