Company: PGZ
Filing Date: 2025-01-03
Form Type: N-CSR
Source: 0001398344-25-000145
Chunk: 41

Company: Principal Real Estate Income Fund
Filing Date: 2025-01-03
Form: N-CSR
Chunk 41
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 www.principalcef.com |

| Principal               
 Real Estate Income Fund | Summary                
 of Updated Information 
 Regarding              
 the Fund               |

October 31, 2024 (Unaudited)

| ● | Casualty                                                                                  
 or condemnation losses, including where liability and casualty insurance does not provide 
 full protection;                                                                          |

| ● | Changes                                                                                     
 in interest rates, tightening lending standards and the availability of credit to refinance 
 such loans at or prior to maturity;                                                         |

| ● | Changes      
 in tax laws; |

| ● | Terrorist            
 threats and attacks; |

| ● | Social                             
 unrest and civil disturbances; and |

| ● | Weather                
 and other acts of God. |

The above factors may impact the ability of a borrower to meet its obligations on the loan. Certain loans may default which could result in either a foreclosure of the property or a restructure of the loan. Such actions may impact the amount of proceeds ultimately derived from the loan, and the timing of receipt of such proceeds may be shorter or longer than the original term of the loan. Losses on the loans will negatively impact the most subordinate CMBS classes first. Any proceeds received from the loans will generally be applied to the most senior bonds outstanding before any payments are made to the subordinate bonds. The occurrence of defaults and losses on the loans may result in downgrades of the CMBS by the NRSROs.

In addition the following risks apply to investments in CMBS (several of which also apply more generally to investments in debt securities and other asset-backed securities):

Credit Quality and Selection.In addition to the risks listed above, CMBS are affected by the quality of the credit extended.

As a result, the quality of the CMBS is dependent upon the selection of the commercial mortgages for each issuance and the cash flow generated by the commercial real estate assets. Risk factors related to the foregoing include:

| ● | Potential                                          
 lack of diversification in certain CMBS issuances; |

| ● | Dependence                                                                            
 on the skills, decision-making and experience of the various issuers in selecting the 
 commercial mortgages backing the issuances; and                                       |

| ● | Adverse                                
 borrower selection within an issuance. |

Amortization, Refinance or Sale .Commercial real estate loans are generally not fully amortizing, which means that they may have a significant principal balance or “balloon” payment due on maturity. Commercial loans with a balloon payment involve a greater risk to a lender than fully amortizing loans because the ability of a borrower to make a