PRINCIPAL REAL ESTATE INCOME FUND DECLARES MONTHLY DISTRIBUTIONS OF $0.105 PER SHARE

Rhea-AI Summary

Principal Real Estate Income Fund (PGZ) has declared monthly distributions of $0.105 per common share for May, June, and July 2025. Based on the Fund's current net asset value share price of $11.57 (as of March 27, 2025), these distributions represent an annualized distribution rate of 10.89%.

The distributions will be payable on May 30, June 30, and July 31, 2025, with corresponding ex-dates and record dates set for May 15, June 13, and July 17, 2025. The Fund, which trades on the NYSE, is designed as a long-term investment vehicle focused on commercial real estate assets.

Positive

• High annualized distribution rate of 10.89%
• Consistent monthly distribution schedule maintained at $0.105 per share

Negative

• Fund shares may trade at a discount from NAV
• Exposure to below-investment grade (junk) bonds increases risk
• Use of leverage may magnify NAV fluctuations

Insights

Income Investment Specialist

Principal Real Estate Income Fund's (PGZ) declaration of $0.105 monthly distributions provides continuity for income investors with an annualized yield of 10.89% based on the $11.57 NAV. This high yield reflects the fund's strategy of generating income from commercial real estate assets.

The consistency across the May-July 2025 payment schedule signals management's near-term confidence in maintaining this distribution level. However, investors should note the fund's disclosure that distributions may come from multiple sources - including net investment income, realized capital gains, and potentially return of capital. The latter component deserves particular attention, as persistent return of capital distributions not supported by portfolio appreciation can erode NAV over time.

PGZ's structure as a closed-end fund introduces specific considerations beyond the headline yield. The fund employs leverage, which magnifies both potential returns and risks. This amplification effect means the 10.89% distribution rate comes with elevated risk exposure compared to non-leveraged alternatives.

For income-focused portfolios, this announcement provides payment visibility through July 2025, with distributions scheduled for May 30, June 30, and July 31. While the yield appears attractive in today's market environment, investors should evaluate it alongside total return considerations, including potential NAV fluctuations and the fund's typical trading patterns relative to its underlying asset value.

DENVER, April 1, 2025 /PRNewswire/ -- Principal Real Estate Income Fund (the "Fund"), which is traded on the New York Stock Exchange under the symbol "PGZ," announced the declaration of monthly distributions of $0.105 per common share, payable on the dates noted below. Based on the Fund's current net asset value share price of $11.57 (as of market close on March 27, 2025), the distributions represent an annualized distribution rate of 10.89%.

The following dates apply to the distributions declared:

Ex Date	Record Date	Payable Date
May 15, 2025	May 15, 2025	May 30, 2025
June 13, 2025	June 13, 2025	June 30, 2025
July 17, 2025	July 17, 2025	July 31, 2025

RISKS

This press release is not for tax reporting purposes but is being provided to announce the amount of the Fund's distributions. In early 2026, after definitive information is available, the Fund will send shareholders a Form 1099-DIV, if applicable, specifying how the distributions paid by the Fund during the prior calendar year should be characterized for purposes of reporting the distributions on a shareholder's tax return (e.g., ordinary income, long-term capital gain or return of capital). An investment in the Fund is not appropriate for all investors and is not intended to be a complete investment program. The Fund is designed as a long-term investment and not as a trading vehicle.

Investing in the Fund involves risks, including the risk that you may receive little or no return on your investment or that you may lose part or even all of your investment and exposure to below-investment grade investments (i.e., "junk bonds"). The Fund's net asset value will vary and its distribution rate may vary and both may be affected by numerous factors, including changes in the market spread over a specified benchmark, market interest rates and performance of the broader equity markets. Fluctuations in net asset value may be magnified as a result of the Fund's use of leverage. Therefore, before investing you should carefully consider the risks that you assume when you invest in the Fund's common shares.

Securities backed by commercial real estate assets are subject to market risks similar to those of direct ownership of commercial real estate assets including, but not limited to, declines in the value of real estate, declines in rental or occupancy rates and risks related to general and local economic conditions.

The Fund's investment objectives and policies are not designed to seek to return the initial investment to investors that purchase shares.

Sources of distributions to shareholders may include net investment income, net realized short-term capital gains, net realized long-term capital gains and return of capital. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. If a distribution includes anything other than net investment income, the fund provides a Section 19(a) notice of the best estimate of its distribution sources at that time, available at www.principalcef.com. These estimates may not match the final tax characterization (for the full year's distributions) contained in shareholders' 1099-DIV forms after the end of the year. Past performance is not a guarantee of future results.

An investor should consider investment objectives, risks, charges and expenses carefully before investing. To obtain an  annual report or semi-annual report which contains this and other information visit www.principalcef.com or call 855.838.9485.  Please read them carefully before investing.

Shares of closed-end investment companies frequently trade at a discount from their net asset value and initial offering prices.

NOT FDIC INSURED | May Lose Value | No Bank Guarantee

The Fund is a closed-end fund and does not continuously issue shares for sale as open-end mutual funds do. Since the initial public offering, the Fund now trades in the secondary market. Investors wishing to buy or sell shares need to place orders through an intermediary or broker. The share price of a closed-end fund is based on the market's value.

ALPS Advisors, Inc. is the investment adviser to the Fund.

Principal Real Estate Investors LLC is the investment sub-adviser to the Fund. Principal Real Estate Investors LLC is not affiliated with ALPS Advisors, Inc. or any of its affiliates.

ALPS Portfolio Solutions Distributor, Inc. is the FINRA Member firm.

About SS&C Technologies

SS&C is a global provider of services and software for the financial services and healthcare industries. Founded in 1986, SS&C is headquartered in Windsor, Connecticut, and has offices around the world. Some 20,000 financial services and healthcare organizations, from the world's largest companies to small and mid-market firms, rely on SS&C for expertise, scale, and technology. Additional information about SS&C (Nasdaq: SSNC) is available at www.ssctech.com.

About SS&C ALPS Advisors

SS&C ALPS Advisors, a wholly-owned subsidiary of SS&C Technologies, is a leading provider of investment products for advisors and institutions. With over $26.84 billion under management as of December 31, 2024, SS&C ALPS Advisors is an open architecture boutique investment manager offering portfolio building blocks, active insight and an unwavering drive to guide clients to investment outcomes across sustainable income, thematic and alternative growth strategies. For more information, visit www.alpsfunds.com.

About Principal Real Estate Investors

Principal Real Estate Investors manages or sub-advises $100.1 billion in commercial real estate assets, as of December 31, 2024. The firm's real estate capabilities include both public and private equity and debt investment alternatives. Principal Real Estate Investors is the dedicated real estate group of Principal Global Investors, a diversified asset management organization and a member of the Principal Financial Group®.

PRE000444  3/31/2026

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SOURCE Principal Real Estate Income Fund

FAQ

What is the monthly distribution amount announced by PGZ for May-July 2025?

Principal Real Estate Income Fund (PGZ) declared monthly distributions of $0.105 per common share for May, June, and July 2025.

What is PGZ's current annualized distribution rate based on its NAV?

Based on the Fund's NAV of $11.57 (as of March 27, 2025), the distributions represent an annualized distribution rate of 10.89%.

When are the payment dates for PGZ's recently announced distributions?

The distributions are payable on May 30, June 30, and July 31, 2025.

What are the main investment risks associated with PGZ?

Key risks include potential loss of investment, exposure to junk bonds, commercial real estate market risks, NAV fluctuations due to leverage, and shares potentially trading at a discount.