PGZ Principal Real Estate Income Fund

Principal Real Estate Income Fund (the “Fund”), which is traded on the New York Stock Exchange under the symbol “PGZ,” announced today that its Board of Trustees has approved the adoption of a managed distribution plan whereby the Fund will, beginning in October 2017, make monthly distributions to common shareholders set initially at a fixed monthly rate of $0.11 per common share. This information updates and supersedes information provided in the press release dated August 7, 2017, regarding the Fund’s distribution for October, 2017. The managed distribution plan represents a reduction from the Fund’s recent distributions of $0.145 per common share. This reduction is due to proceeds from maturing bonds being reinvested in a lower yield environment. Based on the Fund’s current share price of $19.15 as of market close on September 12, 2017, the distributions represent an approximate annualized distribution rate of 6.89%.

The following dates apply to the distributions declared:

Ex Date       Record Date       Payable Date October 12, 2017       October 13, 2017       October 26, 2017 November 16, 2017       November 17, 2017       November 30, 2017 December 14, 2017       December 15, 2017       December 28, 2017 January 11, 2018       January 12, 2018       January 25, 2018            

A call will be held to provide an update on the Fund:

September 26, 20174:15pm ETDial in: 866-395-6628Access code: 86021413

The primary purpose of the managed distribution plan is to provide shareholders with a constant, but not guaranteed, fixed distribution and is intended to narrow the discount between the market price and the NAV of the Fund’s common shares, but there is no assurance that the plan will be successful in doing so.

Under the managed distribution plan, to the extent that sufficient investment income is not available on a monthly basis, the Fund’s distributions may consist of long-term capital gains and/or return of capital in order to maintain the distribution rate. Return of capital includes distributions paid by the Fund in excess of its net investment income and such excess is distributed from the Fund’s assets. Investors should not make any conclusions about the Fund’s investment performance from the amount of the Fund’s distributions or from the terms of the Fund’s managed distribution plan.

Shareholders will receive a notice in connection with each distribution that will disclose the amounts and sources of income for the distribution. Information reported in the notice to shareholders are only estimates and are not being provided for tax reporting purposes. Shareholders should refer to Form 1099-DIV for the character and amount of distributions for income tax reporting purposes.

The Board may amend the terms of the plan or terminate the plan at any time without prior notice to the Fund’s shareholders. The amendment or termination of the managed distribution plan could have an adverse effect on the market price of the Fund’s common shares.

RISKS

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This press release is not for tax reporting purposes but is being provided to announce the amount of the Fund’s distributions. In early 2018, 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. The rate is the monthly distribution per share times 12, divided by the end of month market price. Past performance is not a guarantee of future results.

An investor should consider investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus, 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 ALPS

ALPS provides customized asset servicing and asset gathering solutions to the financial services community through an entrepreneurial culture based on the commitment to “Do Things Right.” Founded in 1985, ALPS continues to actively promote all of its various business segments, from asset servicing through ALPS Fund Services, Inc. to asset gathering through ALPS Distributors, Inc. and ALPS Advisors, Inc. Headquartered in Denver, with offices in Boston, New York, Seattle, and Toronto, ALPS, a wholly-owned subsidiary of DST Systems, Inc., today represents more than 400 employees, over 200 clients, and an executive team that has been in place for more than 18 years. For more information about ALPS and its services, visit www.alpsinc.com. Information about ALPS products is available at www.alpsfunds.com.

About Principal Real Estate Investors

Principal Real Estate Investors manages or sub-advises $71.8 billion in commercial real estate assets, as of December 31, 2016. 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®.

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ALPS Advisors, Inc.Patricia Lobato, 720-917-0644www.alpsinc.comorPrincipal Real Estate InvestorsJaime Naig, 515-247-0798naig.jaime@principal.com