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 the declaration of the Fund’s first three regular monthly distributions of $0.135 per common share, payable on the dates noted below. Based on the Fund’s Initial Offering Price of $20.00 and current share price of $20.00 (as of close on July 26, 2013), the distributions represent an annualized distribution rate of 8.10%.

"We are very pleased with the progress of investing the Fund's assets so far. The weakness in the fixed income markets has provided an attractive buying opportunity and this has allowed us to exceed our original distribution expectations," said Marc Peterson of Principal Real Estate Investors, LLC and lead Portfolio Manager of the Fund.

The following dates apply to the distributions declared:

Ex Date     Record Date     Payable Date August 15, 2013     August 19, 2013     August 29, 2013 September 12, 2013     September 16, 2013     September 26, 2013 October 17, 2013     October 21, 2013     October 31, 2013

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 2014, 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.

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

Investors should consider the Fund's investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other information about the fund. For more complete information about the Fund or to obtain a copy of the prospectus, call your financial professional, visit the Fund’s site at www.principalcef.com or call 855.838.9485. Please read the prospectus carefully before investing.

Because the Fund is newly organized, its Common Shares have a limited history of public trading. Shares of closed-end investment companies frequently trade at a discount from their net asset value and initial offering prices. The risks associated with this characteristic of closed-end investment companies may be greater for investors expecting to sell their shares in a relatively short period after completion of the initial public offering.

NOT FDIC INSURED | May Lose Value | No Bank Guarantee

About ALPS - Advisor for the Fund

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 subadvises $47.0 billion in commercial real estate assets, as of June 30, 2013. 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®.

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