Principal Real Estate Income Fund Adopts Share Repurchase Program

Rhea-AI Summary

The Board of Trustees of Principal Real Estate Income Fund has approved a share repurchase program to buy back up to 5% of its outstanding common shares starting January 19, 2021, until January 19, 2022. This initiative aims to enhance shareholder value and reduce the discount between the market price and the net asset value (NAV) of the Fund's shares. The program allows targeted repurchases in the open market, potentially increasing NAV and providing liquidity. However, there are no guarantees regarding share purchases or market price increases.

Positive

• Share repurchase program may enhance shareholder value.
• Targeted acquisitions at a discount to NAV could increase NAV and benefit remaining shareholders.

Negative

• No assurance that market price will increase due to share repurchases.
• Investment in the Fund involves risks of low or negative returns.

DENVER, Dec. 16, 2020 /PRNewswire/ -- The Board of Trustees (the "Board") of Principal Real Estate Income Fund (the "Fund"), announced today that it has approved a share repurchase program.  Under the share repurchase program, the Fund may purchase up to 5% of its outstanding common shares beginning January 19, 2021, in the open market, until January 19, 2022.  As part of its evaluation of options to enhance shareholder value, the Board has authorized ALPS Advisors, Inc. (the "Advisor") to repurchase the Fund's common shares at such times and in such amounts as the Advisor reasonably believes may enhance shareholder value.

The Board and the Advisor continually analyze options to enhance shareholder value and potentially reduce the discount between the market price of the Fund's common share and the net asset value per share ("NAV").  The Board and the Advisor believe that the share repurchase program may further these goals because the program allows the Fund to acquire its shares in the open market at a discount to NAV, which will increase the NAV and thereby benefit remaining shareholders while potentially providing additional liquidity in the trading of the fund shares.  The Board will monitor the repurchase program and will continue to consider strategic options to enhance shareholder value in the long-term.

The Fund's repurchase program will be implemented on a discretionary basis under the direction of the Advisor.  There is no assurance that the Fund will purchase shares at any specific discount level or in any specific amount or that the market price of the Fund's shares will increase as a result of any share repurchases.

RISKS

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.

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 investment and financial software-enabled services and software for the global financial services and healthcare industries. Founded in 1986, SS&C is headquartered in Windsor, Connecticut and has offices around the world. Some 18,000 financial services and healthcare organizations, from the world's largest institutions to local firms, manage and account for their investments using SS&C's products and services. For more information, visit www.ssctech.com.

About ALPS Advisors

ALPS Advisors, Inc., a wholly owned subsidiary of SS&C Technologies, Inc., is a leading provider of investment products for advisors and institutions.  With over $12 billion in assets under management (as of September 30, 2020), the firm provides access to asset classes and boutique asset managers in real assets, alternatives, thematic/factor and fixed income through both ETF and open-end mutual fund structures. For more information, visit www.alpsfunds.com.

About Principal Real Estate Investors

Principal Real Estate Investors manages or sub-advises $85.4 billion in commercial real estate assets, as of September 30, 2020. 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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SOURCE Principal Real Estate Income Fund

FAQ

What is the share repurchase program for PGZ?

The share repurchase program allows Principal Real Estate Income Fund to buy back up to 5% of its outstanding common shares from January 19, 2021, to January 19, 2022.

How does the share repurchase program affect PGZ shareholders?

The program aims to enhance shareholder value by potentially increasing the net asset value (NAV) of remaining shares.

What are the risks associated with investing in PGZ?

Investors may encounter low or no returns, and investment performance can be influenced by market conditions, including property value declines.

When does the PGZ repurchase program begin?

The share repurchase program for PGZ is set to begin on January 19, 2021.

Will PGZ guarantee an increase in share price due to the repurchase program?

There is no assurance that the market price of PGZ shares will increase as a result of the repurchase program.