PRINCIPAL REAL ESTATE INCOME FUND CONTINUES SHARE REPURCHASE PROGRAM
The Principal Real Estate Income Fund has announced the renewal of its share repurchase program, allowing the Fund to purchase up to 2.1% of its outstanding common shares from January 21, 2025, to January 21, 2026. The program, implemented under ALPS Advisors' direction, aims to enhance shareholder value and potentially reduce the discount between market price and net asset value (NAV). The Board believes this initiative will benefit remaining shareholders by increasing NAV through discounted share acquisitions while potentially improving share trading liquidity.
The program will be executed on a discretionary basis, with no guarantee of specific discount levels, purchase amounts, or market price increases. The Fund emphasizes this is designed as a long-term investment vehicle, subject to various risks including those related to commercial real estate assets and below-investment grade investments.
Il Principal Real Estate Income Fund ha annunciato il rinnovo del suo programma di riacquisto di azioni, consentendo al Fondo di acquistare fino al 2,1% delle sue azioni ordinarie in circolazione dal 21 gennaio 2025 al 21 gennaio 2026. Il programma, attuato sotto la direzione di ALPS Advisors, mira a valorizzare gli azionisti e potenzialmente ridurre lo sconto tra il prezzo di mercato e il valore patrimoniale netto (NAV). Il Consiglio ritiene che questa iniziativa porterà benefici agli azionisti rimanenti aumentando il NAV attraverso l'acquisto di azioni scontate, aumentando nel contempo la liquidità del trading delle azioni.
Il programma sarà eseguito su base discrezionale, senza alcuna garanzia di livelli di sconto specifici, importi di acquisto o aumenti del prezzo di mercato. Il Fondo sottolinea che è progettato come un veicolo di investimento a lungo termine, soggetto a vari rischi, tra cui quelli relativi agli attivi immobiliari commerciali e agli investimenti di qualità inferiore.
El Principal Real Estate Income Fund ha anunciado la renovación de su programa de recompra de acciones, permitiendo al Fondo comprar hasta el 2.1% de sus acciones ordinarias en circulación desde el 21 de enero de 2025 hasta el 21 de enero de 2026. El programa, implementado bajo la dirección de ALPS Advisors, tiene como objetivo mejorar el valor para los accionistas y potencialmente reducir el descuento entre el precio de mercado y el valor neto de los activos (NAV). El Consejo cree que esta iniciativa beneficiará a los accionistas restantes al aumentar el NAV mediante adquisiciones de acciones con descuento, mientras que potencialmente mejorará la liquidez de la negociación de acciones.
El programa se ejecutará de manera discrecional, sin garantía de niveles de descuento específicos, montos de compra o aumentos de precios de mercado. El Fondo enfatiza que está diseñado como un vehículo de inversión a largo plazo, sujeto a diversos riesgos, incluyendo aquellos relacionados con activos inmobiliarios comerciales e inversiones de menor calidad.
프린시펄 리얼 에스테이트 인컴 펀드는 주식 환매 프로그램의 갱신을 발표하였으며, 이 프로그램은 펀드가 2025년 1월 21일부터 2026년 1월 21일까지 유통 가능한 보통주 2.1%까지 매입할 수 있게 허용합니다. ALPS Advisors의 지침에 따라 시행되는 이 프로그램은 주주 가치를 향상시키기 위해 설계되었으며, 시장 가격과 순자산 가치(NAV) 간의 할인폭을 줄이는 데 기여할 수 있습니다. 이사회는 이 이니셔티브가 남은 주주에게 혜택을 줄 것이며, 할인된 주식 매입을 통해 NAV를 증가시키고 잠재적으로 주식 거래의 유동성을 향상시킬 것이라고 믿고 있습니다.
이 프로그램은 재량에 따라 실행되며, 특정 할인 수준, 구매 금액 또는 시장 가격 인상에 대한 보장을 제공하지 않습니다. 펀드는 이것이 다양한 위험, 특히 상업용 부동산 자산 및 투자 등급 이하 투자와 관련된 위험에 노출된 장기 투자 수단으로 설계되었다고 강조합니다.
Le Principal Real Estate Income Fund a annoncé le renouvellement de son programme de rachat d'actions, permettant au Fonds d'acheter jusqu'à 2,1 % de ses actions ordinaires en circulation du 21 janvier 2025 au 21 janvier 2026. Le programme, mis en œuvre sous la direction d'ALPS Advisors, vise à améliorer la valeur pour les actionnaires et potentiellement réduire l'écart entre le prix du marché et la valeur nette des actifs (NAV). Le Conseil estime que cette initiative bénéficiera aux actionnaires restants en augmentant le NAV par le biais d'acquisitions d'actions à prix réduits tout en améliorant potentiellement la liquidité de la négociation des actions.
Le programme sera exécuté sur une base discrétionnaire, sans garantie de niveaux de remise spécifiques, de montants d'achat ou d'augmentations de prix de marché. Le Fonds souligne que ce programme est conçu comme un véhicule d'investissement à long terme, soumis à divers risques, notamment ceux liés aux actifs immobiliers commerciaux et aux investissements de qualité inférieure.
Der Principal Real Estate Income Fund hat die Verlängerung seines Aktienrückkaufprogramms angekündigt, das es dem Fonds erlaubt, bis zu 2,1% seiner ausstehenden Stammaktien vom 21. Januar 2025 bis zum 21. Januar 2026 zu erwerben. Das Programm, das unter der Leitung von ALPS Advisors umgesetzt wird, zielt darauf ab, den Aktionärswert zu steigern und möglicherweise den Abschlag zwischen Marktpreis und Nettoinventarwert (NAV) zu reduzieren. Der Verwaltungsrat ist der Ansicht, dass diese Initiative den verbleibenden Aktionären zugutekommen wird, indem der NAV durch den Erwerb von Aktien mit Abschlägen erhöht wird, während gleichzeitig die Handelsliquidität der Aktien potenziell verbessert wird.
Das Programm wird auf freiwilliger Basis durchgeführt, ohne Garantie für spezifische Abschlagsniveaus, Kaufbeträge oder Marktpreiserhöhungen. Der Fonds betont, dass es als langfristiges Anlagevehikel konzipiert ist, das verschiedenen Risiken unterliegt, darunter solche, die mit gewerblichen Immobilienanlagen und Investitionen in unterinvestmentwürdige Anlagen verbunden sind.
- Share repurchase program can increase NAV for remaining shareholders
- Program may enhance market liquidity for the fund's shares
- Strategic approach to reducing market price to NAV discount
- scope of repurchase at only 2.1% of outstanding shares
- No guarantee of specific purchase amounts or price improvements
- Implementation is purely discretionary with uncertain execution timeline
Insights
The Principal Real Estate Income Fund's share repurchase program renewal represents a calculated move to address the fund's market price discount to NAV. By authorizing the repurchase of up to
The timing of this program, starting January 2025, indicates a strategic approach to capital allocation rather than an urgent response to market conditions. While share repurchases at a discount are typically accretive to NAV, the program's effectiveness will largely depend on market conditions and execution. The lack of specific discount level targets or committed purchase amounts introduces uncertainty about the program's ultimate impact.
For investors, this represents a modest positive signal about management's commitment to shareholder value, but shouldn't be viewed as a primary catalyst for significant price appreciation or discount narrowing.
The fund's approach to addressing its trading discount through a discretionary buyback program aligns with industry best practices but carries execution risks. Historical data from similar closed-end fund buyback initiatives shows mixed results in sustainably narrowing price-to-NAV discounts. The program's success will largely depend on market sentiment toward commercial real estate assets, which currently face headwinds from higher interest rates and sector-specific challenges.
The
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 services and software for the financial services and healthcare industries. Founded in 1986, SS&C is headquartered in
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
About SS&C Technologies
Principal Real Estate Investors manages or sub-advises
PRE000436 12/18/2025
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SOURCE Principal Real Estate Income Fund
FAQ
What is the size of Principal Real Estate Income Fund's 2025 share repurchase program?
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How will the share repurchase program benefit shareholders?
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