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Principal Real Estate Income Fund Increases Monthly Distributions to $0.14 Per Share - Announces Conference Call Scheduled for Tuesday, February 4, 2014, at 3:00 PM EST

January 30, 2014

DENVER --(BUSINESS WIRE)-- 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 $0.14 per common share, payable on the dates noted below. Based on the Fund’s current share price of $17.21 (as of market close on January 29, 2014 ), the distributions represent an annualized distribution rate of 9.76%. This new rate represents an increase over the Fund’s previous distributions. "Since the last distributions were declared, the Fund has employed leverage to Management's desired level and has remained fully invested consistent with its investment strategy. The Fund has benefitted from the initial funding at the end of June 2013 which occurred during a period of volatility and allowed us to buy Commercial Mortgage-Backed Securities and Global REIT Securities at yields higher than our original targets. Since June 25, 2013 , prices on the securities of the Fund's holdings have appreciated due to improvements in the overall market, improving real estate fundamentals, and portfolio management decisions which have led to excess income. Based on these factors, we are pleased to announce an increase of the monthly distributions to $0.14 per share," said Marc Peterson , lead portfolio manager of the Fund, which is sub-advised by Principal Real Estate Investors, LLC , and advised by ALPS Advisors, Inc. The following dates apply to the distributions declared: Ex Date Record Date Payable Date February 13, 2014 February 18, 2014 February 27, 2014 March 13, 2014 March 17, 2014 March 27, 2014 April 10, 2014 April 14, 2014 April 24, 2014 Principal Real Estate Investors, LLC announced today that it will hold a conference call to discuss Principal Real Estate Income Fund . Led by a member of the portfolio management team, the call is open to the public and will cover the Fund’s strategy, the current state of the market, and the portfolio management team’s investment outlook. Date: February 4, 2014 at 3:00 PM EST Toll Free Dial-In number: (800) 852-8156 Conference ID: 36515964 Replay number: (855) 859-2056 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. 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. A portion of the distribution may be treated as paid from sources other than net income, including but not limited to short-term capital gain, long-term capital gain and return of capital. The final determination of the source of all distributions, including the percentage of qualified dividend income, is made after year-end . Past performance is not guarantee of future results. 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 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 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. 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 sub-advises $48.7 billion in commercial real estate assets, as of December 31, 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 , 720-917-0644 www.alpsinc.com or Principal Real Estate Investors Jaime Naig , 515-247-0798 naig.jaime@principal.com Source: Principal Real Estate Income Fund


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