Principal Real Estate Income Fund Announces Board Approval of New Advisory and New Sub-Advisory Agreements and the Annual Shareholder Meeting

Principal Real Estate Income Fund (NYSE: PGZ) (the “Fund”) announces that on March 15, 2018 the Board of Trustees of the Fund approved a new investment advisory agreement with ALPS Advisors, Inc. (“ALPS Advisors”), the Fund’s investment adviser, and a new sub-advisory agreement with Principal Real Estate Investors, LLC (“PrinREI”), the Fund’s investment sub-adviser, subject to approval of such agreements by shareholders of the Fund. The new investment advisory agreement and new sub-advisory agreement were considered in connection with the recently announced transaction in which DST Systems, Inc. (“DST”), the parent company of ALPS Advisors, has entered into a definitive agreement with SS&C Technologies Holdings, Inc. (“SS&C”) wherein SS&C will acquire DST (the “Transaction”). The Transaction, when completed, will result in a change of control of ALPS Advisors, which may be deemed to result in an “assignment” of the Fund’s existing investment advisory agreement and sub-advisory agreement, resulting in their automatic termination. The Transaction is not expected to impact the day-to-day operations of the Fund and the portfolio managers of the Fund will remain the same. Except for the commencement dates, the new advisory and new sub-advisory agreements have materially the same terms as the corresponding currently effective agreements. Completion of the Transaction is subject to a number of conditions. DST and SS&C currently expect to complete the Transaction before the end of the second quarter of 2018.

To provide for continuity in the operation of the Fund following the completion of the Transaction, the Board also approved interim agreements with respect to each of ALPS Advisors and PrinREI that will allow the firms to continue to serve in their respective roles as the Fund’s adviser and sub-adviser for a period of up to 150 days or until the date that shareholder approval of the new agreements is received.

Accordingly, shareholders of the Fund will be asked to approve the new investment advisory agreement and new sub-advisory agreement at the annual meeting of shareholders to be held on May 11, 2018. The record date for the Fund’s annual meeting of shareholders is March 26, 2018.

The Principal Real Estate Income Fund

The investment objective of the Fund is to seek to provide high current income, with capital appreciation as a secondary objective, by investing in commercial real estate related securities. The Fund had approximately $194.76 million of total assets and 6,899,800 common shares outstanding as of October 31, 2017.

The Fund is a closed-end fund and does not continuously issue shares for sale as open-end mutual funds do. 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. PrinREI is not affiliated with ALPS Advisors or any of its affiliates.

About ALPS Advisors, Inc.

Through its subsidiary companies, ALPS Holdings, Inc. (“ALPS”) is a leading provider of innovative investment products and customized servicing solutions to the financial services industry. Founded in 1985, Denver-based ALPS delivers its asset management and asset servicing solutions through offices in Boston, New York, Seattle, and Toronto. ALPS is a wholly owned subsidiary of Kansas City-based DST Systems, Inc. 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, LLC

Principal Real Estate Investors advises or subadvises $46.5 billion in real estate assets. 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®.

In connection with the presentation of the new investment advisory agreement and new sub-advisory agreement to the Fund’s shareholders for approval, the Fund intends to file relevant materials with the Securities and Exchange Commission (the “SEC”), including a preliminary proxy statement on Schedule 14A. Following the filing of the definitive proxy statement with the SEC, the Fund will mail the definitive proxy statement and a proxy card to each shareholder entitled to vote at the annual meeting. Shareholders are urged to carefully read these materials in their entirety (including any amendments or supplements thereto) and any other relevant documents that the Fund will file with the SEC when they become available because they will contain important information. The proxy statement and other relevant materials (when available), and any and all documents filed by the Fund with the SEC, may be obtained for free at the SEC’s website at www.sec.gov.

This communication is not a solicitation of a proxy from any Fund shareholder. The Fund, its investment adviser and sub-adviser and certain of their respective directors/trustees, officers and affiliates may be deemed under the rules of the SEC to be participants in the solicitation of proxies from shareholders in connection with the proposals. Information about the investment adviser and sub-adviser, trustees and officers of the Fund may be found in its annual reports and annual proxy statements previously filed with the SEC.

ALPS Portfolio Solutions Distributor, Inc., FINRA Member.

NOT FDIC INSURED | May Lose Value | No Bank Guarantee

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DST Global Public Relations
Laura M. Parsons, +1-816-843-9087
[email protected]