Principal Real Estate Income Fund

What Principal Real Estate Income Fund does

Principal Real Estate Income Fund (NYSE: PGZ) is a publicly traded, non-diversified closed-end investment company established on June 25, 2013, and headquartered in Denver, Colorado. The fund's stated objective is to provide high current income with capital appreciation as a secondary objective by investing in higher-yielding commercial real estate-related debt and equity securities. Under its investment policy, the fund invests at least 80% of total assets in commercial real estate-related securities, typically allocating 40-70% to commercial mortgage-backed securities (CMBS) and 30-60% to other real estate-related securities including REITs, spanning both US and non-US markets. The fund is permitted to invest in both investment grade and below investment grade CMBS and uses leverage up to 40% of total assets through borrowings, preferred share issuance, and derivative instruments including credit default swaps, interest rate swaps, currency futures, and forwards for hedging purposes.

The fund is managed by ALPS Advisors, Inc. as investment adviser, with Principal Real Estate Investors LLC (an affiliate of Principal Global Investors) serving as investment sub-adviser. Principal Real Estate brings six decades of commercial real estate experience and a top-tier global real estate investment platform covering all four quadrants of commercial real estate (public/private equity and debt). Distributions are declared monthly at $0.105 per common share, representing an annualized distribution rate of 11.28% on NAV of $11.17 as of June 26, 2026. The fund's five-year average annual total return was 5.14% through February 28, 2026. Distribution composition has ranged from approximately 71-73% net investment income and 27-29% return of capital.

Go-to-market is conducted through financial intermediaries, broker-dealers, and financial advisors, with distribution handled by ALPS Portfolio Solutions Distributor, Inc. (a FINRA member). Investors access the fund through secondary market trading on the NYSE rather than direct subscription. The fund's customer base spans income-focused retail investors, institutional investors (pension funds, endowments, foundations), and secondary market traders seeking leveraged exposure to commercial real estate debt and equity markets.

Name

Principal Real Estate Income Fund

Legal name

Principal Real Estate Income Fund

Website

https://principalcef.com

Company type

Public

Founded year

2013

Operating status

Operating

Headcount range

11–50 employees

Short description

Principal Real Estate Income Fund (NYSE: PGZ) is a publicly traded closed-end investment fund that invests in commercial real estate-backed securities, primarily CMBS and REITs, targeting high current income with capital appreciation. It serves income-focused retail and institutional investors through NYSE secondary market trading.

Ownership category

akta.pro rank

Product category

Closed-End Real Estate Investment Fund

NAICS

Portfolio Management and Investment Advice (523940), Other Investment Pools and Funds (5259)

SIC

Real Estate Investment Trusts (6798), Asset-Backed Securities (6189)

akta.pro industry

PRIMARYFSAAAKAD

REITs & Listed Real Estate Securities

Financial & Insurance/Asset & Wealth Management/Asset Management — Real Assets (Real Estate, Infrastructure, Natural Resources)

SECONDARYBPAJAMAJ

Real Estate Portfolio & Fund Management (Institutional/REIT/PE)

Business & Public Services/Real Estate Services (Brokerage, Property Management)/Real Estate Asset & Portfolio Management

Keywords

• Closed-end fund
• Commercial real estate securities
• CMBS investments
• REIT investments
• Real estate income

Headquarters

HQ city

Denver

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2C

Offering type

Services

Cost components

Operations, Personnel, Marketing or Sales, Others

Revenue model

1. Investment Income from CMBS: The fund generates income primarily through investments in commercial mortgage-backed securities (CMBS), which provide interest payments from underlying commercial real estate loans. The fund invests in both investment grade and below investment grade CMBS.
2. REIT Dividends and Capital Appreciation: The fund invests in REITs and REIT-like entities which generate dividend income and potential capital appreciation through equity ownership in commercial real estate properties and mortgages.
3. Monthly Distributions to Shareholders: The fund distributes monthly dividends of $0.105 per share to common shareholders, representing an annualized distribution rate of approximately 11.28% of NAV. Distributions are sourced from net investment income, capital gains, and return of capital.

Pricing tiers

Go-to-market motion1 record

Distribution channels2 records

Marketing channels1 record

Core offering

The Principal Real Estate Income Fund is a non-diversified, closed-end investment company that invests at least 80% of its total assets in commercial real estate-related securities, primarily commercial mortgage-backed securities (CMBS) and REITs. The fund seeks to provide high current income through monthly distributions, with capital appreciation as a secondary objective, and trades on the NYSE under ticker PGZ. The fund is professionally managed by ALPS Advisors, Inc. as investment adviser and Principal Real Estate Investors LLC as sub-adviser.

Product overview

Principal Real Estate Income Fund (PGZ) is a single closed-end investment fund product. It operates as a non-diversified, closed-end investment company traded on the NYSE that invests in commercial real estate-backed securities, including commercial mortgage-backed securities (CMBS) and REITs, targeting high current income with capital appreciation. The fund relies on Principal Real Estate Investors' experience in U.S. CMBS and global real estate securities markets for its investment strategy.

Differentiator

Problem solved

Functional benefit

Products and services

• Principal Real Estate Income Fund (PGZ) A non-diversified, closed-end investment company that invests in higher-yielding commercial real estate-related debt and equity securities, primarily commercial mortgage-backed securities (CMBS) and REITs. Designed for investors seeking high current income with capital appreciation as a secondary objective through a professionally managed fund that trades on the secondary market.

Quantifiable outcome

• 11.28% annualized distribution rate
• +3 more outcomes

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Three partnerships are on record, tiered core and minor.

• ALPS Advisors, Inc.coreOthers · 25 June 2013ALPS Advisors, Inc. serves as the investment adviser to the Principal Real Estate Income Fund. ALPS is an open architecture boutique investment manager offering portfolio building blocks, active insight, and strategies across sustainable income, thematic and alternative growth. The adviser is responsible for overall fund management and administration.
• Principal Real Estate Investors LLCcoreOthers · 25 June 2013Principal Real Estate Investors LLC serves as the investment sub-adviser to the fund. The firm is a top 10 global real estate manager with over six decades of experience investing in commercial real estate. The sub-adviser provides proprietary research, fundamental analysis, modeling, and real estate underwriting to drive security selection and portfolio management.
• ALPS Portfolio Solutions Distributor, Inc.minorChannel Partner/ Reseller/ DistributorALPS Portfolio Solutions Distributor, Inc. serves as the fund's distributor and is a FINRA Member. The firm handles distribution of fund shares through broker-dealer networks.

Scale indicators9 records

Recent moves4 records

Expansion highlights3 records

Direct peers

• Cohen & Steers Quality Income Realty Fund: NYSE-listed closed-end fund (RQI) focused on income-producing real estate equities managed by Cohen & Steers. Directly comparable to PGZ as a listed REIT-focused CEF delivering high current income to investors.
• Cohen & Steers REIT and Preferred Income Fund: NYSE-listed closed-end fund (RNP) combining REIT equities and preferred securities for high current income. Overlaps significantly with PGZ in listed real estate securities exposure and income mandate.
• Nuveen Real Estate Income Fund: NYSE-listed closed-end fund (NURE) managed by Nuveen investing in REITs and real estate-related securities to provide high current income. Directly comparable to PGZ in strategy and target investor base.
• Cohen & Steers Real Estate Opportunities and Income Fund: NYSE-listed closed-end fund (RLTY) targeting high current income from real estate-related securities including CMBS and REITs. Closely comparable to PGZ in mandate, asset mix, and income orientation.
• Tortoise Essential Assets Income Fund: NYSE-listed closed-end fund (TEAF) focused on essential assets income including real estate securities. Comparable to PGZ in its listed, income-oriented real assets strategy.

Emerging players

• Aberdeen Income Credit Strategies Fund: NYSE-listed closed-end fund (ACP) focused on credit-oriented income strategies including real estate-related credit. Comparable to PGZ in its closed-end income mandate and credit orientation.
• Western Asset Mortgage Defined Opportunity Fund: NYSE-listed CEF (DMO) managed by Western Asset focused on mortgage-related securities. Comparable to PGZ in its CMBS/mortgage exposure and listed CEF structure, though narrower in asset mix.
• Lazard Real Estate Fund: Real estate securities fund (LREFX/Lazard listed real estate strategies) managed by Lazard Asset Management. Comparable to PGZ in providing real estate securities exposure to investors, though typically offered as an open-end vehicle.

Broad incumbents

• PIMCO Real Estate Income Strategy: PIMCO's real estate income strategy invests in real estate-related debt and equity securities to deliver high current income. Comparable to PGZ in asset mix (CMBS + REIT) and income objective, but offered through PIMCO's much larger platform.
• BlackRock Income Trust: NYSE-listed diversified closed-end fund (BKT) managed by BlackRock with exposure spanning real estate debt and equity. Comparable to PGZ in CEF structure and partial real estate debt focus, but broader in mandate.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat3 records

Key risks6 records

Key highlights6 records

Customer concentration

• LinkedInlinkedin.com/company/principal-real-estate

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Principal Real Estate Income Fund