In plain terms — Principal Real Estate Income Fund
Shares currently cost about 13.4% less than the value of the assets behind them (a discount).
Over the past year it has averaged a 10.3% discount, so today's level is unusually wide for this fund (Z-score -2.4). That describes the past; it does not predict where the discount goes next.
It pays regular distributions worth about 14.2% a year of the share price (12.3% of the assets). That is a payout rate, not a return: part of it may be capital being handed back.
Because the shares trade below the value of their assets, each dollar of reinvested distributions buys about $1.16 of assets — a ReinvestCapture™ rate of 16.4%, more than the payout rate itself. That is buying power, not a return.
The assets themselves fell 0.2% over the past year including distributions (NAV total return).
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Price and NAV, past year
Snapshot
Valuation vs. history
| Window | Average prem/disc | Std. dev. | Z-score | Observations |
|---|---|---|---|---|
| 3 months | -9.81% | 2.15% | -2.05 | 64 |
| 6 months | -9.87% | 1.90% | -2.29 | 126 |
| 1 year | -10.25% | 1.63% | -2.43 | 250 |
| 3 years | -10.26% | — | — | — |
| 5 years | -11.34% | — | — | — |
Current contemporaneous premium/discount -14.22% (close Oct 14, 2026 vs NAV Oct 13, 2026). 1-year range -14.35% to -6.47%. A negative Z-score means a wider discount than the window average — not that the fund is undervalued.
Performance
| Series | 1M | 3M | YTD | 1Y | 3Y (ann.) | 5Y (ann.) |
|---|---|---|---|---|---|---|
| Market price return | -8.59% | -15.73% | -12.79% | -16.06% | -0.75% | -10.76% |
| Market price total return | -7.55% | -13.01% | -4.24% | -4.94% | +12.30% | +0.08% |
| NAV return | -3.57% | -7.56% | -8.95% | -10.77% | 0.00% | -10.24% |
| NAV total return | -2.60% | -4.85% | -0.93% | -0.19% | +11.77% | -0.61% |
Through Oct 14, 2026. Total return reinvests distributions at the series value on the ex-date. Cumulative ≤ 1 year, annualised beyond.
About the fund
The Principal Real Estate Income Fund (PGZ) operates as a closed-end, balanced mutual fund, managed by ALPS Advisers, Inc., with Principal Real Estate Investors, LLC acting as co-manager. This fund primarily allocates capital to public equity and fixed-income securities within the United States. Its portfolio specifically targets commercial mortgage-backed securities, real estate investment trusts (REITs), and analogous entities, favoring value-oriented companies. To enhance its investment strategies, the fund employs a variety of financial derivatives, including credit default swaps, interest rate swaps, caps, floors, collars, currency futures and forwards, rate forwards, and interest rate futures. Its investment methodology is rooted in fundamental analysis, integrating both top-down macroeconomic perspectives and bottom-up security selection. This analytical framework assesses factors such as the broader economic outlook, the real estate cycle, core real estate fundamentals, and makes tactical allocation adjustments based on ongoing market valuations, quantitative analysis, and technical indicators. The fund was established on August 31, 2012, and is domiciled in the United States.
CEF Explorer research page for Principal Real Estate Income Fund. Figures carry their own dates and sources; a discount to NAV does not guarantee convergence or any return. This is not investment advice.