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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and Board of Trustees of
Principal Real Estate Income Fund

In planning and performing our audit of the financial statements of Principal Real Estate Income Fund (the “Fund”)
as of and for the year ended October 31, 2017, in accordance with the standards of the Public Company Accounting
Oversight Board (United States), we considered the Fund’s internal control over financial reporting, including
controls over safeguarding securities, as a basis for designing our auditing procedures for the purpose of expressing
our opinion on the financial statements and to comply with the requirements of Form N SAR, but not for the purpose
of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting.  Accordingly, we
express no such opinion.

The management of the Fund is responsible for establishing and maintaining effective internal control over financial
reporting.   In fulfilling this responsibility, estimates and judgments by management are required to assess the
expected benefits and related costs of controls.   A fund’s internal control over financial reporting is a process
designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with generally accepted accounting principles (GAAP).  A
fund’s internal control over financial reporting includes those policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of
the assets of the fund; (2) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with GAAP, and that receipts and expenditures of the fund are
being made only in accordance with authorizations of management and trustees of the fund; and (3) provide
reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of a
fund’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect
misstatements.  Also, projections of any evaluation of effectiveness to future periods are subject to the risk that
controls may become inadequate because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.

A deficiency in internal control over financial reporting exists when the design or operation of a control does not
allow management or employees, in the normal course of performing their assigned functions, to prevent or detect
misstatements on a timely basis.  A material weakness is a deficiency, or combination of deficiencies, in internal
control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Fund’s
annual or interim financial statements will not be prevented or detected on a timely basis.

Our consideration of the Fund’s internal control over financial reporting was for the limited purpose described in the
first paragraph and would not necessarily disclose all deficiencies in internal control that might be material
weaknesses under standards established by the Public Company Accounting Oversight Board (United States).
However, we noted no deficiencies in the Fund’s internal control over financial reporting and its operation, including
controls over safeguarding securities, that we consider to be a material weakness as defined above as of October
31, 2017.

This report is intended solely for the information and use of management and the Board of Trustees of the Fund and
the Securities and Exchange Commission and is not intended to be and should not be used by anyone other than

COHEN & COMPANY, LTD.
Cleveland, Ohio
December 22, 2017

C O H E N & C O M PA N Y, L T D.
800.229.1099 | 866.818.4538 fax | cohencpa.com

Registered with the Public Company Accounting Oversight Board