PIREX | Principal Real Estate Securities Fund

PIREX

Principal Real Estate Securities Fund

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Prospectus

Enhanced fact sheet

Overview

Performance

As of 10/31/2025

YTD

1.84%

1-year

-2.29%

3-year

6.75%

5-year

7.37%

10-year

6.11%

Returns represent past performance and do not guarantee future results. Share price, principal value, and return will vary and you may have a gain or loss when shares are sold. Current performance may be lower or higher than quoted.

Overall Morningstar Rating™

As of 10/31/2025

Morningstar Medalist Rating™

As of 10/13/2025

Category:

Real Estate

Analyst-Driven %:

100

Data Coverage %:

100

Highlights

A real estate strategy that strives to deliver strong, risk-adjusted performance

Track record of consistent and attractive risk-adjusted returns generated through bottom-up stock selection.
“Quality at the right price” investment style favors above average companies trading at average or discounted valuations.
Access to extensive Principal resources and in-house insights from all four quadrants across the real estate spectrum.

Fund details

as of 11/20/2025 unless indicated otherwise

Fund ticker

PIREX

CUSIP

74253Q580

Benchmark

U.S. REIT Linked Index

Extended performance inception date

12/06/2000

NAV

$27.92

Total fund assets

$6.18B

Dividend frequency

Quarterly

Minimum investment

—

Inception date

03/01/2001

Morningstar category

Real Estate

Investment approach

The investment seeks to generate a total return. Under normal circumstances, the fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of companies principally engaged in the real estate industry. It invests in equity securities regardless of market capitalization (small, medium or large). The fund concentrates its investments (invest more than 25% of its net assets) in securities in the real estate industry. It is non-diversified.

Performance & expenses

As of 10/31/2025

As of 09/30/2025

Month end Quarter end

Name	1 month	3 month	YTD	1-year	3-year	5-year	10-year	Since inception	Overall
Name	1 month	3 month	YTD	1-year	3-year	5-year	10-year	Since inception	Overall	Total return	-1.78%	0.81%	1.84%	-2.29%	6.75%	7.37%	6.11%	9.84%	—
Benchmark performance U.S. REIT Linked Index	-2.21%	1.50%	2.21%	-2.61%	7.26%	8.74%	5.46%	—	—
Morningstar category average Real Estate	-2.04%	1.52%	1.44%	-2.50%	6.78%	7.27%	4.97%	—	—
Morningstar percentile rankings	—	—	—	46	50	52	15	—	—
# of funds in category	220	220	217	217	207	192	150	—	207
Morningstar rating Morningstar ratings disclosure Morningstar ratings are based on risk-adjusted returns. The Morningstar Rating™ for funds, or "star rating," is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar risk-adjusted return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Morningstar ratings do not reflect the inclusion of sales charges. If sales charges were reflected, ratings could be lower.	—	—	—	—				—

Returns shown for periods of less than one year are not annualized.

Index performance information: no deductions for fees, expenses or taxes. Indices are unmanaged and individuals cannot invest directly in an index.

Name	1 month	3 month	YTD	1-year	3-year	5-year	10-year	Since inception	Overall
Name	1 month	3 month	YTD	1-year	3-year	5-year	10-year	Since inception	Overall	Total return	-0.03%	0.98%	3.69%	-3.66%	8.24%	7.15%	6.87%	9.96%	—
Benchmark performance U.S. REIT Linked Index	0.43%	2.67%	4.51%	-4.00%	9.79%	8.66%	6.30%	—	—
Morningstar category average Real Estate	0.08%	2.62%	3.20%	-4.08%	8.52%	6.86%	5.67%	—	—

Returns shown for periods of less than one year are not annualized.

Index performance information: no deductions for fees, expenses or taxes. Indices are unmanaged and individuals cannot invest directly in an index.

Data	2024	2023	2022	2021	2020
Total return	5.45%	13.33%	-25.20%	39.64%	-3.23%
Morningstar category average Real Estate	5.90%	12.03%	-25.67%	38.73%	-4.49%

Date	Type	Dollar per share
09/18/2025	Income	0.2192
06/18/2025	Income	0.1720
03/19/2025	Income	0.1715
12/27/2024	Income	0.1626
12/27/2024	Long Term Capital Gain	0.4618
09/19/2024	Income	0.2346
06/20/2024	Income	0.1556
03/19/2024	Income	0.1560
12/27/2023	Income	0.1668
09/20/2023	Income	0.2754
06/20/2023	Income	0.1605
03/17/2023	Income	0.1402
12/28/2022	Income	0.1457
12/28/2022	Long Term Capital Gain	0.2558

Ratings

Morningstar Medalist Rating™

as of 10/13/2025 | 207 funds | Analyst-Driven %: 100 | Data Coverage %: 100

Morningstar ratings

Morningstar ratings disclosure

Overall Morningstar Rating™ as of 10/31/25 among Real Estate Funds. Morningstar ratings are based on risk-adjusted returns.

The Morningstar Rating™ for funds, or "star rating," is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar risk-adjusted return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Morningstar ratings do not reflect the inclusion of sales charges. If sales charges were reflected, ratings could be lower.

as of 10/31/2025

3-year

207 funds

5-year

192 funds

10-year

150 funds

Overall

207 funds

3 year | 207 funds

5 year | 192 funds

10 year | 150 funds

Overall | 207 funds

Holdings

Top 10

as of 10/31/2025

% of Assets

1. Welltower Inc

9.31%

2. American Tower Corp

8.75%

3. Equinix Inc

8.54%

4. Ventas Inc

6.39%

5. Prologis Inc

6.30%

6. Extra Space Storage Inc

4.76%

7. AvalonBay Communities Inc

4.54%

8. Digital Realty Trust Inc

3.49%

9. VICI Properties Inc

3.39%

10. Regency Centers Corp

3.31%

The holdings listed do not constitute a recommendation to purchase or sell a particular security. Cash and/or derivative positions that are not part of the core investment strategy will not be reflected in the top holdings list.

May not reflect current holdings or allocations.

Portfolio characteristics

# of holdings

as of 10/31/2025

Active share

as of 10/31/2025

41.49%

Turnover ratio

as of 04/30/2025

17.50%

Weighted avg mark cap

as of 10/31/2025

48,027.50

Alpha (3-year)

as of 10/31/2025

—

Beta (3-year)

as of 10/31/2025

—

R-squared (3-year)

as of 10/31/2025

—

Sharpe ratio (3-year)

as of 10/31/2025

—

Standard deviation (3-year)

as of 10/31/2025

—

Tracking error (3-year)

as of 10/31/2025

—

May not reflect current holdings or allocations.

Portfolio management

Literature

Investment materials

Portfolio holdings

Disclosures

Principal Funds are distributed by Principal Funds Distributor, Inc. ALPS Distributors, Inc. is the distributor of the Principal ETFs. ALPS Distributors, Inc. and the Principal Funds are not affiliated.

NOT FDIC INSURED - MAY LOSE VALUE - NO BANK GUARANTEE

Morningstar percentile rankings are based on total returns and do not reflect the inclusion of sales charges. If sales charges were reflected, rankings could be lower.

REITs are subject to a real estate industry sensitive to interest rates, general and local economic conditions, property tax rates, and other factors.

Real estate investment options are subject to some risks inherent in real estate and real estate investment trusts (REITs), such as risks associated with general and local economic conditions. Investing in REITs involves special risks, including interest rate fluctuation, credit risks, and liquidity risks, including interest conditions on real estate values and occupancy rates.

Performance assumes reinvestment of all dividends and capital gains.

Principal Global Investors is the Investment Adviser of all funds included in the Principal Funds, Inc. Principal Funds are managed by Principal Global Investors, its boutique affiliates, and by many leading sub-advisors.

To obtain a prospectus, download prospectus online or call Customer Service at 1-800-222-5852 . Carefully consider a fund’s objectives, risks, charges, and expenses. The prospectus, or summary prospectus if available, contains this and other information. Please read it carefully before investing.

© 2025 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

The Morningstar Medalist Rating™ is the summary expression of Morningstar’s forward-looking analysis of investment strategies as offered via specific vehicles using a rating scale of Gold, Silver, Bronze, Neutral, and Negative. The Medalist Ratings indicate which investments Morningstar believes are likely to outperform a relevant index or peer group average on a risk-adjusted basis over time. Investment products are evaluated on three key pillars (People, Parent, and Process) which, when coupled with a fee assessment, forms the basis for Morningstar’s conviction in those products’ investment merits and determines the Medalist Rating they’re assigned. Pillar ratings take the form of Low, Below Average, Average, Above Average, and High. Pillars may be evaluated via an analyst’s qualitative assessment (either directly to a vehicle the analyst covers or indirectly when the pillar ratings of a covered vehicle are mapped to a related uncovered vehicle) or using algorithmic techniques. Vehicles are sorted by their expected performance into rating groups defined by their Morningstar Category and their active or passive status. When analysts directly cover a vehicle, they assign the three pillar ratings based on their qualitative assessment, subject to the oversight of the Analyst Rating Committee, and monitor and reevaluate them at least every 14 months. When the vehicles are covered either indirectly by analysts or by algorithm, the ratings are assigned monthly. For more detailed information about these ratings, including their methodology, please go to https://shareholders.morningstar.com/investor-relations/governance/Compliance--Disclosure/default.aspx .

The Morningstar Medalist Ratings are not statements of fact, nor are they credit or risk ratings. The Morningstar Medalist Rating (i) should not be used as the sole basis in evaluating an investment product, (ii) involves unknown risks and uncertainties which may cause expectations not to occur or to differ significantly from what was expected, (iii) are not guaranteed to be based on complete or accurate assumptions or models when determined algorithmically, (iv) involve the risk that the return target will not be met due to such things as unforeseen changes in management, technology, economic development, interest rate development, operating and/or material costs, competitive pressure, supervisory law, exchange rate, tax rates, exchange rate changes, and/or changes in political and social conditions, and (v) should not be considered an offer or solicitation to buy or sell the investment product. A change in the fundamental factors underlying the Morningstar Medalist Rating can mean that the rating is subsequently no longer accurate.

The Analyst-Driven % data point displays the weighted percentage of a vehicle’s pillar ratings assigned directly or indirectly by analysts.

The Data Coverage % data point is a summary metric describing the level of data completeness used to generate the overall rating.

These calculated returns reflect the historical performance of the oldest share class of the Fund, adjusted to reflect the fees and expenses of the share class shown. Please see the Fund's prospectus for more information on specific expenses and see the Fund's most recent shareholder report for the actual date of first sale. Expenses are deducted from income earned by the Fund. As a result, dividends and investment results will differ for each share class.