	Inst Class	Class A-3	Class A-4	Class F
Maximum Initial Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	None (1)	None (1)	3.00% (2)	None (1)
Maximum Early Withdrawal Charge (Load) (as a percentage of the lower of the original purchase price or repurchase price)	None	None	1.00%	1.70%

While neither the Fund nor the Distributor impose an initial sales charge, if you buy

Institutional Class, Class A-3 or Class F Common Shares through certain financial firms,

they may directly charge you transaction or other fees in such amount as they may

determine. Please consult your financial firm for additional information.

Although the Fund is permitted to charge a maximum sales charge of 3.00%, the Fund

has elected to currently charge a maximum sales charge of 2.00%. See “Plan of

Distribution - Purchasing Shares - Reductions and Waivers of Initial Sales Charges and

EWCs” - Class A-4 Common Shares in this prospectus for more information on sales

charge waivers and discounts.

Other Transaction Expenses [Abstract]

Annual Expenses [Table Text Block]

Annual Fund Operating Expenses (

as a percentage

of net assets attributable to Common Shares

(reflecting leverage attributable to Preferred

Shares and reverse repurchase agreements)):

	Inst Class	Class A-3	Class A-4	Class F
Advisory Fees	1.25%	1.25%	1.25%	1.25%
Administrative Fees	0.50%	0.50%	0.50%	0.50%
Distribution and/or Service (12b-1) Fees	N/A	0.75%	0.75%	N/A
Interest Payments on Borrowed Funds (1)(2)	2.80%	2.80%	2.80%	2.80%
Dividend and Other Costs on Preferred Shares (1)(3)	0.03%	0.03%	0.03%	0.03%
Property-Level Expenses (4)	N/A	N/A	N/A	N/A
Other Expenses	0.80%	0.80%	0.80%	0.80%
Total Annual Fund Operating Expenses	5.38%	6.13%	6.13%	5.38%
Fee Waiver and/or Expense Reimbursement (5)	(0.69)%	(0.69)%	(0.69)%	(0.69)%
Total Annual Fund Operating Expenses after Fee Waiver and/or Expense Reimbursement	4.69%	5.44%	5.44%	4.69%

“Interest Payments on Borrowed Funds” and “Dividends and Other Costs on Preferred

Shares” are borne by the Fund separately from the advisory and administrative fees

paid to PIMCO. Excluding such expenses, estimated Total Annual Fund Operating

Expenses After Fee Waiver and/or Expense Reimbursement are 1.86% for Institutional

Class and Class F shares and 2.61% for Class A-3 and Class A-4 shares.

“Interest Payments on Borrowed Funds” reflects the Fund’s use of leverage averaged

over the period ended December 31, 2023 in an amount equal to 43.20% of the

Fund's average net assets (including assets attributable to such leverage) at an interest

rate of 6.26%. The actual amount of leverage used and borrowing expenses borne by

the Fund will vary over time in accordance with the level of the Fund's use of secured

credit facilities from certain financial institutions and/or other forms of borrowings and

variations in market interest rates. Borrowing expense is required to be treated as an

expense of the Fund for accounting purposes. Any associated income or gains (or

losses) realized from leverage obtained through such instruments is not reflected in the

Annual Fund Operating Expenses table above, but would be reflected in the Fund's

performance result.

“Dividend and Other Costs on Preferred Shares” reflects the Fund’s issuance of

Preferred Shares in an amount equal to 0.28% of the Fund's average net assets, at an

estimated annual dividend cost to the Fund of 12.00%. See “Description of Capital

Structure and Shares.” Dividend and Other Costs on Preferred Shares are borne directly

by the Fund and will be reflected in the Fund's financial statements.

“Property-Level Expenses” represents estimated fees and expenses related to property

management, disposition expenses, any other expenses related to investments in real

property by the Fund’s consolidated subsidiaries. In addition, the Fund also expects

that its unconsolidated operating entities will incur property management, disposition

and other expenses related to investments in real property, the costs of which will be

indirectly borne by Common Shareholders. The Fund’s real estate operating

subsidiaries have and expect in the future to hire affiliated or unaffiliated property

managers or other service providers (who could also be joint venture partners for an

investment) at prevailing market rates to perform management and specialized

services for the Fund’s commercial real estate (“CRE”) investments.

PIMCO has contractually agreed (the “Expense Limitation Agreement”), through

May 1, 2026, to waive its supervisory and administrative fee, or reimburse the Fund, to

the extent that organizational expenses (including any initial offering expenses), the

payment of expenses associated with obtaining or maintaining a Legal Entity Identifier

(“LEI”) and/or payment of the Fund’s pro rata Trustees’ fees (the “Specified Expenses”)

in any fiscal year exceed 0.07% of the Fund’s average daily net assets (the “Expense

Limit”). Under the Expense Limitation Agreement, if, in any month during which the

Administration Agreement is in effect, the estimated annualized Specified Expenses of

the Fund for that month are less than the Expense Limit, PIMCO shall be entitled to

reimbursement by the Fund of any Supervisory and Administrative Fees waived or

reduced pursuant to the Expense Limitation Agreement (the “Reimbursement

Amount”) during the previous thirty-six (36) months, to the extent that the Fund’s

annualized Specified Expenses plus the amount so reimbursed does not exceed, for

such month, the Expense Limit (or the expense limit in place at the time the amount

being recouped was originally waived if lower than the Expense Limit) or any future

expense limitation that may be in place, provided that such amount paid to PIMCO will

in no event exceed the total Reimbursement Amount and will not include any amounts

previously reimbursed to PIMCO. The Expense Limitation Agreement shall

automatically renew for one-year terms unless PIMCO provides written notice to the

Fund of the termination of the Expense Limitation Agreement, which notice shall be

received by the Fund at least 30 days prior to the end of the then-current term. In

addition, the Expense Limitation Agreement shall terminate upon termination of the

Administration Agreement, or it may be terminated by the Fund, without payment of

any penalty, upon ninety (90) days’ prior written notice to PIMCO at its principal place

of business.

Other Annual Expenses [Abstract]

Expense Example [Table Text Block]

Example

As required by relevant SEC regulations, the following example

illustrates the expenses (including any applicable sales charge) that you

would pay on a $1,000 investment in the Common Shares, assuming a

5% annual return

(1)

If you redeem your shares at the end of each period:

	1 Year	3 Years	5 Years	10 Years
Institutional Class	$47	$154	$261	$524
Class A-3	$54	$175	$293	$576
Class A-4	$93	$200	$314	$589
Class F	$64	$154	$261	$524

If you do not redeem your shares:

	1 Year	3 Years	5 Years	10 Years
Class A-4	$83	$200	$314	$589
Class F	$47	$154	$261	$524

The example above should not be considered a representation of future

expenses. Actual expenses may be higher or lower than those shown

. The

example assumes that the estimated Interest Payments on Borrowed Funds and Other

Expenses set forth in the Annual Fund Operating Expenses table are accurate, that the

Total Annual Fund Operating Expenses (as described above) remain the same for all

time periods shown and that all dividends and distributions are reinvested at NAV.

Actual expenses may be greater or less than those assumed. Moreover, the Fund’s

actual rate of return may be greater or less than the hypothetical 5% annual return

shown in the example. In addition to the fees and expenses described above, you may

also be required to pay transaction or other fees on purchases of Common Shares of

the Fund,

which

are not reflected in the example.

Purpose of Fee Table , Note [Text Block]

This table is intended to assist investors in understanding the various

costs and expenses directly or indirectly associated with investing in the

Fund. You may qualify for sales charge discounts on Class A-4 Common

Shares of the Fund if you and your family invest, or agree to invest in the

future, in a certain amount of Class A-3 and/or Class A-4 common

shares of the Fund (to the extent available) or other eligible closed-end

interval funds that are sponsored by PIMCO. More information about

these and other discounts is available in the “Plan of Distribution-Share

Classes” section on page 61 of this prospectus or from your financial

advisor.

General Description of Registrant [Abstract]

Investment Objectives and Practices [Text Block]

Investment Objectives and Strategies

Investment Objectives

The Fund’s primary investment objective is to provide current income

with a secondary objective of long- term capital appreciation. There can

be no assurance that the Fund will achieve its investment objectives.

The Fund’s investment objectives are not fundamental and may be

changed by the Board without the approval of the holders of a majority

of the outstanding Common Shares or Preferred Shares. The Fund is not

required to provide prior notice to shareholders of any change to its

investment objectives.

Principal Investment Strategies

The Fund’s investment strategy will be, under normal circumstances,

primarily to acquire stabilized, income-oriented commercial real estate

and debt secured by CRE. Under normal circumstances, the Fund’s

portfolio is expected to be principally comprised of properties, and debt

secured by properties, primarily located in the United States but may

also be diversified on a global basis through investments in properties

and debt secured by properties outside of the United States. To a lesser

extent, and subject to the investment limitations described herein, the

Fund also may invest in real estate-related securities.

The Fund invests, under normal circumstances, at least 80% of its net

assets (plus the amount of its borrowings for investment purposes) in a

portfolio of real estate, including in the form of property investments

and debt interests, equity investments in real estate or real estate

related companies, real estate related loans or other real estate debt

investments and securities of real estate and real estate-related issuers

or real estate related companies. The Fund may also invest in private

real estate investment funds. The Fund’s investments in private real

estate funds will be in private real estate funds that invest primarily in

real estate debt and real estate equity investments of the types in which

the Fund may invest directly. Investments included in the Fund’s 80%

policy will be in an issuer that either invests 50% or more of its assets in

real estate or derives at least 50% of its revenue from real estate, or is

classified as a real estate company or an issuer engaged in the real

estate industry according to an independent classification system, such

as Standard Industrial Classification Codes or Global Industry

Classification Standard, which are each methods for assigning a

company to a specific economic sector and industry group that best

defines its business operations. For purposes of the Fund’s 80% policy,

the Fund values its derivative instruments based on their market value.

The Fund will not invest more than 15% of its assets in private funds

that rely on Section 3(c)(1) or 3(c)(7) of the Investment Company Act.

As a fundamental policy, the Fund will normally invest at least 25% of

its total assets (

i.e.,

concentrate) in real estate investments and

mortgage-related assets issued by government agencies or other

governmental entities or by private originators or issuers, which for

purposes of this investment restriction the Fund treats collectively as an

industry or group of industries (for purposes of this restriction,

investment companies are not considered to be part of any industry).

■

Location

. The Fund intends to invest principally in major markets

in the United States with the ability to selectively invest in other

regions that PIMCO believes offer attractive risk-adjusted returns

consistent with the objectives of the Fund.

■

Property Types

. The Fund may invest across various CRE

property types including, but not limited to residential, industrial,

and office, retail, hospitality, and select niche sectors. The

following is not an exhaustive list of asset classes or strategies

that the Fund may target, and the Fund may not target all (or any

one) of the following asset classes or strategies at any given time:

■

Residential

. Residential properties are generally defined as

having five or more dwelling units that are part of a single

complex and offered for rental use, and also include

single-family residential properties offered for rental use. This

may include apartment, student housing or senior living.

■

Industrial

. Industrial properties are generally categorized as

warehouse/distribution centers, research and development

facilities, flex space or manufacturing.

■

Office

. Office properties include conventional and other office

properties.

■

Retail

. Retail properties consist of shopping and

entertainment properties, such as shopping malls, retail stores,

shopping centers, etc.

■

Hospitality

. Hospitality properties are generally defined as

hotels and lodging properties and can be further divided in

various sub-categories including (but not limited to) limited

service, full service, etc.

■

Select Niche Sectors

. Select niche sectors include

sub-segments of the real estate industry with purpose-built

properties, such as data centers, life sciences, medical office,

self-storage, etc.

The following sections further describe certain asset classes and

strategies that the Fund may target. The following is not an exhaustive

list of asset classes or strategies that the Fund may target, and the Fund

is not obligated to target all (or any one) of the following asset classes

or strategies.

■

Private CRE Equity Investments

: The Fund intends, under

normal circumstances, to invest in stabilized income-oriented

private CRE located in the United States. Stabilized

income-oriented real estate generally means that a property is

well leased to tenants (that is, the property has favorable

occupancy rates) and does not require material capital

improvements. However, the Fund may make investments in CRE

with other characteristics (such as properties that are not well

leased and generally require significant capital improvements,

restructuring and/or repositioning) or other geographies at

PIMCO’s discretion. The Fund may invest in various CRE property

types, including residential, industrial, office, retail, hospitality, and

certain niche sectors. The Fund’s exposure to any of the

aforementioned property types may change based on PIMCO’s

outlook. While PIMCO generally expects to arrange for third-party

property managers or joint venture partners to manage such

investments, the Fund, PIMCO and/or their respective affiliates (as

well as entities owned by or affiliated with any of the foregoing)

may also provide such services.

■

Private CRE Debt Investments

: The Fund’s investments may

include mortgage loans, mezzanine, preferred equity transitional

private debt secured by CRE properties and b-notes (the

secondary tranche in a commercial mortgage-backed security).

Such investments may be of any credit quality (including below

investment grade (commonly referred to as “high yield” securities

or “junk bonds”)), may have any combination of principal and

interest payment structures, may be newly-originated or existing,

may have been originated to specific or general underwriting

standards which vary according to the seller and may be of any

size and any lien position (e.g., first-lien, second-lien or

unsecured). In addition, the Fund may provide financing in respect

of real estate or real estate-related assets or interests (including

to finance construction, development or improvement projects,

mortgage loan pay downs and/or mortgage loans), in each case

directly or through companies acquired (or created) and owned by

or otherwise affiliated with the Fund or PIMCO.

Generally, the day-to-day administration of these investments will be

handled by one or more servicers selected by PIMCO.

■

Publicly Traded CRE Securities

: The Fund’s investments in

publicly traded real estate securities may include CMBS, RMBS,

and other equity or debt securities issued by REITs or real

estate-related investment companies. Publicly traded securities

may be exchange-traded or traded OTC. Real estate-related

investment companies are investment companies that primarily

invest in real estate or activities relating to the ownership,

construction, financing, management, servicing or sale of such

real estate. The Fund may invest in securities of any credit quality,

maturity and duration to enhance its income and capital

appreciation potential and to provide liquidity to the overall

portfolio. This may include below investment grade (commonly

referred to as “high yield” securities or “junk”) securities. The

Fund expects that its investments in publicly traded real estate

securities will primarily be in U.S. securities, but it may also invest

in non-U.S. securities. To the extent that an underlying investment

company in which the Fund invests has adopted a policy to

concentrate its investments in a particular industry, the Fund will,

to the extent applicable, take such underlying investment

company’s concentration policy into consideration for purposes of

the Fund’s own industry concentration policy.

■

Collateralized Bond Obligations, Collateralized Loan

Obligations and other Collateralized Debt Obligations

The Fund may invest in each of CBOs, CLOs, other CDOs and other

similarly structured securities. CBOs, CLOs and CDOs are types of

asset-backed securities. A CBO is a trust which is often backed by

a diversified pool of high risk, below investment grade fixed

income securities. The collateral can be from many different types

of fixed income securities such as high-yield debt, residential

privately-issued mortgage-related securities, commercial

privately-issued mortgage-related securities, trust preferred

securities and emerging market debt. A CLO is a trust typically

collateralized by a pool of loans, which may include, among

others, domestic and foreign senior secured loans, senior

unsecured loans and subordinate commercial real estate loans,

including loans that may be rated below investment grade or

equivalent unrated loans. Other CDOs are trusts backed by other

types of assets representing obligations of various parties. CBOs,

CLOs and other CDOs may charge management fees and

administrative expenses. For CBOs, CLOs and CDOs, the cash

flows from the trust are split into two or more portions, called

tranches, varying in risk and yield. The riskiest portion is the

“equity” tranche which bears the bulk of defaults from the bonds

or loans in the trust and serves to protect the other, more senior

tranches from default in all but the most severe circumstances.

Since they are partially protected from defaults, senior tranches

from a CBO trust, CLO trust or trust of another CDO typically have

higher ratings and lower yields than their underlying securities

and can be rated investment grade. Despite the protection from

the equity tranche, CBO, CLO or other CDO tranches can

experience substantial losses due to actual defaults, increased

sensitivity to defaults due to collateral default and disappearance

of protecting tranches, market anticipation of defaults, as well as

aversion to CBO, CLO or other CDO securities as a class. The Fund

may invest in any tranche, including the equity tranche, of a CBO,

CLO or other CDO. The risks of an investment in a CBO, CLO or

other CDO depend largely on the type of the collateral securities

and the class of the instrument in which the Fund invests.

Normally, CBOs, CLOs and other CDOs are privately offered and

sold, and thus, are not registered under the securities laws. As a

result, investments in CBOs, CLOs and other CDOs may be

characterized by the Fund as illiquid investments, however an

active dealer market may exist for CBOs, CLOs and other CDOs

allowing them to qualify for Rule 144A under the 1933 Act. In

addition to the normal risks associated with debt instruments

discussed elsewhere in this prospectus and in the SAI (e.g.,

prepayment risk, credit risk, liquidity risk, market risk, structural

risk, legal risk and interest rate risk (which may be exacerbated if

the interest rate payable on a structured financing changes based

on multiples of changes in interest rates or inversely to changes in

interest rates) and default risk), CBOs, CLOs and other CDOs may

carry additional risks including, but are not limited to: (i) the

possibility that distributions from collateral securities will not be

adequate to make interest or other payments; (ii) the possibility

that the quality of the collateral may decline in value or default;

(iii) the possibility that investments in CBOs, CLOs and other CDOs

are subordinate to other classes or tranches thereof; and (iv) the

complex structure of the security may not be fully understood at

the time of investment and may produce disputes with the issuer

or unexpected investment results.

■

Derivative Instruments

: The Fund may, but is not required to,

utilize various derivative strategies (both long and short positions)

involving the purchase or sale of futures and forward contracts

(including foreign currency exchange contracts), call and put

options, credit default swaps, total return swaps, basis swaps and

other swap agreements and other derivative instruments for

investment purposes, leveraging purposes or in an attempt to

hedge against market, credit, interest rate, currency and other

risks in the portfolio.

The Fund may invest in cash equivalents and treasuries. The Fund may

invest in securities of other investment companies (including those

advised by PIMCO), including closed-end funds, exchange-traded funds

and other open-end funds. The Fund may invest in certain money market

funds and/or short-term bond funds (“Central Funds”), to the extent

permitted by the 1940 Act, the rules thereunder or exemptive relief

therefrom. The Central Funds are registered investment companies

created for use by certain registered investment companies advised by

PIMCO in connection with their cash management activities.

There is no limit on the maturity or duration of any individual security in

which the Fund may invest.

The Fund may invest in assets involving leases whereby the tenant is

obligated to pay all the expenses of the property, including real estate

taxes, building insurance, and maintenance (“triple net leased”). These

leases can be signed across property sectors, including office and select

retail, to which the Fund plans to gain exposure.

The Fund has received exemptive relief from the SEC that, to the extent

the Fund relies on such relief, permits it to (among other things)

co-invest with certain other persons, including certain affiliates of the

Investment Manager and certain public or private funds managed by the

Investment Manager and its affiliates, subject to certain terms and

conditions. The exemptive relief from the SEC with respect to

co-investments imposes extensive conditions on any co-investments

made in reliance on such relief.

For purposes of the Fund’s investment policies, a Controlled Subsidiary

will comply with provisions of the 1940 Act related to affiliated

transactions and custody (Section 17) or exemptive relief therefrom, and

the Fund will comply with provisions governing investment policies

(Section 8) and capital structure and leverage (Section 18) on an

aggregate basis with the Controlled Subsidiary. In addition, PIMCO and

the Board will comply with the provisions of Section 15 of the 1940 Act

with respect to a Controlled Subsidiary’s investment advisory contract. A

“Controlled Subsidiary” is a subsidiary (which includes an operating

entity, operating company or special purpose entity used by the Fund)

that primarily engages in investment activities in securities or other

assets and in which the Fund owns all or a majority of the voting

securities, i.e., has sole majority voting control. The Fund does not

currently intend to create or acquire primary control of any entity which

primarily engages in investment activities in securities or other assets

other than Controlled Subsidiaries.

Investment Selection Strategies

In selecting investments for a Fund, PIMCO develops an outlook for

interest rates, economic conditions, and commercial real estate market.

The proportion of a Fund’s assets committed to a specific investment

varies based on PIMCO’s outlook for the U.S. economy and the

economies of other countries in the world, the financial markets, and

other factors. In selecting investments for the Fund, PIMCO may use

proprietary quantitative models that are developed and maintained by

PIMCO, and which are subject to change over time without notice in

PIMCO's discretion.

Portfolio Composition

The Fund’s portfolio is expected to be comprised principally of the

following types of investments. A more detailed description of the

Fund’s investment policies and restrictions and more detailed

information about the Fund’s portfolio investments are contained in the

SAI.

Investments in Thematically-Driven Stabilized Real Estate and Single

Tenant Properties

The Fund intends to make equity investments in stabilized,

income-oriented commercial real estate primarily in U.S. markets that

offer the potential to generate current income and, to a lesser extent,

long-term capital appreciation. Stabilized income-oriented real estate

generally means that a property is well leased to tenants (that is, the

property has favorable occupancy rates) and does not require material

capital improvements. The Fund also intends to make equity investments

in commercial real estate leased for long durations (typically at least a

10-year period) to single tenants that the Investment Manager believes

have favorable credit profiles and/or performance attributes supporting

highly visible long-term cash flows.

Property Characteristics

. The Fund may invest in stabilized assets and

portfolios with, in PIMCO’s view at the time of investment, income from

stable, in-place cash flows that require limited near-term capital

expenditures.

Location

. The Fund intends to invest principally in major markets in the

United States with the ability to selectively invest in other regions that

PIMCO believes offer attractive risk-adjusted returns consistent with the

objectives of the Fund.

The Fund expects that its investments in real estate-related securities

will primarily be in U.S. securities, but it may also invest in

non-U.S. securities.

Property Types

. The Fund may invest across various CRE property types

including, but not limited to, residential, industrial, office, retail,

hospitality, and select niche sectors. The Fund’s exposure to any of the

below property types may change based on PIMCO’s outlook. The

following is not an exhaustive list of asset classes or strategies that the

Fund may target, and the Fund may not target all (or any one) of the

following asset classes or strategies at any given time:

Residential Properties

. Residential properties are generally defined as

having five or more dwelling units that are part of a single complex and

offered for rental use, and also include single-family residential

properties offered for rental use. This may include apartment, student

housing or senior living.

Industrial Properties

. Industrial properties are generally categorized as

warehouse/distribution centers, research and development facilities, flex

space or manufacturing.

Office Properties

. Office properties include conventional and other office

properties.

Retail.

Retail properties consist of shopping and entertainment

properties, such as shopping malls, retail stores, shopping centers, etc.

Hospitality

. Hospitality properties are generally defined as hotels and

lodging properties and can be further divided in various sub-categories

including (but not limited to) limited service, full service, etc.

Select Niche Sectors

. Select niche sectors include sub-segments of the

real estate industry with purpose-built properties, such as data centers,

life sciences, medical office, self-storage, etc.

Ownership Structure

. The Fund’s property investments in each primary

strategy are expected to be structured through privately-owned

operating entities or private real estate operating companies which hold

whole or partial interests in real properties. The Fund, directly or

indirectly through its Controlled Subsidiaries expects to enter into joint

ventures with third parties to make investments. The Fund or its

Controlled Subsidiaries may also make investments in partnerships or

other co-ownership arrangements or participations arrangements with

other investors, including affiliates, to acquire properties. The Fund,

directly or indirectly through its Controlled Subsidiaries, expects to

generally acquire fee simple interests for the properties (in which the

Fund has an interest in both the land and the building improvements),

but may consider leased fee and leasehold interests if the Investment

Manager believes the investment is consistent with the Fund’s

investment objectives and strategies.

Investments in Private Real Estate Debt and Preferred Equity

In addition to equity investments in the property types listed above, the

Fund may also invest in privately sourced debt and preferred equity

interests that offer current income secured or backed by real estate. The

Fund intends to originate and selectively acquire mezzanine loans,

preferred equity, and to a lesser extent, senior mortgage loans.

The loans may vary in duration, bear interest at fixed or floating rates

and amortize, if at all, over varying periods, often with a balloon

payment of principal at maturity and in the case of mezzanine and

preferred equity may allow for interest to accrue and be added to the

principal amount rather than paid on a current basis and may include

equity participation rights. The borrower of the Fund’s loan investments

will generally be responsible for servicing obligations. In cases where

the Fund as lender is responsible for servicing a loan, such obligations

will generally consist of collecting, or arranging for the collection of,

interest payments and, when applicable, enforcing the Fund’s rights

under the loan documentation. There are no limits on the amount of

loans the Fund may originate; provided such transactions do not impact

the Fund’s ability to maintain its status as a REIT.

Mezzanine Loans

. Mezzanine loans are a type of subordinate loan in

which the loan is secured by one or more direct or indirect ownership

interests in an entity that directly or indirectly owns real estate.

Mezzanine loans are subordinate to a first mortgage or other senior

debt. Investors in mezzanine loans are generally compensated for the

increased credit risk from a pricing perspective and still benefit from the

right to foreclose on its security, in many instances more efficiently than

the rights of foreclosure for first mortgage loans. Upon a default by the

borrower under a mezzanine loan, the mezzanine lender generally can

take control of the property owning entity on an expedited basis, subject

to the rights of the holders of debt senior in priority on the property.

Rights of holders of mezzanine loans are usually governed by

intercreditor or interlender agreements, which may limit the Fund’s

ability to pursue remedies.

Preferred Equity

. Preferred equity is a type of interest in an entity that

owns real estate or real estate-related investments. Preferred equity

interests are generally senior with respect to the payments of dividends

and other distributions, redemption rights and rights upon liquidation to

such entity’s common equity. Investors in preferred equity are typically

compensated for their increased credit risk from a pricing perspective

with fixed payments but may also participate in capital appreciation.

Upon a default by a general partner of a preferred equity issuer, there

typically is a change of control event and the limited partner assumes

control of the entity. Rights of holders of preferred equity are usually

governed by partnership agreements.

Senior Mortgage Loans

. Senior mortgage loans are generally loans

secured by a first mortgage lien on a commercial property. Senior

mortgage loans generally provide for a higher recovery rate and lower

defaults than other debt positions due to the lender’s favorable control

features which at times may mean control of the entire capital structure.

Subordinate Mortgage Loans

. Subordinate mortgage loans are loans

that have a lower priority to collateral claims. Investors in subordinate

mortgages are generally compensated for the increased risk from a

pricing perspective as compared to first mortgage loans but still benefit

from a direct lien on the related property or a security interest in the

entity that owns the real estate. Investors typically receive principal and

interest payments at the same time as senior debt unless a default

occurs, in which case these payments are made only after any senior

debt is repaid in full. The rights of holders of subordinate mortgages are

usually governed by participation and other agreements.

Investments in Traded Real Estate-Related Securities

The Fund may invest in traded real estate-related securities, which

includes MBS and other equity or debt securities issued by REITs or real

estate-related investment companies.

The Fund expects that its investments in real estate-related securities

will primarily be in U.S. securities, but it may also invest in

non-U.S. securities.

The Fund may invest in the following traded real estate-related

securities:

CMBS

. CMBS are securities backed by obligations (including certificates

of participation in obligations) that are principally secured by

commercial mortgages on real property or interests therein having a

multifamily or commercial use, such as retail, office or industrial

properties, hotels, apartments, nursing homes and senior living facilities.

CMBS are typically issued in multiple tranches whereby the more senior

classes are entitled to priority distributions from the trust’s income to

make specified interest and principal payments on such tranches. Losses

and other shortfalls from expected amounts to be received on the

mortgage pool are borne by the most subordinate classes, which receive

principal payments only after the more senior classes have received all

principal payments to which they are entitled. The credit quality of

CMBS depends on the credit quality of the underlying mortgage loans,

which is a function of factors such as the principal amount of loans

relative to the value of the related properties; the cash flow produced by

the property; the mortgage loan terms, such as principal amortization;

market assessment and geographic location; construction quality of the

property; and the creditworthiness of the borrowers.

Agency RMBS

. Agency RMBS are residential mortgage-backed securities

for which a U.S. government agency such as Government National

Mortgage Association (“Ginnie Mae”), or a federally chartered

corporation such as Federal National Mortgage Association (“Fannie

Mae”) or Federal Home Loan Mortgage Corporation (“Freddie Mac”)

guarantees payments of principal and interest on the securities.

Although the U.S. government guarantees principal and interest

payments on securities issued by the U.S. government and some of its

agencies, such as securities issued by Ginnie Mae, this guarantee does

not apply to losses resulting from declines in the market value of these

securities. Some agency RMBS that the Fund may hold are not

guaranteed or backed by the full faith and credit of the

U.S. government, such as those issued by Fannie Mae and Freddie Mac.

Although the U.S. government in the past has provided financial support

to Fannie Mae and Freddie Mac, there can be no assurance that it will

support these or other government-sponsored enterprises in the future.

Agency RMBS differ from other forms of traditional debt securities,

which normally provide for periodic payments of interest in fixed

amounts with principal payments at maturity or on specified call dates.

Instead, agency RMBS provide for monthly payments, which consist of

both principal and interest. In effect, these payments are a

“pass-through” of scheduled and prepaid principal payments and the

monthly interest made by the individual borrowers on the mortgage

loans, net of any fees paid to the issuers, servicers or guarantors of the

securities. The principal may be prepaid at any time due to prepayments

on the underlying mortgage loans or other assets. These differences can

result in significantly greater price and yield volatility than is the case

with traditional fixed income securities.

The Fund’s allocation of agency RMBS collateralized by fixed-rate

mortgages (“FRMs”), adjustable rate mortgages (“ARMs”), or hybrid

adjustable-rate mortgages (“hybrid ARMs”) will depend on various

factors including, but not limited to, relative value, expected future

prepayment trends, supply and demand, costs of hedging, costs of

financing, expected future interest rate volatility and the overall shape

of the Treasury and interest rate swap yield curves. The Investment

Manager intends to take these factors into account when making

investments on behalf of the Fund. The Fund may also make

investments in debentures that are issued and guaranteed by Freddie

Mac or Fannie Mae or mortgage-backed securities the collateral of

which is guaranteed by Ginnie Mae, Freddie Mac, Fannie Mae or

another federally chartered corporation.

Non-Agency RMBS

. Non-agency RMBS are RMBS that are collateralized

by pools of mortgage loans assembled for sale to investors by

commercial banks, savings and loan associations and specialty finance

companies. Non-agency RMBS are not issued or guaranteed by a

U.S. government agency or federally chartered corporation. Like agency

RMBS, non-agency RMBS represent interests in pools of mortgage loans

secured by residential real property.

The mortgage loan collateral for non-agency RMBS consists of

residential mortgage loans that do not generally conform to

underwriting guidelines issued by a federally chartered corporation,

such as Fannie Mae or Freddie Mac, or an agency of the

U.S. government, such as Ginnie Mae, due to certain factors, including

mortgage balances in excess of agency underwriting guidelines,

borrower characteristics, loan characteristics and level of

documentation, and therefore are not issued or guaranteed by an

agency. The Fund may also invest in credit risk transfer notes that, while

not structured products, face similar risks as structured products

because they are debt securities issued by governmental agencies but

their value depends in part on a pool of mortgage loans.

The non-agency and agency RMBS acquired by the Fund could be

secured by FRMs, ARMs, hybrid ARMs or interest only mortgages. FRMs

have interest rates that are fixed for the term of the loan and do not

adjust. The interest rates on ARMs generally adjust annually (although

some may adjust more frequently) to an increment over a specified

interest rate index. Hybrid ARMs have interest rates that are fixed for a

specified period of time (typically three, five, seven or ten years) and,

thereafter, adjust to an increment over a specified interest rate index.

ARMs and hybrid ARMs generally have periodic and lifetime constraints

on how much the loan interest rate can change on any predetermined

interest rate reset date. Interest only securities are backed by mortgages

where the borrower pays interest only. Relative value analysis, including

consideration of current market conditions, will determine the Fund’s

allocation to FRMs, ARMs, hybrid ARMs and interest only mortgages.

The Fund’s allocation of non-agency RMBS collateralized by FRMs,

ARMs, hybrid ARMs or interest only mortgages will depend on various

factors including, but not limited to, relative value, expected future

prepayment trends, home price appreciation trends, supply and

demand, availability of financing, expected future interest rate volatility

and the overall state of the non-agency RMBS secondary market.

Borrowers of the underlying loans that secure the non-agency RMBS

assets which the Fund may purchase can be divided into prime,

Alternative-A (“Alt-A”) and subprime borrowers based on their credit

rating.

Real Estate Mortgage Investment Conduits (“REMICs”)

. REMICs are

special purpose vehicles used to pool mortgage loans and issue

mortgage-backed securities. They are designed to hold a fixed pool of

mortgages and issue multiple classes of interests, known as tranches, to

investors. REMICs are treated as pass-through entities for tax purposes,

meaning that income is passed directly to investors, thereby avoiding

double taxation. The primary purpose of REMICs is to securitize

mortgage loans, providing liquidity and diversification to investors.

Re-securitized Real Estate Mortgage Investment Conduits

(“Re-REMICs”)

. REMICs involve the re-securitization of existing REMIC

tranches into new securities. This process takes tranches from one or

more REMICs and re-pools them to create new tranches with different

risk and return profiles. The purpose of Re-REMICs is to restructure

existing mortgage-backed securities to better meet investor needs,

manage risk and enhance liquidity. Both REMICs and Re-REMICs play

significant roles in the mortgage-backed securities market, offering

mechanisms for the securitization and re-securitization of mortgage

loans.

Other Fixed Income Instruments

. The Fund may invest in fixed income

instruments, such as investment grade and high-yield corporate debt

securities, or junk bonds, or U.S. government debt securities. The issuer

of a fixed income instrument pays the investor a fixed- or variable-rate

of interest and normally must repay the amount borrowed on or before

maturity. Certain bonds are “perpetual” in that they have no maturity

date. Holders of fixed income bonds as creditors have a prior legal claim

over common and preferred shareholders as to both income and assets

of the issuer for the principal and interest due them and may have a

prior claim over other creditors but are generally subordinate to any

existing lenders in the issuer’s capital structure. Fixed income

instruments may be secured or unsecured. The investment return of

corporate bonds is generated by payments of interest on the security

and changes in the market value of the security. The market value of a

corporate bond, especially a fixed-rate bond, will generally rise and fall

inversely with interest rates. The value of intermediate- and longer-term

corporate bonds normally fluctuates more in response to changes in

interest rates than does the value of shorter-term corporate bonds. The

market value of a corporate bond also may be affected by the credit

rating of the corporation, the corporation’s performance and

perceptions of the corporation in the marketplace. There is a risk that

the issuers of the securities may not be able to meet their obligations on

interest or principal payments at the time called for by an instrument.

Corporate fixed income instruments usually yield more than government

or agency bonds due to the presence of credit risk. The types of

mortgage-backed securities in which the Fund may invest include

interest-only, inverse-interest only, or principal only residential MBS,

commercial MBS, collateralized mortgage obligations (“CMOs”),

securities issued by REMICs, Re-REMICs, pass-through certificates, credit

linked notes, mortgage forwards or “to be announced” transactions,

collateralized loan obligations backed by commercial loans and

mortgage servicing rights securities. The Fund may invest in a Re-REMIC

in order to obtain exposure to mortgages with a specific risk profile that

could not otherwise be obtained through the purchase of existing

REMICs. Pass-through certificates are fixed income securities whereby

certificates are issued representing interests in a pool of mortgages or

mortgage-backed securities. The Fund may invest in various tranches or

classes of MBS.

Publicly Traded REITs

. The Fund may invest in publicly traded REITs.

REITs are investment vehicles that invest primarily in income-producing

real estate or mortgages and other real estate-related loans or interests.

Many public REITs are listed on major stock exchanges, such as the

New York Stock Exchange and NASDAQ. Publicly traded REITs typically

employ leverage, which magnifies the potential for gains and the risk of

loss. They typically pay out all of their taxable income as dividends to

shareholders. In turn, shareholders pay the income taxes on those

dividends.

Ratings of Securities

. The Fund may invest in debt securities that are

rated investment grade, debt securities rated below investment grade,

and unrated debt securities. The Fund is not required to hold any

minimum percentage of its NAV in debt securities rated investment

grade.

Derivatives

The Fund may, but is not required to, utilize various derivative strategies

(both long and short positions) for investment purposes, leveraging

purposes, or in an attempt to hedge against market, credit, interest rate,

currency and other risks in the portfolio. See “Use of Leverage.”

Generally, derivatives and other similar instruments (referred to

collectively as “derivatives”) are financial contracts whose value

depends upon, or is derived from, the value of an underlying asset,

reference rate or index, and may relate to, among others, individual debt

instruments, interest rates, currencies or currency exchange rates,

commodities and related indexes. Examples of derivative instruments

that the Fund may use include, without limitation, futures and forward

contracts (including foreign currency exchange contracts), call and put

options (including options on futures contracts), credit default swaps,

total return swaps, basis swaps and other swap agreements. The Fund’s

use of derivative instruments involves risks different from, or possibly

greater than, the risks associated with investment directly in securities

and other more traditional investments. Please see “Investment Policies

and Techniques-Derivatives” in the SAI for additional information about

these and other derivative instruments that the Fund may use and the

risks associated with such instruments. There is no assurance that these

derivative strategies will be available at any time or that PIMCO will

determine to use them for the Fund or, if used, that the strategies will be

successful. In addition, the Fund may be subject to certain restrictions on

its use of derivative strategies imposed by guidelines of one or more

rating agencies that may issue ratings for any Preferred Shares issued by

the Fund.

The Fund will engage in derivative transactions only to the extent such

transactions are consistent with the requirements of the Code for

maintaining its qualification as a REIT for federal income tax purposes.

See “Certain U.S. Federal Income Tax Considerations.”

Temporary Defensive Strategies

At times, PIMCO may judge that conditions in the markets make

pursuing the Fund’s primary investment strategy inconsistent with the

best interests of its Common Shareholders. The Fund may make

short-term investments when attempting to respond to adverse market,

economic, political, or other conditions, as determined by PIMCO. Upon

PIMCO’s recommendation, the Fund may, for temporary defensive

purposes, or in order to keep the Fund’s cash fully invested until the net

proceeds of this offering of Common Shares can be invested in

accordance with the Fund’s primary investment strategies, the Fund may

deviate from its investment policies and objectives. At such times the

Investment Manager may, temporarily, take temporary defensive

positions primarily designed to reduce fluctuations in the value of the

Fund’s assets. If the Fund takes a temporary position, it may be unable

to achieve its investment objectives. While the Fund would seek to

continue to qualify as a REIT during such a period, there can be no

guarantee it will be able to do so. In implementing these temporary

strategies, the Fund may invest all or a portion of its assets in fixed

income securities; traded real estate-related securities; U.S. government

securities, including bills, notes and bonds differing as to maturity and

rates of interest that are either issued or guaranteed by the Treasury or

by U.S. government agencies or instrumentalities; certificates of deposit

issued against funds deposited in a bank or a savings and loan

association; commercial paper; bankers’ acceptances; bank time

deposits; shares of money market funds; securities issued or guaranteed

by the federal government or any of its agencies, or any state or local

government; repurchase agreements with respect to any of the

foregoing; or any other securities or cash equivalents that the

Investment Manager considers consistent with this strategy.

It is impossible to predict when, or for how long, the Fund will take

temporary defensive positions. There can be no assurance that such

strategies will be successful.

Risk Factors [Table Text Block]

Principal Risks of the Fund

The NAV of the Common Shares will fluctuate with and be affected by,

among other things, various principal risks of the Fund and its

investments which are summarized below. The Fund is subject to the

principal risks noted below, whether through the Fund’s direct

investments, investments by subsidiaries or derivatives positions.

Limited Prior History

The Fund is a non-diversified, closed-end management investment

company with limited history of operations and is designed for

long-term investors and not as a trading vehicle.

Investment and Market Risk

The market price of securities owned by the Fund may go up or down,

sometimes rapidly or unpredictably. Securities may decline in value due

to factors affecting securities or real estate markets generally or

particular industries or companies represented in the securities or real

estate markets. The value of a security may decline due to general

market conditions that are not specifically related to a particular

company, such as real or perceived adverse economic conditions,

changes in the general outlook for corporate earnings, changes in

interest or currency rates, adverse changes to credit markets or adverse

investor sentiment generally. The value of a security may also decline

due to factors that affect a particular industry or industries, such as

labor shortages or increased production costs and competitive

conditions within an industry. Conversely, a change in financial

condition or other event affecting a single issuer may adversely impact

securities markets as a whole. During a general downturn in the

securities markets, multiple asset classes may decline in value

simultaneously even if the performance of those asset classes is not

otherwise historically correlated. Investments may also be negatively

impacted by market disruptions and by attempts by other market

participants to manipulate the prices of particular investments. Equity

securities generally have greater price volatility than fixed income

securities. Credit ratings downgrades may also negatively affect

securities held by the Fund. Even when markets perform well, there is no

assurance that the investments held by the Fund will increase in value

along with the broader market.

In addition, market risk includes the risk that geopolitical and other

events will disrupt the economy on a national or global level. For

instance, war or military conflict, terrorism, social unrest, recessions,

supply chain disruptions, market manipulation, government defaults,

government shutdowns, political changes, diplomatic developments or

the imposition of sanctions and other similar measures, public health

emergencies (such as the spread of infectious diseases, pandemics and

epidemics), natural/environmental disasters, climate-change and climate

related events can all negatively impact the securities markets, which

could cause the Fund to lose value. These events could reduce consumer

demand or economic output, result in market closures, changes in

interest rates, inflation/deflation, travel restrictions or quarantines, and

significantly adversely impact the economy.

As computing technology and data analytics continually advance there

has been an increasing trend towards machine driven and artificially

intelligent trading systems, particularly providing such systems with

increasing levels of autonomy in trading decisions. Regulators of

financial markets have become increasingly focused on the potential

impact of artificial intelligence on investment activities and may issue

regulations that are intended to affect the use of artificial technology in

trading activities. Any such regulations may not have the intended affect

on financial markets. Moreover, advancements in artificial intelligence

and other technologies may suffer from the introduction of errors,

defects or security vulnerabilities which can go undetected. The

potential speed of such trading technology may exacerbate the impact

of any such flaws, particularly where such flaws are exploited by other

artificially intelligent systems and may act to impair or prevent the

intervention of a human control.

The current contentious domestic political environment, as well as

political and diplomatic events within the United States and abroad,

such as presidential elections in the U.S. or abroad or the

U.S. government’s inability at times to agree on a long-term budget and

deficit reduction plan, has in the past resulted, and may in the future

result, in a government shutdown or otherwise adversely affect the

U.S. regulatory landscape, the general market environment and/or

investor sentiment, which could have an adverse impact on the Fund’s

investments and operations. Additional and/or prolonged U.S. federal

government shutdowns may affect investor and consumer confidence

and may adversely impact financial markets and the broader economy,

perhaps suddenly and to a significant degree. Governmental and

quasi-governmental authorities and regulators throughout the world

have previously responded to serious economic disruptions with a

variety of significant fiscal and monetary policy changes. The reversal of

any fiscal and/or monetary policies or the ineffectiveness of these

policies, could increase volatility in securities markets, which could

adversely affect the Fund’s investments. Any market disruptions could

also prevent the Fund from executing advantageous investment

decisions in a timely manner. Funds that have focused their investments

in a region enduring geopolitical market disruption will face higher risks

of loss. Thus, investors should closely monitor current market conditions

to determine whether the Fund meets their individual financial needs

and tolerance for risk.

Recently, there have been inflationary price movements. As such, fixed

income securities markets may experience heightened levels of interest

rate, volatility and liquidity risk. As discussed more under “Interest Rate

Risk,” the Federal Reserve has raised interest rates from historically low

levels. Any additional interest rate increases in the future could cause

the value of any fund, such as the Fund, that invests in fixed income

securities to decrease.

Although interest rates have significantly increased since 2022 through

the date of this prospectus, the prices of real estate-related assets

generally have not decreased as much as may be expected based on

historical correlations between interest rates and prices of real

estate-related assets. This presents an increased risk of a correction or

severe downturn in real estate-related asset prices, which could

adversely impact the value of other investments as well (such as loans,

securitized debt and other fixed income securities). This risk is

particularly present with respect to commercial real estate-related asset

prices, and the value of other investments with a connection to the

commercial real estate sector. As examples of the current risks faced by

real estate-related assets: tenant vacancy rates, tenant turnover and

tenant concentration have increased; owners of real estate have faced

headwinds, delinquencies and difficulties in collecting rents and other

payments (which increases the risk of owners being unable to pay or

otherwise defaulting on their own borrowings and obligations);

property values have declined; inflation, upkeep costs and other

expenses have increased; and rents have declined for many properties.

Exchanges and securities markets may close early, close late or issue

trading halts on specific securities, which may result in, among other

things, the Fund being unable to buy or sell certain securities or financial

instruments at an advantageous time or accurately price its portfolio

investments.

Distribution Rate Risk

The Fund's distribution rates may be affected by numerous factors,

including but not limited to changes in realized and projected market

returns, fluctuations in market interest rates, Fund performance and

other factors. The Fund’s distributions may be comprised of a return of

capital. In general terms, a return of capital would occur where a Fund

distribution (or portion thereof) represents a return of a portion of your

investment, rather than net income or capital gains generated from your

investment during a particular period. There can be no assurance that a

change in market conditions or other factors will not result in a change

in the Fund’s distribution rate or that the rate will be sustainable in the

future. See “Distributions” for a description of return of capital and its

impacts. There can be no assurance that a change in market conditions

or other factors will not result in a change in a Fund’s distribution rate

or that the rate will be sustainable in the future. For instance, during

periods of low or declining interest rates, the Fund’s distributable

income and dividend levels may decline for many reasons. For example,

the Fund may have to deploy uninvested assets (whether from sales of

Fund shares, proceeds from matured, traded or called debt obligations

or other sources) in new, lower yielding instruments. Additionally,

payments from certain instruments that may be held by the Fund (such

as variable and floating rate securities) may be negatively impacted by

declining interest rates, which may also lead to a decline in the Fund’s

distributable income and dividend levels.

Liquidity Risk

To the extent consistent with the applicable liquidity requirements for

interval funds under Rule 23c-3 under the 1940 Act, the Fund may

invest without limit in illiquid investments. Liquidity risk exists when

particular investments are difficult to purchase or sell at the time that

the Fund would like or at the price that the Fund believes such

investments are currently worth. Many of the Fund’s investments may

be illiquid. The term “illiquid investments” for this purpose means any

investment that the Fund reasonably expects cannot be sold or disposed

of in current market conditions in seven calendar days or less without

the sale or disposition significantly changing the market value of the

investment. Illiquid investments may become harder to value, especially

in changing markets. The Fund’s investments in illiquid investments may

reduce the returns of the Fund because it may be unable to sell the

illiquid investments at an advantageous time or price or possibly require

the Fund to dispose of other investments at unfavorable times or prices

in order to satisfy its obligations, which could prevent the Fund from

taking advantage of other investment opportunities. Illiquidity can be

caused by, among other things, a drop in overall market trading volume,

an inability to find a willing buyer, or legal restrictions on the securities’

resale. Additionally, the market for certain investments may become

illiquid under adverse market or economic conditions independent of

any specific adverse changes in the conditions of a particular issuer.

Bond markets have consistently grown over the past three decades

while the capacity for traditional dealer counterparties to engage in

fixed income trading has not kept pace and in some cases has

decreased. As a result, dealer inventories of corporate bonds, which

provide a core indication of the ability of financial intermediaries to

“make markets,” are at or near historic lows in relation to market size.

Because market makers seek to provide stability to a market through

their intermediary services, the significant reduction in dealer inventories

could potentially lead to decreased liquidity and increased volatility in

the fixed income markets. Such issues may be exacerbated during

periods of economic uncertainty. In such cases, the Fund, due to

regulatory limitations on investments in illiquid investments and the

difficulty in purchasing and selling such securities or instruments, may

be unable to achieve its desired level of exposure to a certain sector. To

the extent that the Fund’s principal investment strategies involve

securities of companies with smaller market capitalizations, foreign

(non-U.S.) securities, Rule 144A securities, senior loans, illiquid sectors

of fixed income securities, derivatives or securities with substantial

market and/or credit risk, the Fund will tend to have the greatest

exposure to liquidity risk. Further, fixed income securities with longer

durations until maturity face heightened levels of liquidity risk as

compared to fixed income securities with shorter durations until

maturity. The risks associated with illiquid instruments may be

particularly acute in situations in which the Fund’s operations require

cash (such as in connection with repurchase offers) and could result in

the Fund borrowing to meet its short-term needs or incurring losses on

the sale of illiquid instruments. It may also be the case that other market

participants may be attempting to liquidate fixed income holdings at the

same time as the Fund, causing increased supply in the market and

contributing to liquidity risk and downward pricing pressure. Liquidity

risk also refers to the risk that the Fund may be required to hold

additional cash or sell other investments in order to obtain cash to close

out derivatives or meet the liquidity demands that derivatives can create

to make payments of margin, collateral, or settlement payments to

counterparties. The Fund may have to sell a security at a

disadvantageous time or price to meet such obligations. The current

direction of governments and regulators may have the effect of reducing

market liquidity, market resiliency and money supply, such as through

higher rates, tighter financial regulations and proposals related to

open-end fund liquidity that may prevent mutual funds and

exchange-traded funds from participating in certain markets.

Management Risk

The Fund is subject to management risk because it is an actively

managed investment portfolio. PIMCO will apply investment techniques

and risk analysis in making investment decisions for the Fund. There can

be no guarantee that these decisions will produce the desired results or

that the due diligence conducted by PIMCO and individual portfolio

managers will expose all material risks associated with an investment.

Additionally, PIMCO and individual portfolio managers may not be able

to identify suitable investment opportunities and may face competition

from other investment managers when identifying and consummating

certain investments, or may determine that certain factors are more

significant than others. Certain securities or other instruments in which

the Fund seeks to invest may not be available in the quantities desired,

including in circumstances where other funds for which PIMCO acts as

investment adviser are seeking to invest in the same or similar securities

or instruments. In addition, regulatory restrictions, actual or potential

conflicts of interest or other considerations may cause PIMCO to restrict

or prohibit participation in certain investments. In such circumstances,

PIMCO may determine to purchase other securities or instruments as

substitutes. Such substitute securities or instruments may not perform as

intended, which could result in losses to the Fund. To the extent the

Fund employs strategies targeting perceived pricing inefficiencies,

arbitrage strategies or similar strategies, it is subject to the risk that the

pricing or valuation of the securities and instruments involved in such

strategies may change unexpectedly, which may result in reduced

returns or losses to the Fund. The Fund is also subject to the risk that

deficiencies in the internal systems or controls of PIMCO or another

service provider will cause losses for the Fund or hinder Fund

operations. For example, trading delays or errors (both human and

systemic) could prevent the Fund from purchasing a security expected to

appreciate in value. Please refer to “Portfolio Managers – Conflicts of

Interest” in the SAI for further information. Additionally, legislative,

regulatory, or tax restrictions, policies or developments may affect the

investment techniques available to PIMCO in connection with managing

the Fund, may cause PIMCO to restrict or prohibit participation in

certain investments and may also adversely affect the ability of the Fund

to achieve its investment objectives. There also can be no assurance that

all of the personnel of PIMCO will continue to be associated with

PIMCO for any length of time. The loss of the services of one or more key

employees of PIMCO could have an adverse impact on the Fund’s ability

to realize its investment objectives.

In addition, the Fund may rely on various third-party sources to calculate

its NAV. As a result, the Fund is subject to certain operational risks

associated with reliance on service providers and service providers’ data

sources. In particular, errors or systems failures and other technological

issues may adversely impact the Fund’s calculations of its NAV, and such

NAV calculation issues may result in inaccurately calculated NAVs,

delays in NAV calculation and/or the inability to calculate NAVs over

extended periods. The Fund may be unable to recover any losses

associated with such failures.

Delay in Use of Proceeds Risk

Although the Fund currently intends to invest the proceeds from any

sale of the Common Shares offered hereby as soon as practicable, such

investments may be delayed if suitable investments are unavailable at

the time. Pending investment, the net proceeds of the offering may be

invested in permitted temporary investments, which include short-term

U.S. government securities, bank certificates of deposit and other

short-term liquid investments. The rate of return on these investments,

which affects the amount of cash available to make distributions, may

be less than the return obtainable from the type of investments in the

real estate industry the Fund seeks to originate or acquire. Such

investments may also make it more difficult for the Fund to qualify as a

REIT. Therefore, delays the Fund encounters in the selection, due

diligence and origination or acquisition of investments would likely limit

its ability to pay distributions and lower overall returns. In the event the

Fund is unable to find suitable investments such temporary investments

may be maintained for longer periods which would be dilutive to overall

investment returns. This could cause a substantial delay in the time it

takes for a shareholder’s investment to realize its full potential return.

Best Efforts Offering

This offering is being made on a “best efforts” basis, meaning the

Distributor and broker-dealers participating in the offering are only

required to use their best efforts to sell the Fund’s shares and have no

firm commitment or obligation to sell any of the shares. In the event of

the liquidation, dissolution or winding up of the Fund, Common

Shareholders are entitled to receive the then-current NAV per share of

the assets legally available for distribution to the Fund’s Common

Shareholders, after payment of or adequate provision for all of the

Fund’s known debts and liabilities, including any outstanding debt

securities or other borrowings and any interest thereon. These rights are

subject to the preferential rights of outstanding shares of any other

class or series of the Fund’s shares, including any Preferred Shares.

Competition Risk

Identifying, completing and realizing attractive portfolio investments is

competitive and involves a high degree of uncertainty. The Fund’s

profitability depends, in large part, on its ability to acquire target assets

at attractive prices. In acquiring its target assets, the Fund will compete

with a variety of institutional investors, including specialty finance

companies, public and private funds (including other funds managed by

PIMCO), REITs, commercial and investment banks, commercial finance

and insurance companies and other financial institutions. Also, as a

result of this competition, desirable investments in the Fund’s target

assets may be limited in the future and the Fund may not be able to

take advantage of attractive investment opportunities from time to time,

as the Fund can provide no assurance that it will be able to identify and

make investments that are consistent with its investment objectives. The

Fund cannot assure you that the competitive pressures it faces will not

have a material adverse effect on its business, financial condition and

results of operations or the Fund’s ability to locate, consummate and

exit investments that satisfy its investment objectives.

Non-Diversification Risk

The Fund is “non-diversified,” which means that the Fund may invest a

greater percentage of its assets in the securities of a smaller number of

issuers than a diversified fund. A fund that invests in a relatively smaller

number of issuers is more susceptible to risks associated with a single

economic, political or regulatory occurrence than a diversified fund

might be. Similarly, the Fund may be subject to increased economic,

business or political risk to the extent that it invests a substantial

portion of its assets in a particular currency, in a group of related

industries, in a particular issuer, in the bonds of similar projects or in a

narrowly defined geographic area outside the U.S. Notwithstanding the

Fund’s status as a “non-diversified” investment company under the

1940 Act, the Fund intends to qualify as a REIT accorded special tax

treatment under the Code, which imposes its own diversification

requirements.

Illiquid Investment Risk

Many of the Fund’s investments will be illiquid, including the Fund’s

private commercial real estate investments. A variety of factors could

make it difficult for the Fund to dispose of any of its illiquid assets on

acceptable terms even if a disposition is in the best interests of the

Fund’s Common Shareholders. The Fund cannot predict whether it will

be able to sell any asset for the price or on the terms set by it or

whether any price or other terms offered by a prospective purchaser

would be acceptable to the Fund. The Fund also cannot predict the

length of time needed to find a willing purchaser and to close the sale

of an asset. The Fund may be required to expend cash to correct defects

or to make improvements before an asset can be sold, and there can be

no assurance that it will have cash available to correct those defects or

to make those improvements. As a result, the Fund’s ability to sell

investments in response to changes in economic and other conditions

could be limited. Limitations on the Fund’s ability to respond to adverse

changes in the performance of its investments may have a material

adverse effect on the Fund’s business, financial condition and results of

operations and the Fund’s ability to make distributions.

Real Estate Investment Risk

The Fund’s investments will be subject to the risks inherent in the

ownership and operation of real estate and real estate-related

businesses and assets. These risks include, but are not limited to:

■

the burdens of ownership of real property;

■

general and local economic conditions (such as an oversupply of

space or a reduction in demand for space);

■

the supply and demand for properties (including competition

based on rental rates);

■

energy and supply shortages;

■

fluctuations in average occupancy and room rates;

■

the attractiveness, type and location of the properties and

changes in the relative popularity of commercial properties as an

investment;

■

the financial condition and resources of tenants, buyers and

sellers of properties;

■

increased mortgage defaults;

■

the quality of maintenance, insurance and management services;

■

changes in the availability of debt financing which may render the

sale or refinancing of properties difficult or impracticable;

■

changes in building, environmental and other laws and/or

regulations (including those governing usage and improvements),

fiscal policies and zoning laws;

■

changes in real property tax rates;

■

changes in interest rates and the availability of mortgage funds

which may render the sale or refinancing of properties difficult or

impracticable;

■

changes in operating costs and expenses;

■

uninsured losses or delays from casualties or condemnation;

■

negative developments in the economy that depress travel or

leasing activity;

■

environmental liabilities;

■

contingent liabilities on disposition of assets;

■

uninsured or uninsurable casualties;

■

acts of God, including earthquakes, hurricanes and other natural

disasters;

■

social unrest and civil disturbances, epidemics, pandemics or other

public crises;

■

terrorist attacks and war;

■

risks and operating problems arising out of the presence of

certain construction materials, structural or property-level latent

defects, work stoppages, labor shortages, strikes, union relations

and contracts, fluctuating prices and supply of labor and/or other

labor-related factor; and

■

other factors which are beyond the control of the Investment

Manager and its affiliates.

In addition, the Fund’s investments will be subject to various risks which

could cause fluctuations in occupancy, rental rates, operating income

and expenses or which could render the sale or financing of its

properties difficult or unattractive. For example, following the

termination or expiration of a tenant’s lease, there may be a period of

time before the Fund will begin receiving rental payments under a

replacement lease. During that period, the Fund will continue to bear

fixed expenses such as interest, real estate taxes, maintenance and

other operating expenses. In addition, declining economic conditions

may impair the Fund’s ability to attract replacement tenants and achieve

rental rates equal to or greater than the rents paid under previous

leases. Increased competition for tenants may require the Fund to make

capital improvements to properties which would not have otherwise

been planned. Ultimately, to the extent that the Fund is unable to renew

leases or re-let space as leases expire, decreased cash flow from tenants

will result, which could adversely impact the Fund’s operating results.

Furthermore, events involving limited liquidity, defaults,

non-performance or other adverse developments that affect financial

institutions or the financial services industry generally, or concerns or

rumors about any events of these kinds or other similar risks, have in the

past and may in the future lead to market-wide liquidity problems.

Market Disruptions Risk

The Fund is subject to investment and operational risks associated with

financial, economic and other global market developments and

disruptions, including those arising from war, military conflicts, terrorism,

social unrest, recessions, supply chain disruptions, market manipulation,

government interventions, defaults and shutdowns, political changes or

diplomatic developments, public health emergencies (such as the spread

of infectious diseases, pandemics and epidemics), bank failures and

natural/environmental disasters, which can all negatively impact the

securities markets, interest rates, auctions, secondary trading, ratings,

credit risk, inflation, deflation and other factors relating to the Fund’s

investments or the Investment Manager’s operations and the value of

an investment in the Fund, its distributions and its returns. These events

can also impair the technology and other operational systems upon

which the Fund’s service providers, including PIMCO as the Fund’s

investment adviser, rely, and could otherwise disrupt the Fund’s service

providers’ ability to fulfill their obligations to the Fund. Furthermore,

events involving limited liquidity, defaults, non-performance or other

adverse developments that affect financial institutions or the financial

services industry generally, or concerns or rumors about any events of

these kinds or other similar risks, have in the past and may in the future

lead to market-wide liquidity problems.

Commercial Real Estate Industry Risk

The Fund’s business and operations are dependent on the commercial

real estate industry generally, which in turn is dependent upon broad

economic conditions. Challenging economic and financial market

conditions may cause the Fund to experience an increase in the number

of private commercial real estate investments that result in losses,

including delinquencies, non-performing assets and a decrease in the

value of the property or, in the case of real estate debt and traded real

estate-related securities, collateral which secures its investments, all of

which could adversely affect the Fund’s results of operations. The Fund

may need to establish significant provisions for losses or impairment,

and be forced to sell assets at undesirable prices, which may result in

the Fund’s NAV declining and the Fund incurring substantial losses.

Additionally, economic conditions can negatively impact the businesses

of tenants of the Fund’s private commercial real estate investments,

which in turn could cause the Fund to experience increased

delinquencies or decreasing rents, either of which would negatively

impact the Fund’s income. These conditions may increase the volatility of

the value of private commercial real estate investments made by the

Fund. These developments also may make it more difficult for the Fund

to accurately value its investments or to sell its investments on a timely

basis. These developments, including elevated interest rates relative to

previous years, or a gradual decline in interest rates from these elevated

levels, could adversely affect the ability of the Fund to use leverage for

investment purposes and increase the cost of such leverage, which

would reduce returns. Such developments could, in turn, diminish

significantly the Fund’s revenue from investments and adversely affect

the Fund’s NAV.

Private Commercial Real Estate Risk

Lease defaults, terminations by one or more tenants or landlord-tenant

disputes may reduce the Fund’s revenues and net income. Any of these

situations may result in extended periods during which there is a

significant decline in revenues or no revenues generated by a property.

If this occurred, it could adversely affect the Fund’s performance.

The Fund’s financial position and its ability to make distributions may

also be adversely affected by financial difficulties experienced by any

major tenants, including bankruptcy, insolvency or a general downturn

in the business, or in the event any major tenants do not renew or

extend their relationship as their lease terms expire. A tenant in

bankruptcy may be able to restrict the ability to collect unpaid rents or

interest during the bankruptcy proceeding. Furthermore, dealing with a

tenants’ bankruptcy or other default may divert management’s

attention and cause the Fund to incur substantial legal and other costs.

The Fund’s investments in real estate will be pressured in challenging

economic and rental market conditions. If the Fund is unable to re-let or

renew leases for all or substantially all of the space at these properties,

if the rental rates upon such renewal or re-letting are significantly lower

than expected, or if the Fund’s reserves for these purposes prove

inadequate, the Fund will experience a reduction in net income and may

be required to reduce or eliminate cash distributions.

The Fund may obtain only limited warranties when it purchases an

equity investment in private commercial real estate. The purchase of

properties with limited warranties increases the risk that the Fund may

lose some or all of its invested capital in the property, as well as the loss

of rental income from that property if an issue should arise that

decreases the value of that property and is not covered by the limited

warranties. If any of these results occur, it may have a material adverse

effect on the Fund’s business, financial condition and results of

operations and the Fund’s ability to make distributions.

Single Tenant Risk

The Fund depends on its tenants for revenue, and therefore the Fund’s

revenue is dependent on the success and economic viability of its

tenants. Certain of the Fund’s investments in single tenant properties

may be leased out to single tenants that the Investment Manager

believes have favorable credit profiles and/or performance attributes

supporting highly visible long-term cash flows. Adverse impacts to such

tenants, including as a result of changes in market or economic

conditions, natural disasters, outbreaks of an infectious disease,

pandemic or any other serious public health concern, political events or

other factors that may impact the operation of these properties, may

have negative effects on the Fund’s business and financial results. As a

result, such tenants may in the future be required to suspend operations

at the Fund’s properties for what could be an extended period of time.

Further, if such tenants default under their leases, the Fund may not be

able to promptly enter into a new lease or operating arrangement for

such properties, rental rates or other terms under any new leases or

operating arrangement may be less favorable than the terms of the

current lease or operating arrangement or the Fund may be required to

make capital improvements to such properties for a new tenant, any of

which could adversely impact the Fund’s operating results.

Litigation Risk

In the ordinary course of its business, the Fund may be subject to

litigation from time to time. The outcome of such proceedings may

materially adversely affect the value of the Fund or its investments and

may continue without resolution for long periods of time. Any litigation

may consume substantial amounts of the Investment Manager’s time

and attention, and that time and the devotion of these resources to

litigation may, at times, be disproportionate to the amounts at stake in

the litigation.

The acquisition, ownership and disposition of real properties carries

certain specific litigation risks. Litigation may be commenced with

respect to a property acquired by the Fund or its subsidiaries in relation

to activities that took place prior to the Fund’s acquisition of such

property. In addition, at the time of disposition of an individual property,

a potential buyer may claim that it should have been afforded the

opportunity to purchase the asset or alternatively that such potential

buyer should be awarded due diligence expenses incurred or statutory

damages for misrepresentation relating to disclosure made, if such

buyer is passed over in favor of another as part of the Fund’s efforts to

maximize sale proceeds. Similarly, successful buyers may later sue the

Fund under various damage theories, including those sounding in tort,

for losses associated with latent defects or other problems not

uncovered in due diligence.

Insurance Risk

Certain types of losses, generally of a catastrophic nature, such as

earthquakes, floods and hurricanes may be uninsurable or not

economically insurable. The Fund may not obtain, or be able to require

tenants to obtain certain types of insurance if it is deemed commercially

unreasonable. Under such circumstances, the insurance proceeds, if any,

might not be adequate to restore the economic value of the property,

which might decrease the value of the property. As a result, the insured

company could lose its investments in, and anticipated profits and cash

flows from, a number of properties and, as a result, adversely affect the

Fund’s investment performance.

Environmental Risk

The Fund may be exposed to substantial risk of loss arising from

investments involving undisclosed or unknown environmental, health or

occupational safety matters, or inadequate reserves, insurance or

insurance proceeds for such matters that have been previously

identified. Under various U.S. federal, state and local and non-U.S. laws,

ordinances and regulations, an owner of real property may be liable for

the costs of removal or remediation of certain hazardous or toxic

substances on or in such property. Such laws may also impose joint and

several liability, which can result in a party being obligated to pay for

greater than its share, or even all, of the liability involved. Such liability

may also be imposed without regard to whether the owner knew of, or

was responsible for, the presence of such hazardous or toxic substances

and may be imposed on the owner in connection with the activities of a

tenant at the property. The cost of any required remediation and the

owner’s liability therefore as to any property are generally not limited

under such laws and could exceed the value of the property and/or the

aggregate assets of the owner. The presence of such substances, or the

failure to properly remediate contamination from such substances,

would adversely affect the owner’s ability to sell the real estate or to

borrow funds using such property as collateral, which could have an

adverse effect on the Fund’s return from such investment.

Environmental claims with respect to a specific investment could exceed

the value of such investment, and under certain circumstances, subject

the other assets of the Fund to such liabilities. In addition, some

environmental laws create a lien on contaminated property in favor of

governments or government agencies for costs they incur in connection

with the contamination.

The ongoing presence of environmental contamination, pollutants or

other hazardous materials on a property (whether known at the time of

acquisition or not) could also result in personal injury (and associated

liability) to persons on the property and persons removing such

materials, future or continuing property damage (which would adversely

affect property value) or claims by third parties, including as a result of

exposure to such materials through the spread of contaminants.

In addition, the Fund’s operating costs and performance may be

adversely affected by compliance obligations under environmental

protection statutes, rules and regulations relating to investments of the

Fund, including additional compliance obligations arising from any

change to such statutes, rules and regulations. Statutes, rules and

regulations may also restrict development of, and use of, property.

Certain clean-up actions brought by governmental agencies and private

parties could also impose obligations in relation to the Fund’s

investments and result in additional costs to the Fund. If the Fund is

deemed liable for any such environmental liabilities and is unable to

seek recovery against its tenant, the Fund’s business, financial condition

and results of operations could be materially and adversely affected,

and the amount available to make distributions could be reduced.

Further, even in cases where the Fund is indemnified by the seller with

respect to an investment against liabilities arising out of violations of

environmental laws and regulations, there can be no assurance as to

the financial viability of the seller to satisfy such indemnities or the

ability of the Fund to achieve enforcement of such indemnities.

Joint Venture Risk

The Fund expects to enter into joint ventures with third parties to make

investments. Joint ventures entered into by the Fund would only include

arrangements in which the Fund does not primarily control the joint

venture. The Fund’s partial interest investments will generally be

structured as joint ventures or co-investment arrangements with third

parties. In these joint ventures, the Fund would generally share control

with the third-party partner (for example the Fund may have approval

rights over some of the joint venture’s activities, and in limited

circumstances that do not amount to primary control of the joint

venture, may have the ability to require that the joint venture take

specific actions), even though the Fund may hold a majority of the

economic interests of a joint venture. In many cases the third-party

partner may provide services for the joint venture or its assets, including,

without limitation, management of day-to-day operations, asset

management, property management, construction or development

management, leasing, refinancing or disposition related services. The

Fund may also make investments in partnerships or other co-ownership

arrangements or participations. Such investments may involve risks not

otherwise present with other methods of investment, including, for

instance, the following risks and conflicts of interest:

■

the joint venture partner in an investment could become insolvent

or bankrupt;

■

fraud or other misconduct by the joint venture partner;

■

the Fund may share decision-making authority with its joint

venture partner regarding certain major decisions affecting the

ownership of the joint venture and the joint venture property,

such as the sale of the property or the making of additional

capital contributions for the benefit of the property, which may

prevent the Fund from taking actions that are opposed by its joint

venture partner;

■

under certain joint venture arrangements, neither party may have

the power to control the venture and, under certain

circumstances, an impasse could result regarding cash

distributions, reserves, or a proposed sale or refinancing of the

investment, and this impasse could have an adverse impact on

the joint venture, which could adversely impact the operations

and profitability of the joint venture and/or the amount and

timing of distributions the Fund receives from such joint venture;

■

the joint venture partner may at any time have economic or

business interests or goals that are or that become in conflict with

the Fund’s business interests or goals, including, for instance, the

operation of the properties;

■

the joint venture partner may be structured differently than the

Fund for tax purposes and this could create conflicts of interest

and risk to the Fund’s ability to qualify as a REIT;

■

the Fund may rely upon its joint venture partner to manage the

day-to-day operations of the joint venture and underlying assets,

as well as to prepare financial information for the joint venture

and any failure to perform these obligations may have a negative

impact on the Fund’s performance and results of operations;

■

the joint venture partner may experience a change of control,

which could result in new management of the joint venture

partner with less experience or conflicting interests to the Fund

and be disruptive to the Fund’s business;

■

such joint venture partner may be in a position to take action

contrary to the Fund’s instructions or requests or contrary to the

Fund’s policies or objectives, including the Fund’s policy with

respect to maintaining its qualification as a REIT;

■

the terms of the joint ventures could restrict the Fund’s ability to

sell or transfer its interest to a third party when it desires on

advantageous terms, which could result in reduced liquidity;

■

the Fund or its joint venture partner may have the right to trigger

a buy-sell arrangement, which could cause the Fund to sell its

interest, or acquire its partner’s interest, at a time when the Fund

otherwise would not have initiated such a transaction;

■

the joint venture partner may not have sufficient personnel or

appropriate levels of expertise to adequately support the Fund’s

initiatives; and

■

to the extent it is permissible under the Investment Company Act

for the Fund to partner with other vehicles advised by the

Investment Manager, the Investment Manager may have conflicts

of interest that may not be resolved in the Fund’s favor.

In addition, disputes between the Fund and its joint venture partner may

result in litigation or arbitration that would increase the Fund’s

expenses and prevent the Fund’s officers and trustees from focusing

their time and efforts on the Fund’s business. Any of the above might

subject the Fund to liabilities and thus reduce its returns on the

investment with the joint venture partner. The Fund may at times enter

into arrangements that provide for unfunded commitments and, even

when not contractually obligated to do so, may be incentivized to fund

future commitments related to its investments.

Recourse Financings Risk

In certain cases, financings for the Fund’s commercial real estate

properties may be recourse to the Fund. Generally, commercial real

estate financings are structured as non-recourse to the borrower, which

limits a lender’s recourse to the property pledged as collateral for the

loan, and not the other assets of the borrower or to any parent of

borrower, in the event of a loan default. However, lenders customarily

will require that a creditworthy parent entity enter into so-called

“recourse carveout” guarantees to protect the lender against certain

bad-faith or other intentional acts of the borrower in violation of the

loan documents. A “bad boy” guarantee typically provides that the

lender can recover losses from the guarantors for certain bad acts, such

as fraud or intentional misrepresentation, intentional waste, willful

misconduct, criminal acts, misappropriation of funds, voluntary

incurrence of prohibited debt and environmental losses sustained by

lender. In addition, “bad boy” guarantees typically provide that the loan

will be a full personal recourse obligation of the guarantor, for certain

actions, such as prohibited transfers of the collateral or changes of

control and voluntary bankruptcy of the borrower. These financing

arrangements with respect to the Fund’s investments generally require

“bad boy” guarantees from the Fund and/or certain of the Fund’s

subsidiaries and in the event that such a guarantee is called, the Fund’s

assets could be adversely affected. Moreover, the Fund’s “bad boy”

guarantees could apply to actions of the joint venture partners

associated with the Fund’s investments. While the Investment Manager

expects to negotiate indemnities from such joint venture partners to

protect against such risks, there remains the possibility that the acts of

such joint venture partner could result in liability to the Fund under such

guarantees. PIMCO may provide “bad boy” guarantees on behalf of

other funds, investment vehicles and accounts managed by PIMCO

investing alongside the Fund and as such guarantees are not for

borrowed money, they will typically not be included under the Fund’s

leverage limitations.

Valuation Risk

Certain securities, including certain real estate investments that the

Fund makes, in which the Fund invests may be less liquid and more

difficult to value than other types of securities. Investments for which

market quotations are not readily available are valued at fair value as

determined in good faith pursuant to Rule 2a-5 under the Act. See

“How Fund Shares are Priced.” Fair value pricing may require subjective

determinations about the value of a security or other asset. As a result,

there can be no assurance that fair value pricing will result in

adjustments to the prices of securities or other assets, or that fair value

pricing will reflect actual market value, and it is possible that the fair

value determined for a security or other asset will be materially different

from quoted or published prices, from the prices used by others for the

same security or other asset and/or from the value that actually could be

or is realized upon the sale of that security or other asset. The price the

Fund pays for its private commercial real estate investments will be

based on the Investment Manager’s projections of market demand,

occupancy levels, rental income, the costs of any development,

redevelopment or renovation of a property, borrower expertise and

other factors. If any of the Investment Manager’s projections are

inaccurate or it ascribes a higher value to assets and their value

subsequently drops or fails to rise because of market factors, returns on

the Fund’s investment may be lower than expected and the Fund could

experience losses.

For the purposes of calculating the Fund’s NAV, private commercial real

estate investments typically will initially be valued at cost, which the

Fund expects to represent fair value at that time. Thereafter, valuations

of properties will be derived from independent property appraisals or

based on one or more fair valuation methodologies as determined by

PIMCO in accordance with its policies and procedures.

The valuation methodologies used to value the Fund’s private

commercial real estate investments will involve subjective judgments

and projections that may not materialize. Valuation methodologies will

also involve assumptions and opinions about future events, which may

or may not materialize. Valuations and appraisals of the Fund’s private

commercial real estate investments will be only estimates of fair value.

Ultimate realization of the value of an asset depends to a great extent

on economic, market and other conditions beyond the Fund’s control

and the control of the Investment Manager and the Fund’s independent

valuation advisors, as applicable.

Valuations and appraisals of the Fund’s private commercial real estate

investments are only conducted on a periodic basis. If the relevant

asset’s value changes after such appraisal, it will be difficult for PIMCO

to quantify the impact of such change and the necessary information to

make a full assessment of the value may not be immediately available,

which may require the Investment Manager to make an assessment of

fair value with incomplete information. The participation of PIMCO in

the Fund’s valuation process could result in a conflict of interest, since

the advisory fee is based on the Fund’s average daily net assets. A

material change in a private commercial real estate investment or a new

appraisal of a private commercial real estate investment may have a

material impact on the Fund’s overall NAV, resulting in a sudden

increase or decrease to the Fund’s NAV per share. Further, valuations do

not necessarily represent the price at which an asset would sell, since

market prices of assets can only be determined by negotiation between

a willing buyer and seller. As such, the carrying value of an asset may

not reflect the price at which the asset could be sold in the market, and

the difference between carrying value and the ultimate sales price could

be material. In addition, accurate valuations are more difficult to obtain

in times of low transaction volume because there are fewer market

transactions that can be considered in the context of the appraisal. It

also may be difficult to reflect fully and accurately rapidly changing

market conditions or material events that may impact the value of the

Fund’s real property investments between valuations, or to obtain

complete information regarding any such events in a timely manner. For

example, an unexpected termination or renewal of a material lease, a

material increase or decrease in vacancies, an unanticipated structural

or environmental event at a property or material changes in market,

economic and political conditions globally and in the jurisdictions and

sectors in which a property operates, may cause the value of a property

to change materially, yet obtaining sufficient relevant information after

the occurrence has come to light and/or analyzing fully the financial

impact of such an event may be difficult to do and may require some

time. As a result, the Fund’s NAV per share may not reflect a material

event until such time as sufficient information is available and the

impact of such an event on a property’s valuation is evaluated, such that

the Fund’s NAV may be appropriately updated. The Investment Manager

expects to utilize the independent valuation advisors’ appraisals in

determining the fair value of the private commercial real estate

investments. There will be no retroactive adjustment in the valuation of

such assets, the offering price of the Common Shares, the price the Fund

paid to repurchase Common Shares or NAV-based fees the Fund paid to

PIMCO and the Distributor to the extent such valuations prove to not

accurately reflect the realizable value of the Fund’s assets. Because the

price shareholders will pay for Common Shares in this offering, and the

price at which shares will be repurchased in quarterly repurchase offers

by the Fund, are based on NAV per share of Common Shares,

shareholders may pay more than realizable value or receive less than

realizable value for an investment in the Fund.

Risks Related to Specific Private Commercial Real Estate

Property Types

The Fund may invest across various CRE property types, including, but

not limited to residential, industrial, and office, retail, hospitality and

select niche sectors. The Fund’s exposure to any of the aforementioned

property types may change based on PIMCO’s outlook, which may

expose the Fund to risks. For example, the Fund’s investments in

multifamily properties may be affected by declining rents or may incur

vacancies either by the expiration and non-renewal of tenant leases or

the continued default of tenants under their leases, resulting in reduced

revenues and less cash available to distribute to Common Shareholders.

Fluctuations in manufacturing activity in the United States may

adversely affect the tenants of the Fund’s industrial properties and

therefore the demand for and profitability of its industrial properties.

Office properties are subject to risks that the tenants of those office

properties face, including the overall health of the economy, the

possibility of a downturn in the businesses operated by the tenants, lack

of demand or obsolescence of the products or services provided by the

tenants, and the non-competitiveness of the office tenants relative to

their competitors. Specialty properties are subject to risks specific to

their specialty use. For example, student housing properties are subject

to seasonality and increased leasing risk and may be adversely affected

by a change in university admission policies. Additional niche sectors

may include, among others, data centers, life sciences, medical offices,

and self-storage. The above is not an exhaustive list of the sectors that

the Fund expects to invest in or the risks associated with those sectors.

The Fund is not obliged to target all (or any one) of the above asset

classes or strategies.

Mortgage Loan Risk

The Fund may originate and selectively acquire senior mortgage loans

which are generally loans secured by a first mortgage lien on a

commercial property and are subject to risks of delinquency and

foreclosure and risks of loss, that are greater than similar risks

associated with loans made on the security of single-family residential

property. In addition, certain of the mortgage loans in which the Fund

invests may be structured so that all or a substantial portion of the

principal will not be paid until maturity, which increases the risk of

default at that time. The ability of a borrower to repay a loan secured by

an income-producing property typically is dependent primarily upon the

successful operation of such property rather than upon the existence of

independent income or assets of the borrower. If the net operating

income of the property is reduced, the borrower’s ability to repay the

loan may be impaired. Net operating income of an income-producing

property can be affected by, among other things: tenant mix, success of

tenant businesses, property management decisions, property location

and condition, competition from comparable types of properties,

changes in laws that increase operating expense or limit rents that may

be charged, any need to address environmental contamination at the

property, the occurrence of any uninsured casualty at the property,

changes in national, regional or local economic conditions and/or

specific industry segments, declines in regional or local real estate

values, declines in regional or local rental or occupancy rates, increases

in interest rates, real estate tax rates and other operating expenses,

changes in governmental rules, regulations and fiscal policies, including

environmental legislation, acts of God, terrorism, social unrest, civil

disturbances, epidemics and other public crises.

In the event of any default under a mortgage loan held directly by the

Fund, it will bear a risk of loss of principal to the extent of any deficiency

between the value of the collateral and the principal and accrued

interest of the mortgage loan, which could have a material adverse

effect on the profitability of the Fund. In the event of the bankruptcy of

a mortgage loan borrower, the mortgage loan to such borrower will be

deemed to be secured only to the extent of the value of the underlying

collateral at the time of bankruptcy (as determined by the bankruptcy

court), and the lien securing the mortgage loan will be subject to the

avoidance powers of the bankruptcy trustee or debtor-in-possession to

the extent the lien is unenforceable under state law.

Foreclosure of a mortgage loan can be an expensive and lengthy

process which could have a substantial negative effect on the Fund’s

anticipated return on the foreclosed mortgage loan. RMBS evidence

interests in or are secured by pools of residential mortgage loans and

CMBS evidence interests in or are secured by a single commercial

mortgage loan or a pool of commercial mortgage loans. Accordingly, the

mortgage-backed securities in which the Fund invests are subject to all

of the risks of the underlying mortgage loans.

Mezzanine Loan Risk

The Fund may invest in mezzanine loans that take the form of

subordinated loans secured by a pledge of the ownership interests of

either the entity owning the real property or the entity that owns the

interest in the entity owning the real property. These types of

investments involve a higher degree of risk than first mortgage lien

loans secured by income producing real property because the

investment may become unsecured as a result of foreclosure by the

senior lender. In the event of a bankruptcy of the entity providing the

pledge of its ownership interests as security, the Fund may not have full

recourse to the assets of such entity, or the assets of the entity may not

be sufficient to satisfy the Fund’s mezzanine loan. If a borrower defaults

on the Fund’s mezzanine loan or debt senior to the Fund’s loan, or in

the event of a borrower bankruptcy, the Fund’s mezzanine loan will be

satisfied only after the senior debt. As a result, the Fund may not recover

some or all of its investment. In addition, mezzanine loans may have

higher loan-to-value ratios than conventional mortgage loans, resulting

in less equity in the real property and increasing the risk of loss of

principal.

Certain Affiliations

Certain broker-dealers may be considered to be affiliated persons of the

Fund and/or the Investment Manager due to their possible affiliations

with Allianz SE, the ultimate parent of the Investment Manager, or

another Allianz entity. Allianz Asset Management of America LP merged

with Allianz Asset Management, with the latter being the surviving

entity, effective January 1, 2023. Following the merger, Allianz Asset

Management is PIMCO LLC’s managing member and direct parent

entity. Absent an exemption from the SEC or other regulatory relief, the

Fund is generally precluded from effecting certain principal transactions

with affiliated brokers, and its ability to purchase securities being

underwritten by an affiliated broker or a syndicate including an affiliated

broker, or to utilize affiliated brokers for agency transactions, is subject

to restrictions. This could limit the Fund’s ability to engage in securities

transactions and take advantage of market opportunities.

Mortgage-Related and Other Asset-Backed Instruments Risk

The mortgage-related assets in which the Fund may invest include, but

are not limited to, any security, instrument or other asset that is related

to U.S. or non-U.S. mortgages, including those issued by private

originators or issuers, or issued or guaranteed as to principal or interest

by the U.S. government or its agencies or instrumentalities or by

non-U.S. governments or authorities, such as, without limitation, assets

representing interests in, collateralized or backed by, or whose values

are determined in whole or in part by reference to any number of

mortgages or pools of mortgages or the payment experience of such

mortgages or pools of mortgages, including REMICs, which could

include Re-REMICs, mortgage pass-through securities, inverse floaters,

CMOs, CLOs, multiclass pass-through securities, private mortgage

pass-through securities, stripped mortgage securities (generally

interest-only and principal-only securities), mortgage-related asset

backed securities and mortgage-related loans (including through

participations, assignments, originations and whole loans), including

commercial and residential mortgage loans. Exposures to

mortgage-related assets through derivatives or other financial

instruments will be considered investments in mortgage-related assets.

The Fund may also invest in other types of ABS, including CDOs, CBOs

and CLOs and other similarly structured securities. See “Investment

Objectives and Strategies-Portfolio Composition” in this prospectus for

a description of the various mortgage-related and other asset-backed

instruments in which the Fund may invest and their related risks.

Mortgage-related and other asset-backed instruments represent

interests in “pools” of mortgages or other assets such as consumer

loans or receivables held in trust and often involve risks that are

different from or possibly more acute than risks associated with other

types of debt instruments.

Generally, rising interest rates tend to extend the duration of fixed rate

mortgage-related assets, making them more sensitive to changes in

interest rates. Compared to other fixed income investments with similar

maturity and credit, mortgage-related securities may increase in value to

a lesser extent when interest rates decline and may decline in value to a

similar or greater extent when interest rates rise. As a result, in a period

of rising interest rates, the Fund may exhibit additional volatility since

individual mortgage holders are less likely to exercise prepayment

options, thereby putting additional downward pressure on the value of

these securities and potentially causing the Fund to lose money. This is

known as extension risk. Mortgage-backed securities can be highly

sensitive to rising interest rates, such that even small movements can

cause the Fund to lose value. Mortgage-backed securities, and in

particular those not backed by a government guarantee, are subject to

credit risk. When interest rates decline, borrowers may pay off their

mortgages sooner than expected. This can reduce the returns of the

Fund because the Fund may have to reinvest that money at the lower

prevailing interest rates. In addition, the creditworthiness, servicing

practices, and financial viability of the servicers of the underlying

mortgage pools present significant risks. For instance, a servicer may be

required to make advances in respect of delinquent loans underlying the

mortgage-related securities; however, servicers experiencing financial

difficulties may not be able to perform these obligations. Additionally,

both mortgage-related securities and asset-backed securities are subject

to risks associated with fraud or negligence by, or defalcation of, their

servicers. These securities are also subject to the risks of the underlying

loans. In some circumstances, a servicer’s or originator’s mishandling of

documentation related to the underlying collateral (e.g., failure to

properly document a security interest in the underlying collateral) may

affect the rights of security holders in and to the underlying collateral. In

addition, the underlying loans may have been extended pursuant to

inappropriate underwriting guidelines, to no underwriting guidelines at

all, or to fraudulent origination practices. The owner of a

mortgage-backed security’s ability to recover against the sponsor,

servicer or originator is uncertain and is often limited. The Fund’s

investments in other asset-backed instruments are subject to risks

similar to those associated with mortgage-related assets, as well as

additional risks associated with the nature of the assets and the

servicing of those assets. Payment of principal and interest on

asset-backed instruments may be largely dependent upon the cash

flows generated by the assets backing the instruments, and

asset-backed instruments may not have the benefit of any security

interest in the related assets.

Subordinate mortgage-backed or asset-backed instruments are paid

interest only to the extent that there are funds available to make

payments. To the extent the collateral pool includes a large percentage

of delinquent loans, there is a risk that interest payments on

subordinate mortgage-backed or asset-backed instruments will not be

fully paid.

There are multiple tranches of mortgage-backed and asset-backed

instruments, offering investors various maturity and credit risk

characteristics. For example, tranches may be categorized as senior,

mezzanine, and subordinated/equity or “first loss,” according to their

degree of risk. The most senior tranche of a mortgage-backed or

asset-backed instrument generally has the greatest collateralization and

generally pays the lowest interest rate. If there are defaults or the

collateral otherwise underperforms, scheduled payments to senior

tranches take precedence over those of mezzanine tranches, and

scheduled payments to mezzanine tranches take precedence over those

to subordinated/equity tranches. Lower tranches represent lower

degrees of credit quality and pay higher interest rates intended to

compensate for the attendant risks. The return on the lower tranches is

especially sensitive to the rate of defaults in the collateral pool.

The lowest tranche (i.e., the “equity” or “residual” tranche) specifically

receives the residual interest payments (i.e., money that is left over after

the higher tranches have been paid and expenses of the issuing entities

have been paid) rather than a fixed interest rate. The Fund may also

invest in the residual or equity tranches of mortgage-related and other

asset-backed instruments, which may be referred to as subordinate

mortgage-backed or asset-backed instruments and interest-only

mortgage-backed or asset-backed instruments. The Fund expects that

investments in subordinate mortgage-backed and other asset-backed

instruments will be subject to risks arising from delinquencies and

foreclosures, thereby exposing its investment portfolio to potential

losses. Subordinate securities of mortgage-backed and other

asset-backed instruments are also subject to greater credit risk than

those mortgage-backed or other asset-backed instruments that are

more highly rated.

The mortgage markets in the United States and in various foreign

countries have experienced extreme difficulties in the past that

adversely affected the performance and market value of certain

mortgage-related investments. Delinquencies and losses on residential

and commercial mortgage loans (especially subprime and second-lien

mortgage loans) may increase, and a decline in or flattening of housing

and other real property values may exacerbate such delinquencies and

losses. In addition, reduced investor demand for mortgage loans and

mortgage-related securities and increased investor yield requirements

have caused limited liquidity in the secondary market for

mortgage-related securities, which can adversely affect the market value

of mortgage-related securities. It is possible that such limited liquidity in

such secondary markets could continue or worsen.

Risks Related to Investments in Publicly Traded REITs

The Fund’s investments in the securities of publicly traded REITs will be

subject to a variety of risks affecting those REITs directly. Share prices of

publicly traded REITs may decline because of adverse developments

affecting the real estate industry and real property values, including

supply and demand for properties, the economic health of the country

or of different regions, the strength of specific industries that rent

properties and interest rates. REITs often invest in highly leveraged

properties. Returns from REITs, which typically are small or medium

capitalization stocks, may trail returns from the overall stock market. In

addition, changes in interest rates may hurt real estate values or make

REIT shares less attractive than other income-producing investments.

REITs are also subject to heavy cash flow dependency and defaults by

borrowers and tenants.

Repurchase Offers Risk

As described under “Periodic Repurchase Offers” above, the Fund is an

“interval fund” and, in order to provide liquidity to shareholders, the

Fund, subject to applicable law, intends to conduct quarterly repurchase

offers of the Fund’s outstanding Common Shares at NAV, subject to

approval of the Board. In each quarter, such repurchase offers will be for

at least 5% and not more than 25% of its outstanding Common Shares

at NAV, pursuant to Rule 23c-3 under the Act.

The Fund currently expects to conduct quarterly repurchase offers for

5% of its outstanding Common Shares under ordinary circumstances.

The Fund believes that these repurchase offers are generally beneficial

to the Fund’s shareholders, and repurchases generally will be funded

from available cash or sales of portfolio securities. However, repurchase

offers and the need to fund repurchase obligations may affect the ability

of the Fund to be fully invested or force the Fund to maintain a higher

percentage of its assets in liquid investments, which may harm the

Fund’s investment performance. Moreover, diminution in the size of the

Fund through repurchases may result in untimely sales of portfolio

securities (with associated imputed transaction costs, which may be

significant), and may limit the ability of the Fund to participate in new

investment opportunities or to achieve its investment objectives. The

Fund may accumulate cash by holding back (i.e., not reinvesting)

payments received in connection with the Fund’s investments. If at any

time cash and other liquid assets held by the Fund are not sufficient to

meet the Fund’s repurchase obligations, the Fund intends, if necessary,

to sell investments. To the extent the Fund employs investment leverage,

repurchases of Common Shares would compound the adverse effects of

leverage in a declining market. In addition, if the Fund borrows to

finance repurchases, interest on that borrowing will negatively affect

Common Shareholders who do not tender their Common Shares by

increasing the Fund’s expenses and reducing any net investment

income. If a repurchase offer is oversubscribed, the Fund may, but is not

required to, determine to increase the amount repurchased by up to 2%

of the Fund’s outstanding shares as of the date of the Repurchase

Request Deadline. In the event that the Fund determines not to

repurchase more than the repurchase offer amount, or if shareholders

tender more than the repurchase offer amount plus 2% of the Fund’s

outstanding shares as of the date of the Repurchase Request Deadline,

the Fund will repurchase the Common Shares tendered on a pro rata

basis, and shareholders will have to wait until the next repurchase offer

to make another repurchase request. As a result, shareholders may be to

liquidate all or a given percentage of their investment in the Fund

during a particular repurchase offer. Some shareholders, in anticipation

of proration, may tender more Common Shares than they wish to have

repurchased in a particular quarter, thereby increasing the likelihood

that proration will occur. A shareholder may be subject to market and

other risks, and the NAV of Common Shares tendered in a repurchase

offer may decline between the Repurchase Request Deadline and the

date on which the NAV for tendered Common Shares is determined. In

addition, the repurchase of Common Shares by the Fund may be a

taxable event to shareholders.

High Yield Securities Risk

Issuers of high yield securities may have the right to “call” or redeem

the issue prior to maturity, which may result in the Fund having to

reinvest the proceeds in other high yield securities or similar instruments

that may pay lower interest rates. The Fund may also be subject to

greater levels of liquidity risk than funds that do not invest in high yield

securities. Consequently, transactions in high yield securities may

involve greater costs than transactions in more actively traded

securities. A lack of publicly-available information, irregular trading

activity and wide bid/ask spreads among other factors, may, in certain

circumstances, make high yield debt more difficult to sell at an

advantageous time or price than other types of securities or

instruments. These factors may result in the Fund being unable to realize

full value for these securities and/or may result in the Fund not receiving

the proceeds from a sale of a high yield security for an extended period

after such sale, each of which could result in losses to the Fund. To the

extent that the Fund invests in high yield securities and unrated

securities of similar credit quality (commonly known as “high yield

securities” or “junk bonds”), the Fund may be subject to greater levels

of credit risk, call risk and liquidity risk than funds that do not invest in

such securities, which could have a negative effect on the NAV of the

Fund’s Common Shares or Common Share dividends. These securities

are considered predominantly speculative with respect to an issuer’s

continuing ability to make principal and interest payments, and may be

more volatile than other types of securities. An economic downturn or

individual corporate developments could adversely affect the market for

these securities and reduce the Fund’s ability to sell these securities at

an advantageous time or price. The Fund may purchase distressed

securities that are in default or the issuers of which are in bankruptcy,

which involve heightened risks.

High yield securities structured as zero-coupon bonds or pay-in-kind

securities tend to be especially volatile as they are particularly sensitive

to downward pricing pressures from rising interest rates or widening

spreads and may require the Fund to make taxable distributions of

imputed income without receiving the actual cash currency. Issuers of

high yield securities may have the right to “call” or redeem the issue

prior to maturity, which may result in the Fund having to reinvest the

proceeds in other high yield securities or similar instruments that may

pay lower interest rates. The Fund may also be subject to greater levels

of liquidity risk than funds that do not invest in high yield securities.

Consequently, transactions in high yield securities may involve greater

costs than transactions in more actively traded securities. A lack of

publicly-available information, irregulat trading actviity and wide

bid/ask spreads among other factors, may, in certain circumstances,

make high yield debt more difficult to sell at an advantageous time or

price than other types of securities or instruments. These factors may

result in the Fund being unable to realize full value for these securities

and/or may result in the Fund not receiving the proceeds from a sale of

a high yield security for an extended period after such sale, each of

which could result in losses to the Fund. Because of the risks involved in

investing in high yield securities, an investment in the Fund should be

considered speculative.

In general, lower rated debt securities carry a greater degree of risk that

the issuer will lose its ability to make interest and principal payments,

which could have a negative effect on the Fund. Securities of below

investment grade quality are regarded as having predominantly

speculative characteristics with respect to capacity to pay interest and

repay principal and are commonly referred to as “high yield” securities

or “junk bonds.” High yield securities involve a greater risk of default

and their prices are generally more volatile and sensitive to actual or

perceived negative developments. Debt securities in the lowest

investment grade category also may be considered to possess some

speculative characteristics by certain rating agencies. The Fund may

purchase stressed or distressed securities that are in default or the

issuers of which are in bankruptcy, which involve heightened risks. An

economic downturn could severely affect the ability of issuers

(particularly those that are highly leveraged) to service or repay their

debt obligations. Lower-rated securities are generally less liquid than

higher-rated securities, which may have an adverse effect on the Fund’s

ability to dispose of them. For example, under adverse market or

economic conditions, the secondary market for below investment grade

securities could contract further, independent of any specific adverse

changes in the condition of a particular issuer, and certain securities in

the Fund’s portfolio may become illiquid or less liquid. As a result, the

Fund could find it more difficult to sell these securities or may be able to

sell these securities only at prices lower than if such securities were

widely traded. To the extent the Fund focuses on below investment

grade debt obligations, PIMCO’s capabilities in analyzing credit quality

and associated risks will be particularly important, and there can be no

assurance that PIMCO will be successful in this regard. The Fund’s credit

quality policies apply only at the time a security is purchased, and the

Fund is not required to dispose of a security in the event that a rating

agency or PIMCO downgrades its assessment of the credit

characteristics of a particular issue. In determining whether to retain or

sell such a security, PIMCO may consider factors including, but not

limited to, PIMCO's assessment of the credit quality of the issuer of such

security, the price at which such security could be sold and the rating, if

any, assigned to such security by other rating agencies. Analysis of

creditworthiness may be more complex for issuers of high yield

securities than for issuers of higher quality debt securities.

Capital Markets Risk

The Fund expects to fund a portion of its commercial real estate

investments with property-level financing. The Fund’s business may be

adversely affected by disruptions in the debt and equity capital markets

and institutional lending market, including the lack of access to capital

or prohibitively high costs of obtaining or replacing capital. The ongoing

spread of COVID-19 has had, and may continue to have, a material

adverse effect on credit markets. There can be no assurance that any

financing will be available to the Fund in the future on acceptable

terms, if at all, or that it will be able to satisfy the conditions precedent

required to use its credit facilities, if entered into, which could reduce

the number, or alter the type, of investments that the Fund would make

otherwise. This may reduce the Fund’s income. To the extent that

financing proves to be unavailable when needed, the Fund may be

compelled to modify its investment strategies to optimize the

performance of the portfolio. Any failure to obtain financing could have

a material adverse effect on the continued development or growth of

the Fund’s business and harm the Fund’s ability to operate and make

distributions.

Interest Rate Risk

Interest rate risk is the risk that fixed income securities and other

instruments in the Fund’s portfolio will fluctuate in value because of a

change in interest rates. For example, as nominal interest rates rise, the

value of certain fixed income securities held by the Fund is likely to

decrease. A nominal interest rate can be described as the sum of a real

interest rate and an expected inflation rate. Interest rate changes can be

sudden and unpredictable, and the Fund may lose money as a result of

movements in interest rates. The Fund may not be able to effectively

hedge against changes in interest rates or may choose not to do so for

cost or other reasons.

A wide variety of factors can cause interest rates or yields of

U.S. Treasury securities (or yields of other types of bonds) to rise,

including but not limited to central bank monetary policies, changing

inflation or real growth rates, general economic conditions, increasing

bond issuances or reduced market demand for low yielding investments.

Risks associated with changes in interest rates may be heightened

under certain market conditions, such as during times when the Federal

Reserve raises interest rates or when such rates remain elevated

following a period of historically low levels. Additionally, the U.S. and

other governments have increased, and are likely to continue increasing,

their debt issuances, which may also heighten these risks. In addition,

changes in monetary policy may exacerbate the risks associated with

changing interest rates. Further, in market environments where interest

rates are rising, issuers may be less willing or able to make principal and

interest payments on fixed-income investments when due. There is the

risk that the income generated by investments may not keep pace with

inflation. Actions by governments and central banking authorities can

result in increases or decreases in interest rates. Periods of higher

inflation could cause such authorities to raise interest rates, which may

adversely affect a Fund and its investments.

Further, fixed income securities with longer durations tend to be more

sensitive to changes in interest rates, usually making them more volatile.

Duration is a measure used to determine the sensitivity of a security’s

price to changes in interest rates that incorporates a security’s yield,

coupon, final maturity and call features, among other characteristics.

Duration is useful primarily as a measure of the sensitivity of a fixed

income security’s market price to interest rate (i.e., yield) movements. All

other things remaining equal, for each one percentage point increase in

interest rates, the value of a portfolio of fixed income investments would

generally be expected to decline by one percent for every year of the

portfolio’s average duration above zero. For example, the value of a

portfolio of fixed income securities with an average duration of eight

years would generally be expected to decline by approximately 8% if

interest rates rose by one percentage point.

Variable and floating rate securities may decline in value if their interest

rates do not rise as much, or as quickly, as interest rates in general.

Conversely, floating rate securities will not generally increase in value if

interest rates decline. Inverse floating rate securities may decrease in

value if interest rates increase. Inverse floating rate securities may also

exhibit greater price volatility than a fixed rate obligation with similar

credit quality. When the Fund holds variable or floating rate securities, a

decrease (or, in the case of inverse floating rate securities, an increase)

in market interest rates will adversely affect the income received from

such securities and the NAV of the Fund’s shares.

During periods of very low or negative interest rates, the Fund may be

unable to maintain positive returns. Very low or negative interest rates

may magnify interest rate risk. Changing interest rates, including rates

that fall below zero, may have unpredictable effects on markets, may

result in heightened market volatility and may detract from Fund

performance to the extent the Fund is exposed to such interest rates.

Measures such as average duration may not accurately reflect the true

interest rate sensitivity of the Fund. This is especially the case if the Fund

consists of securities with widely varying durations. Therefore, if the

Fund has an average duration that suggests a certain level of interest

rate risk, the Fund may in fact be subject to greater interest rate risk

than the average would suggest. This risk is greater to the extent the

Fund uses leverage or derivatives in connection with the management

of the Fund.

Convexity is an additional measure used to understand a security's or

Fund's interest rate sensitivity. Convexity measures the rate of change of

duration in response to changes in interest rates. With respect to a

security’s price, a larger convexity (positive or negative) may imply more

dramatic price changes in response to changing interest rates. Convexity

may be positive or negative. Negative convexity implies that interest

rate increases result in increased duration, meaning increased sensitivity

in prices in response to rising interest rates. Thus, securities with

negative convexity, which may include bonds with traditional call

features and certain mortgage-backed securities, may experience

greater losses in periods of rising interest rates. Accordingly, if the Fund

holds such securities, the Fund may be subject to a greater risk of losses

in periods of rising interest rates.

Rising interest rates may result in a decline in value of the Fund’s fixed

income investments and in periods of volatility. Also, when interest rates

rise, issuers are less likely to refinance existing debt securities, causing

the average life of such securities to extend. Further, while U.S. bond

markets have steadily grown over the past three decades, dealer

“market making” ability has remained relatively stagnant. As a result,

dealer inventories of certain types of bonds and similar instruments,

which provide a core indication of the ability of financial intermediaries

to “make markets,” are at or near historic lows in relation to market

size. Because market makers provide stability to a market through their

intermediary services, a significant reduction in dealer inventories could

potentially lead to decreased liquidity and increased volatility in the

fixed income markets. Such issues may be exacerbated during periods of

economic uncertainty. All of these factors, collectively and/or

individually, could cause the Fund to lose value.

Regulatory Risk — LIBOR Risk

Certain instruments in which the Fund may invest have relied or

continue to rely in some fashion upon LIBOR. LIBOR was traditionally an

average interest rate, determined by the ICE Benchmark Administration,

that banks charge one another for the use of short-term money. On

March 5, 2021, the FCA, the United Kingdom’s financial regulatory body

and regulator of LIBOR, publicly announced that all U.S. Dollar LIBOR

settings will either cease to be provided by any administrator or will no

longer be representative (i) immediately after December 31, 2021 for

one-week and two-month U.S. Dollar LIBOR settings and (ii)

immediately after June 30, 2023 for the remaining U.S. Dollar LIBOR

settings. As of January 1, 2022, as a result of supervisory guidance from

U.S. regulators, U.S. regulated entities have generally ceased entering

into new LIBOR contracts with limited exceptions. Publication of all

Japanese yen and the one- and six-month sterling LIBOR settings have

ceased, and while publication of the three-month Sterling LIBOR setting

will continue through at least the end of March 2024 on the basis of a

changed methodology (known as “synthetic LIBOR”), this rate has been

designated by the FCA as unrepresentative of the underlying market

that it seeks to measure and is solely available for use in legacy

transactions. Certain bank-sponsored committees in other jurisdictions,

including Europe, the United Kingdom, Japan and Switzerland, have

selected alternative reference rates denominated in other currencies.

Although the transition process away from LIBOR for many instruments

has been completed, some LIBOR use is continuing and there are

potential effects related to the transition away from LIBOR or continued

use of LIBOR on the Fund, or on certain instruments in which the Fund

invests, which can be difficult to ascertain, and may vary depending on

factors that include, but are not limited to: (i) existing fallback or

termination provisions in individual contracts and (ii) whether, how, and

when industry participants adopt new reference rates for affected

instruments. So-called “tough legacy” contracts have LIBOR interest

rate provisions with no fallback provisions contemplating a permanent

discontinuation of LIBOR, inadequate fallback provisions or fallback

provisions which may not effectively result in a transition away from

LIBOR prior to LIBOR’s planned replacement date. On March 15, 2022,

the Adjustable Interest Rate (LIBOR) Act was signed into law. This law

provides a statutory fallback mechanism on a nationwide basis to

replace LIBOR with a benchmark rate that is selected by the Board of

Governors of the Federal Reserve System based on SOFR for tough

legacy contracts. On February 27, 2023, the Federal Reserve System’s

final rule in connection with this law became effective, establishing

benchmark replacements based on SOFR and Term SOFR (a

forward-looking measurement of market expectations of SOFR implied

from certain derivatives markets) for applicable tough legacy contracts

governed by U.S. law. In addition, the FCA has announced that it will

require the publication of synthetic LIBOR for the one-month,

three-month and six-month U.S. Dollar LIBOR settings after June 30,

2023 through at least September 30, 2024. Certain of the Fund’s

investments may involve individual tough legacy contracts which may

be subject to the Adjustable Interest Rate (LIBOR) Act or synthetic LIBOR

and no assurances can be given that these measures will have had the

intended effects. Moreover, certain aspects of the transition from LIBOR

have relied or will continue to rely on the actions of third-party market

participants, such as clearing houses, trustees, administrative agents,

asset servicers and certain service providers; PIMCO cannot guarantee

the performance of such market participants and any failure on the part

of such market participants to manage their part of the LIBOR transition

could impact the Fund. The transition of investments from LIBOR to a

replacement rate as a result of amendment, application of existing

fallbacks, statutory requirements or otherwise may also result in a

reduction in the value of certain instruments held by the Fund or a

reduction in the effectiveness of related Fund transactions such as

hedges. In addition, an instrument’s transition to a replacement rate

could result in variations in the reported yields of the Fund that holds

such instrument. Any such effects of the transition away from LIBOR, as

well as other unforeseen effects, could result in losses to the Fund.

Derivatives Risk

The use of derivative and other similar instruments (referred to

collectively as “derivatives”) involves risks different from, and possibly

greater than, the risks associated with investing directly in securities and

other traditional investments. Derivatives are subject to a number of

risks, such as liquidity risk (which may be heightened for

highly-customized derivatives), interest rate risk, market risk, credit risk,

leveraging risk, counterparty risk (including credit), operational risk,

legal risk, tax risk and management risk, as well as risks arising from

changes in applicable requirements, risks arising from margin

requirements and risks arising from mispricing or valuation complexity.

They also involve the risk of unfavorable or ambiguous documentation

and the risk that changes in the value of the derivative may not

correlate perfectly with the underlying asset, rate or index. If the Fund

invests in a derivative instrument, it could lose more than the principal

amount invested and derivatives may increase the volatility of the Fund,

especially in unusual or extreme market conditions. The Fund may be

required to hold additional cash or sell other investments in order to

obtain cash to close out a position and changes in the value of a

derivative may also create margin delivery or settlement payment

obligations for the Fund. Also, suitable derivative transactions may not

be available in all circumstances and there can be no assurance that the

Fund will engage in these transactions to reduce exposure to other risks

when that would be beneficial. The Fund’s use of derivatives may

increase or accelerate the amount of taxes payable by Common

Shareholders.

Participation in the markets for derivative instruments involves

investment risks and transaction costs to which the Fund may not be

subject absent the use of these strategies.

Non-centrally-cleared over-the-counter (“OTC”) derivatives are also

subject to the risk that a counterparty to the transaction will not fulfill

its contractual obligations to the other party, as many of the protections

afforded to centrally-cleared derivatives might not be available for

non-centrally-cleared OTC derivatives transactions. For derivatives

traded on an exchange or through a central counterparty, credit risk

resides with the Fund’s clearing broker, or the clearinghouse itself.

It may not be possible for the Fund to modify, terminate, or offset the

Fund’s obligations or the Fund’s exposure to the risks associated with a

derivative transaction prior to its scheduled termination or maturity

date, which may create a possibility of increased volatility and/or

decreased liquidity to the Fund. Hedges are sometimes subject to

imperfect matching between the derivative and the underlying

instrument, and there can be no assurance that the Fund’s hedging

transactions will be effective. Because the markets for certain derivative

instruments (including markets located in foreign countries) are

relatively new and still developing, appropriate derivative transactions

may not be available in all circumstances for risk management or other

purposes. Upon the expiration of a particular contract, a Fund may wish

to retain its position in the derivative instrument by entering into a

similar contract, but may be unable to do so if the counterparty to the

original contract is unwilling to enter into the new contract and no other

appropriate counterparty can be found. When such markets are

unavailable, a Fund will be subject to increased liquidity and investment

risk.

When a derivative is used as a hedge against a position that the Fund

holds, any loss generated by the derivative generally should be

substantially offset by gains on the hedged investment, and vice versa.

The regulation of the derivatives markets has increased over the past

several years, and additional future regulation of the derivatives markets

may make derivatives more costly, may limit the availability or reduce

the liquidity of derivatives, or may otherwise adversely affect the value

or performance of derivatives. Any such adverse future developments

could impair the effectiveness or raise the costs of a Fund’s derivative

transactions, impede the employment of the Fund’s derivatives

strategies, or adversely affect the Fund’s performance and cause the

Fund to lose value.

Leverage Risk

The Fund’s use of leverage, if any, creates the opportunity for increased

Common Share net income, but also creates special risks for Common

Shareholders (including an increased risk of loss). To the extent used,

there is no assurance that the Fund’s leveraging strategies will be

successful. Leverage is a speculative technique that may expose the

Fund to greater risk and increased costs. The Fund’s assets attributable

to leverage will be invested in accordance with the Fund’s investment

objectives and policies. Interest expense payable by the Fund with

respect to derivatives and other forms of leverage, and dividends

payable with respect to any Preferred Shares outstanding will generally

be based on shorter-term interest rates that would be periodically reset.

So long as the Fund’s portfolio investments provide a higher rate of

return (net of applicable Fund expenses) than the interest expenses and

other costs to the Fund of such leverage, the investment of the proceeds

thereof will generate more income than will be needed to pay the costs

of the leverage. If so, and all other things being equal, the excess may be

used to pay higher dividends to Common Shareholders than if the Fund

were not so leveraged. If, however, shorter-term interest rates rise

relative to the rate of return on the Fund’s portfolio, the interest and

other costs to the Fund of leverage could exceed the rate of return on

the debt obligations and other investments held by the Fund, thereby

reducing return to Common Shareholders. Leveraging transactions

pursued by the Fund may increase its duration and sensitivity to interest

rate movements. In addition, fees and expenses of any form of leverage

used by the Fund will be borne entirely by the Common Shareholders

(and not by preferred shareholders) and will reduce the investment

return of the Common Shares. Therefore, there can be no assurance that

the Fund’s use of leverage will result in a higher yield on the Common

Shares, and it may result in losses. In addition, any Preferred Shares

issued by the Fund are expected to pay cumulative dividends, which may

tend to increase leverage risk.

Leverage creates several major types of risks for Common Shareholders,

including:

■

the likelihood of greater volatility of NAV of Common Shares, and

of the investment return to Common Shareholders, than a

comparable portfolio without leverage;

■

the possibility either that Common Share dividends will fall if the

interest and other costs of leverage rise, or that dividends paid on

Common Shares will fluctuate because such costs vary over time;

and

■

the effects of leverage in a declining market or a rising interest

rate environment, as leverage is likely to cause a greater decline in

the NAV of the Common Shares than if the Fund were not

leveraged and may result in a greater decline in the market value

of the Common Shares.

■

In addition, the counterparties to the Fund’s leveraging

transactions and any preferred shareholders of the Fund will have

priority of payment over the Fund’s Common Shareholders.

Reverse repurchase agreements involve the risks that the interest

income earned on the investment of the proceeds will be less than the

interest expense and Fund expenses associated with the repurchase

agreement, that the market value of the securities sold by the Fund may

decline below the price at which the Fund is obligated to repurchase

such securities and that the securities may not be returned to the Fund.

There is no assurance that reverse repurchase agreements can be

successfully employed. Dollar roll transactions involve the risk that the

market value of the securities the Fund is required to purchase may

decline below the agreed upon repurchase price of those securities.

Successful use of dollar rolls/buybacks may depend upon the Investment

Manager’s ability to correctly predict interest rates and prepayments.

There is no assurance that dollar rolls/buybacks can be successfully

employed. In connection with reverse repurchase agreements and dollar

rolls/buybacks, the Fund will also be subject to counterparty risk with

respect to the purchaser of the securities. If the broker/dealer to whom

the Fund sells securities becomes insolvent, the Fund’s right to purchase

or repurchase securities may be restricted.

The Fund may engage in total return swaps, reverse repurchases, loans

of portfolio securities, short sales and when-issued, delayed delivery and

forward commitment transactions, credit default swaps, basis swaps

and other swap agreements, purchases or sales of futures and forward

contracts (including foreign currency exchange contracts), call and put

options and/or other derivatives. The Fund’s use of such transactions

gives rise to associated leverage risks described above, and may

adversely affect the Fund’s income, distributions and total returns to

Common Shareholders. To the extent that any offsetting positions do

not behave in relation to one another as expected, the Fund may

perform as if it is leveraged through use of these derivative strategies.

Any total return swaps, reverse repurchases, loans of portfolio securities,

short sales and when-issued, delayed delivery and forward commitment

transactions, credit default swaps, basis swaps and other swap

agreements, purchases or sales of futures and forward contracts

(including foreign currency exchange contracts), call and put options or

other derivatives by the Fund or counterparties to the Fund’s other

leveraging transactions, if any, would have seniority over the Fund’s

Common Shares.

Additional Risks Relating to the Fund’s Preferred Shares

Because the Fund has issued Preferred Shares, it is required to satisfy

certain asset coverage requirements, including those imposed by

regulatory and rating agency requirements. Accordingly, any decline in

the net asset value of the Fund’s investments could result in the risk that

the Fund will fail to meet its asset coverage requirements for such

Preferred Shares or the risk of the Preferred Shares being downgraded

by a rating agency. In an extreme case, the Fund’s current investment

income might not be sufficient to meet the dividend requirements on

any Preferred Shares outstanding. In order to address these types of

events, the Fund might need to dispose of investments in order to fund

a redemption of some or all of its Preferred Shares. Dispositions at times

of adverse economic conditions may result in a loss to the Fund. At

other times, these dispositions may result in gain at the Fund level and

thus in additional taxable distributions to Common Shareholders. See

“Certain U.S. Federal Income Tax Considerations” for more information.

Preferred Shares have seniority over the Fund’s Common Shares.

The Fund pays (and the Common Shareholders bear) all costs and

expenses relating to the issuance and ongoing maintenance of

Preferred Shares. In addition, holders of Preferred Shares issued by the

Fund have complete priority over Common Shareholders in the

distribution of the Fund’s assets. Furthermore, Preferred Shareholders,

voting separately as a single class, have the right to elect two members

of the Board at all times and to elect a majority of the trustees in the

event two full years’ dividends on the Preferred Shares are unpaid, and

also have separate class voting rights on certain matters. Accordingly,

Preferred Shareholders may have interests that differ from those of

Common Shareholders, and may at times have disproportionate

influence over the Fund’s affairs.

Potential Conflicts of Interest Risk – Allocation of Investment

Opportunities

The Investment Manager and its affiliates are involved worldwide with a

broad spectrum of financial services and asset management activities

and may engage in the ordinary course of business in activities in which

their interests or the interests of their clients may conflict with those of

the Fund. The Investment Manager may provide investment

management services to other funds and discretionary managed

accounts that follow an investment program similar to that of the Fund.

Subject to the requirements of the 1940 Act, the Investment Manager

intends to engage in such activities and may receive compensation from

third parties for its services. The results of the Fund’s investment

activities may differ from those of the Fund’s affiliates, or another

account managed by the Fund’s affiliates, and it is possible that the

Fund could sustain losses during periods in which one or more of the

Fund’s affiliates and/or other accounts managed by the Investment

Manager or its affiliates, including proprietary accounts, achieve profits

on their trading.

Geopolitical Conflicts

The occurrence of geopolitical conflicts, war or terrorist activities could

have adverse impacts on markets in various and unpredictable ways. For

example, following Russia’s large-scale invasion of Ukraine in February

2022, Russia, and other countries, persons and entities that were

viewed as having provided material aid to Russia’s aggression against

Ukraine, became the subject of economic sanctions and import and

export controls imposed by countries throughout the world, including

the United States. Such measures have had and may continue to have

an adverse effect on the Russian, Belarusian and other securities and

economies. The extent, duration and impact of geopolitical conflicts and

related market impacts are difficult to ascertain, but could be significant

and could have significant adverse effects on regional and global

economies and the markets for certain securities and commodities, such

as oil and natural gas, as well as other sectors, and on the Fund's

investments.

Cyber Security Risk

As the use of technology, including cloud-based technology, has

become more prevalent in the course of business, the Fund is potentially

more susceptible to operational and information security risks resulting

from breaches in cyber security. A breach in cyber security refers to both

intentional and unintentional cyber events from outside threat actors or

internal resources that may, among other things, cause the Fund to lose

proprietary information, suffer data corruption and/or destruction, lose

operational capacity, result in the unauthorized release or other misuse

of confidential information, or otherwise disrupt normal business

operations. Cyber security breaches may involve unauthorized access to

the Fund’s digital information systems (e.g., through “hacking” or

malicious software coding), and may come from multiple sources,

including outside attacks such as denial-of-service attacks (i.e., efforts to

make network services unavailable to intended users) or cyber extortion,

including exfiltration of data held for ransom and/or “ransomware”

attacks that renders systems inoperable until ransom is paid, or insider

actions (e.g., intentionally or unintentionally harmful acts of PIMCO

personnel). In addition, cyber security breaches involving the Fund’s

third party service providers (including but not limited to advisers,

sub-advisers, administrators, transfer agents, custodians, vendors,

suppliers, distributors and other third parties), trading counterparties or

issuers in which the Fund invests can also subject the Fund to many of

the same risks associated with direct cyber security breaches or

extortion of company data. PIMCO's use of cloud-based service

providers could heighten or change these risks. In addition,

work-from-home arrangements by the Fund, the Investment Manager or

their service providers could increase all of the above risks, create

additional data and information accessibility concerns, and make the

Fund, the Investment Manager or their service providers susceptible to

operational disruptions, any of which could adversely impact their

operations.

Cyber security failures or breaches may result in financial losses to the

Fund and its shareholders. For example, cyber security failures or

breaches involving trading counterparties or issuers in which the Fund

invests could adversely impact such counterparties or issuers and cause

the Fund’s investment to lose value. These failures or breaches may also

result in disruptions to business operations, potentially resulting in

financial losses; interference with the Fund’s ability to calculate its NAV,

process shareholder transactions or otherwise transact business with

shareholders; impediments to trading; violations of applicable privacy

and other laws; regulatory fines; penalties; third-party claims in

litigation; reputational damage; reimbursement or other compensation

costs; additional compliance and cyber security risk management costs

and other adverse consequences. In addition, substantial costs may be

incurred in order to prevent any cyber incidents in the future.

Like with operational risk in general, the Fund has established business

continuity plans and risk management systems designed to reduce the

risks associated with cyber security. However, there are inherent

limitations in these plans and systems, including that certain risks may

not have been identified, in large part because different or unknown

threats may emerge in the future. As such, there is no guarantee that

such efforts will succeed, especially because the Fund does not directly

control the cyber security systems of issuers in which the Fund may

invest, trading counterparties or third-party service providers to the

Fund. Such entities have experienced cyber attacks and other attempts

to gain unauthorized access to systems from time to time, and there is

no guarantee that efforts to prevent or mitigate the effects of such

attacks or other attempts to gain unauthorized access will be successful.

There is also a risk that cyber security breaches may not be detected. The

Fund and its shareholders may suffer losses as a result of a cyber

security breach related to the Fund, its service providers, trading

counterparties or the issuers in which the Fund invests.

Non-U.S. Investment Risk

PIMCO may invest in real estate located outside of the United States

and real estate debt issued in, and/or backed by real estate in, countries

outside the United States. Non-U.S. real estate and real estate-related

investments involve certain factors not typically associated with

investing in real estate and real estate-related investments in the U.S.,

including risks relating to (i) currency exchange matters, including

fluctuations in the rate of exchange between the U.S. dollar and the

various non-U.S. currencies in which such investments are denominated,

and costs associated with conversion of investment principal and

income from one currency into another; (ii) differences in conventions

relating to documentation, settlement, corporate actions, stakeholder

rights and other matters; (iii) differences between U.S. and non-U.S. real

estate markets, including potential price volatility in and relative

illiquidity of some non-U.S. markets; (iv) the absence of uniform

accounting, auditing and financial reporting standards, practices and

disclosure requirements and differences in government supervision and

regulation; (v) certain economic, social and political risks, including

potential exchange-control regulations, potential restrictions on

non-U.S. investment and repatriation of capital, the risks associated with

political, economic or social instability, including the risk of sovereign

defaults, regulatory change, and the possibility of expropriation or

confiscatory taxation or the imposition of withholding or other taxes on

dividends, interest, capital gains, other income or gross sale or

disposition proceeds, and adverse economic and political developments;

(vi) the possible imposition of non-U.S. taxes on income and gains and

gross sales or other proceeds recognized with respect to such

investments; (vii) differing and potentially less well-developed or

well-tested corporate laws regarding stakeholder rights, creditors’ rights

(including the rights of secured parties), fiduciary duties and the

protection of investors; (viii) different laws and regulations including

differences in the legal and regulatory environment or enhanced legal

and regulatory compliance; (ix) political hostility to investments by

foreign investors; (x) less publicly available information; (xi) obtaining or

enforcing a court judgement abroad; (xii) restrictions on foreign

investment in other jurisdictions; and (xiii) difficulties in effecting

repatriation of capital. Furthermore, while PIMCO may have the

capacity, but not the obligation, to mitigate such additional risks,

including through the utilization of certain foreign exchange hedging

instruments, there is no guarantee that PIMCO will be successful in

mitigating such risks and in turn may introduce additional risks and

expenses linked to such efforts.

Property Manager Risk

The Investment Manager hires property managers to manage the Fund’s

properties and leasing agents to lease vacancies in the Fund’s

properties. These property managers may be the Fund’s affiliates or

partners in joint ventures that the Fund enters into. The property

managers have significant decision-making authority with respect to the

management of the Fund’s properties. The Fund’s ability to direct and

control how the Fund’s properties are managed on a day-to-day basis

may be limited because PIMCO engages other parties to perform this

function. Thus, the success of the Fund’s business may depend in large

part on the ability of the Fund’s property managers to manage the

day-to-day operations and the ability of the Fund’s leasing agents to

lease vacancies in the Fund’s properties. Any adversity experienced by,

or problems in the Fund’s relationship with, the Fund’s property

managers or leasing agents could adversely impact the operation and

profitability of the Fund’s properties.

Privacy and Data Security Risk

The GLBA and other laws limit the disclosure of certain non-public

personal information about a consumer to non- affiliated third parties

and require financial institutions to disclose certain privacy policies and

practices with respect to information sharing with both affiliates and

non- affiliated third parties. Many states and a number of

non-U.S. jurisdictions have enacted privacy and data security laws

requiring safeguards on the privacy and security of consumers’

personally identifiable information. Other laws deal with obligations to

safeguard and dispose of private information in a manner designed to

avoid its dissemination. Privacy rules adopted by the U.S. Federal Trade

Commission and SEC implement the GLBA and other requirements and

govern the disclosure of consumer financial information by certain

financial institutions, ranging from banks to private investment funds.

U.S. platforms following certain models generally are required to have

privacy policies that conform to these GLBA and other requirements. In

addition, such platforms typically have policies and procedures intended

to maintain platform participants’ personal information securely and

dispose of it properly. The Fund generally does not intend to obtain or

hold borrowers’ non-public personal information, and the Fund has

implemented procedures reasonably designed to prevent the disclosure

of borrowers’ non-public personal information to the Fund. However,

service providers to the Fund, including their custodians and the

platforms acting as loan servicers for the Fund, may obtain, hold or

process such information. The Fund cannot guarantee the security of

non-public personal information in the possession of such a service

provider and cannot guarantee that service providers have been and will

continue to comply with the GLBA, other data security and privacy laws

and any other related regulatory requirements. Violations of the GLBA

and other laws could subject the Fund to litigation and/or fines,

penalties or other regulatory action, which, individually or in the

aggregate, could have an adverse effect on the Fund. The Fund may also

face regulations related to privacy and data security in the other

jurisdictions in which the Fund invests.

Regulatory Changes Risk

Financial entities, such as investment companies and investment

advisers, are generally subject to extensive government regulation and

intervention. Government regulation and/or intervention may change

the way the Fund is regulated, affect the expenses incurred directly by

the Fund and the value of its investments, and limit and/or preclude the

Fund’s ability to achieve its investment objectives. Government

regulation may change frequently and may have significant adverse

consequences. The Fund and the Investment Manager have historically

been eligible for exemptions from certain regulations. However, there is

no assurance that the Fund and the Investment Manager will continue

to be eligible for such exemptions. Actions by government entities may

also impact certain instruments in which the Fund invests and reduce

market liquidity and resiliency.

Moreover, government regulation may have unpredictable and

unintended effects. Legislative or regulatory actions to address

perceived liquidity or other issues in fixed income markets generally, or

in particular markets such as the municipal securities market, may alter

or impair the Fund’s ability to pursue its investment objectives or utilize

certain investment strategies and techniques.

While there continues to be uncertainty about the full impact of these

and other regulatory changes, it is the case that the Fund will be subject

to a more complex regulatory framework, and may incur additional

costs to comply with new requirements as well as to monitor for

compliance in the future. Actions by governmental entities may also

impact certain instruments in which the Fund invests and reduce market

liquidity and resiliency. For example, the Fund’s investments (including,

but not limited to, repurchase agreements, collateralized loan

obligations and mortgage-backed securities), payment obligations and

financing terms may rely in some fashion on LIBOR. For more

information related to the LIBOR transition, see “Principal Risks of the

Fund - Regulatory Risk – LIBOR”.

Risk Retention Investment Risk

The Fund may invest in risk retention tranches of CMBS or other eligible

securitizations, if any, which are eligible residual interests held by the

sponsors of such securitizations pursuant to the final rules

implementing the credit risk retention requirements of the “U.S. Risk

Retention Rules.” In the case of CMBS transactions, for example, the

U.S. Risk Retention Rules permit all or a portion of the retained credit

risk associated with certain securitizations (i.e., retained risk) to be held

by a “third party purchaser,” such as the Fund, if, among other

requirements, the third-party purchaser holds its retained interest,

unhedged, for at least five years following the closing of the CMBS

transaction, after which it is entitled to transfer its interest in the

securitization to another person that meets the requirements for a

third-party purchaser. Even after the required holding period has

expired, due to the generally illiquid nature of such investments, no

assurance can be given as to what, if any, exit strategies will ultimately

be available for any given position.

In addition, there is limited guidance on the application of the final

U.S. Risk Retention Rules to specific securitization structures. There can

be no assurance that the applicable federal agencies charged with the

implementation of the final U.S. Risk Retention Rules (the Federal

Deposit Insurance Corporation, the Comptroller of the Currency, the

Federal Reserve Board, the SEC, the Department of Housing and Urban

Development, and the Federal Housing Finance Agency) could not take

positions in the future that differ from the interpretation of such rules

taken or embodied in such securitizations, or that the final U.S. Risk

Retention Rules will not change.

Furthermore, in situations where the Fund invests in risk retention

tranches of securitizations structured by third parties, the Fund may be

required to execute one or more letters or other agreements, the exact

form and nature of which will vary under which it will make certain

undertakings designed to ensure such securitization complies with the

final U.S. Risk Retention Rules. Such Risk Retention Agreements may

include a variety of representations, warranties, covenants and other

indemnities, each of which may run to various transaction parties. If the

Fund breaches any undertakings in any Risk Retention Agreement, it will

be exposed to claims by the other parties thereto, including for any

losses incurred as a result of such breach, which could be significant

and exceed the value of the Fund’s investments.

Risks of Investing in Private Real Estate Investment Funds

To the extent the Fund invests in private real estate investment funds,

the Investment Manager will have limited or no control over the

investment decisions made by any such private real estate investment

funds. Investments in private real estate investment funds are illiquid, as

interests are not listed for trading on any securities exchange and there

is little to no secondary market for trading such investments. In addition,

the Investment Manager’s ability to withdraw an investment or allocate

away from the private real estate investment funds, may be constrained

by limitations imposed by the private real estate investment funds. The

illiquid nature of private fund investments may prevent the Fund from

actively managing its portfolio away from underperforming private real

estate investment funds or in uncertain markets.

Under the terms of the limited partnership agreements or limited

liability company operating agreements, as applicable, of many of the

private real estate investment funds in which the Fund may invest, the

Fund will make commitments to make capital contributions in specified

maximum amounts to such private real estate investment funds (each, a

“Capital Contribution”) based on notices provided by the private real

estate investment funds (each, a “Capital Call”). These Capital

Contributions will be made from time to time generally on an as-needed

basis rather than upfront. The Capital Contributions would be used by

the applicable private real estate investment funds to pay specified

expenses of the private real estate investment funds and to make

investments in a manner consistent with the investment strategy or

guidelines established by the applicable private real estate investment

funds. As a result, the Fund, as an investor in a private real estate

investment fund, may be required to make a Capital Contribution to

such private real estate investment fund without the benefit of an

extensive notice period after a Capital Call and without regard to the

Fund’s current financial condition and availability of cash to make such

Capital Contribution.

The limited partnership agreement or limited liability company operating

agreement, as applicable, of the applicable private real estate

investment funds may contain detailed provisions regarding the failure

of an investor in such private real estate investment funds to honor its

Capital Contribution obligation. The consequences that may be imposed

upon a defaulting investor in such private real estate investment funds

include interest on overdue amounts, a loss of voting rights in the

private real estate investment funds as long as the default is continuing,

and (in many cases) a forced sale or forfeiture of the defaulting

investor’s interest in the private real estate investment funds in favor of

the other investors in such private real estate investment funds.

The private real estate investment funds will not be registered as

investment companies under the 1940 Act and, therefore, the Fund will

not be able to avail itself of the protections of the 1940 Act with respect

to the private real estate investment funds, including certain corporate

governance protections, such as the requirement to have a majority

Independent Directors serving on the board, statutory protections

against self-dealings and joint transactions by the institutional asset

managers and their affiliates, and leverage limitations. Furthermore,

some of the institutional asset managers for the private real estate

investment funds may not be registered under the Investment Advisers

Act of 1940 (“Advisers Act”), meaning that the Fund will not be able to

rely on the statutory protections of the Advisers Act.

The valuation of the Fund’s investments in private real estate investment

funds will be determined by the institutional asset managers of those

private real estate investment funds, which valuation may not be

accurate or reliable. While the valuation of the Fund’s publicly traded

securities are more readily ascertainable, the Fund’s ownership interests

in private real estate investment funds are not publicly traded and the

Fund will depend on appraisers, service providers, and the institutional

asset manager to a private real estate investment fund to provide a

valuation, or assistance with a valuation, of those investments. Any such

valuation is a subjective analysis of the fair market value of an asset and

requires the use of techniques that are costly and time-consuming and

ultimately provide no more than an estimate of value. Moreover, the

valuation of the Fund’s investment in a private real estate investment

funds, as provided by an institutional asset manager for its assets as of

a specific date, may vary from the actual sales price of its assets or any

secondary market value price for the underlying fund’s interest, if such

investments were sold to a third party.

Risks Related to the Fund’s REIT Status

If the Fund does not qualify as a REIT, the Fund will be subject to tax as

a regular corporation and could face a substantial tax liability.

The Fund expects to operate so as to qualify as a REIT under the Code.

However, qualification as a REIT involves the application of highly

technical and complex Code provisions for which only a limited number

of judicial or administrative interpretations exist. Notwithstanding the

availability of cure provisions in the Code, various compliance

requirements could be failed and could jeopardize the Fund’s REIT

status. Furthermore, new tax legislation, administrative guidance or

court decisions, in each instance potentially with retroactive effect,

could make it more difficult or impossible for the Fund to qualify as a

REIT. If the Fund fails to qualify as a REIT in any tax year, then:

■

the Fund would be taxed as a regular domestic corporation, which

under current laws, among other things, means being unable to

deduct distributions to Common Shareholders in computing

taxable income and being subject to federal income tax on the

Fund’s taxable income at regular corporate income tax rates;

■

any resulting tax liability could be substantial and could have a

material adverse effect on the Fund’s book value;

■

unless the Fund were entitled to relief under applicable statutory

provisions, the Fund would be required to pay taxes, and

therefore, the Fund’s cash available for distribution to Common

Shareholders would be reduced for each of the years during

which the Fund did not qualify as a REIT and for which the Fund

had taxable income; and

■

the Fund generally would not be eligible to requalify as a REIT for

the subsequent four full taxable years.

To maintain the Fund’s REIT status, the Fund may have to borrow funds

on a short-term basis during unfavorable market conditions.

To qualify as a REIT, the Fund generally must distribute annually to the

Fund’s Common Shareholders a minimum of 90% of the Fund’s net

taxable income, determined without regard to the dividends-paid

deduction and excluding net capital gains. The Fund will be subject to

regular corporate income taxes on any undistributed REIT taxable

income each year. Additionally, the Fund will be subject to a 4%

nondeductible excise tax on any amount by which distributions paid by

the Fund in any calendar year are less than the sum of 85% of the

Fund’s ordinary income, 95% of the Fund’s capital gain net income and

100% of the Fund’s undistributed income from previous years.

Payments to the Fund’s Common Shareholders under the Fund’s share

repurchase plan will not be taken into account for purposes of these

distribution requirements. If the Fund does not have sufficient cash to

make distributions necessary to preserve the Fund’s REIT status for any

year or to avoid taxation, the Fund may be forced to borrow funds or

sell assets even if the market conditions at that time are not favorable

for these borrowings or sales. These options could increase the Fund’s

costs or reduce the Fund’s equity.

Compliance with REIT requirements may cause the Fund to forego

otherwise attractive opportunities, which may hinder or delay the Fund’s

ability to meet the Fund’s investment objectives and reduce overall

return for the Fund's Common Shareholders.

To qualify as a REIT, the Fund is required at all times to satisfy tests

relating to, among other things, the sources of the Fund’s income, the

nature and diversification of the Fund’s assets, the ownership of the

Fund’s stock and the amounts the Fund distributes to Fund’s Common

Shareholders. Compliance with the REIT requirements may impair the

Fund’s ability to operate solely on the basis of maximizing profits. For

example, the Fund may be required to make distributions to Common

Shareholders at disadvantageous times or when the Fund does not have

funds readily available for distribution.

Compliance with REIT requirements may force the Fund to liquidate or

restructure otherwise attractive investments.

To qualify as a REIT, at the end of each calendar quarter, at least 75% of

the value of the Fund’s assets must consist of cash, cash items,

government securities and qualified real estate assets. The remainder of

the Fund’s investments in securities (other than qualified real estate

assets and government securities) generally cannot include more than

10% of the voting securities (other than securities that qualify for the

straight debt safe harbor) of any one issuer or more than 10% of the

value of the outstanding securities of more than any one issuer unless

PIMCO and such issuer jointly elect for such issuer to be treated as a

“taxable REIT subsidiary” under the Code. Debt will generally meet the

“straight debt” safe harbor if the debt is a written unconditional

promise to pay on demand or on a specified date a certain sum of

money, the debt is not convertible, directly or indirectly, into stock, and

the interest rate and the interest payment dates of the debt are not

contingent on the profits, the borrower’s discretion, or similar factors.

Additionally, no more than 5% of the value of the Fund’s assets (other

than government securities and qualified real estate assets) can consist

of the securities of any one issuer, and no more than 20% of the value

of the Fund’s assets may be represented by securities of one or more

taxable REIT subsidiaries. If the Fund fails to comply with these

requirements at the end of any calendar quarter, the Fund must dispose

of a portion of the Fund’s assets within 30 days after the end of the

calendar quarter or qualify for certain statutory relief provisions in order

to avoid losing the Fund’s REIT qualification and suffering adverse tax

consequences. In order to satisfy these requirements and maintain the

Fund’s qualification as a REIT, the Fund may be forced to liquidate

assets from the Fund’s portfolio or not make otherwise attractive

investments. These actions could have the effect of reducing the Fund’s

income and amounts available for distribution to the Fund’s Common

Shareholders.

The Fund’s Declaration of Trust does not permit any person or group to

own more than 9.8% in value or number of shares, whichever is more

restrictive, of the Fund’s outstanding Common Shares or of the Fund’s

outstanding capital stock of all classes or series, and attempts to acquire

the Fund’s Common Shares or the Fund’s capital stock of all other

classes or series in excess of these 9.8% limits would not be effective

without an exemption (prospectively or retroactively) from these limits

by the Fund’s Board of Trustees.

For the Fund to qualify as a REIT under the Code, not more than 50% of

the value of the Fund’s outstanding Common Shares may be owned,

directly or indirectly, by five or fewer individuals (including certain

entities treated as individuals for this purpose) during the last half of a

taxable year. For the purpose of assisting the Fund’s qualification as a

REIT for U.S. federal income tax purposes, among other purposes, the

Fund’s Declaration of Trust prohibits beneficial or constructive

ownership by any person or group of more than 9.8%, in value or

number of shares, whichever is more restrictive, of the outstanding

shares of the Fund’s outstanding Common Shares, or 9.8% in value or

number of shares, whichever is more restrictive, of the Fund’s

outstanding capital stock of all classes or series, which PIMCO refers to

as the “Ownership Limit.” The constructive ownership rules under the

Code and the Fund’s Declaration of Trust are complex and may cause

shares of the outstanding Common Shares owned by a group of related

persons to be deemed to be constructively owned by one person. As a

result, the acquisition of less than 9.8% of the Fund’s outstanding

Common Shares or the Fund’s capital stock by a person could cause

another person to constructively own in excess of 9.8% of the Fund’s

outstanding Common Shares or the Fund’s capital stock, respectively,

and thus violate the Ownership Limit. There can be no assurance that

the Fund’s board of trustees, as permitted in the Declaration of Trust,

will not decrease this Ownership Limit in the future. Any attempt to own

or transfer shares of the Fund’s Common Shares or capital stock in

excess of the Ownership Limit without the consent of the Fund’s board

of trustees will result in the transfer being void.

The Ownership Limit may have the effect of precluding a change in

control of the Fund by a third party, even if such change in control

would be in the best interests of the Fund’s Common Shareholders or

would result in receipt of a premium to the price of the Fund’s Common

Shares (and even if such change in control would not reasonably

jeopardize the Fund’s REIT status). The exemptions to the Ownership

Limit granted to date may limit the Fund’s Board’s power to increase the

Ownership Limit or grant further exemptions in the future.

The Fund’s Board of Trustees is authorized to revoke the Fund’s REIT

election without shareholder approval, which may cause adverse

consequences to the Fund’s shareholders.

The Fund’s Declaration of Trust authorizes the Fund’s Board of Trustees

to revoke or otherwise terminate the Fund’s REIT election, without the

approval of the Fund’s shareholders, if it determines that changes to

U.S. federal income tax laws and regulations or other considerations

mean it is no longer in the Fund’s best interests to qualify as a REIT. The

Fund’s Board of Trustees has fiduciary duties to us and the Fund’s

shareholders and could only cause such changes in the Fund’s tax

treatment if it determines in good faith that such changes are in the

Fund’s best interests and in the best interests of the Fund’s

shareholders. In this event, the Fund would become subject to

U.S. federal income tax on the Fund’s taxable income and the Fund

would no longer be required to distribute most of the Fund’s net income

to the Fund’s shareholders, which may cause a reduction in the total

return to the Fund’s shareholders.

Tax Risks of Investing in the Fund

Non-U.S. holders may be subject to U.S. federal income tax upon their

disposition of shares of the Fund’s Common Shares or upon their receipt

of certain distributions from PIMCO.

In addition to any potential withholding tax on ordinary dividends, a

non-U.S. holder (as such term is defined below under “Certain

U.S. Federal Income Tax Considerations—Taxation of U.S. Holders of the

Fund’s Common Shares”), other than a “qualified shareholder” or a

“qualified foreign pension fund,” that disposes of a “U.S. real property

interest” (“USRPI”) (which includes shares of stock of a U.S. corporation

whose assets consist principally of USRPIs), is generally subject to

U.S. federal income tax under the Foreign Investment in Real Property

Tax Act of 1980, as amended (“FIRPTA”), on the amount received from

such disposition. Such tax does not apply, however, to the disposition of

stock in a REIT that is “domestically controlled.” Generally, a REIT is

domestically controlled if less than 50% of its stock, by value, has been

owned directly or indirectly by non-U.S. persons during a continuous

five-year period ending on the date of disposition or, if shorter, during

the entire period of the REIT’s existence. The Fund cannot assure

Common Shareholders that it will qualify as a domestically controlled

REIT. If the Fund were to fail to so qualify, amounts received by a

non-U.S. holder on certain dispositions of the Fund’s Common Shares

(including a redemption) would be subject to tax under FIRPTA, unless

(i) the Fund’s Common Shares were regularly traded on an established

securities market and (ii) the non-U.S. holder did not, at any time during

a specified testing period, hold more than 10% of the Fund’s Common

Shares. See “Certain U.S. Federal Income Tax Considerations—Taxation

of Non-U.S. Holders of the Fund’s Common Shares—Sales of the Fund’s

Common Shares.”

A non-U.S. holder other than a “qualified shareholder” or a “qualified

foreign pension fund,” that receives a distribution from a REIT that is

attributable to gains from the disposition of a USRPI as described

above, including in connection with a repurchase of the Fund’s Common

Shares, is generally subject to U.S. federal income tax under FIRPTA to

the extent such distribution is attributable to gains from such

disposition, regardless of whether the difference between the fair

market value and the tax basis of the USRPI giving rise to such gains is

attributable to periods prior to or during such non-U.S. holder’s

ownership of the Fund’s Common Shares. In addition, a repurchase of

the Fund’s Common Shares, to the extent not treated as a sale or

exchange, may be subject to withholding as an ordinary dividend. See

“Certain U.S. Federal Income Tax Considerations—Taxation of

Non-U.S. Holders of the Fund’s Common Shares—Distributions,

and—Repurchases of the Fund’s Common Shares.”

PIMCO seeks to act in the best interests of the Fund as a whole and not

in consideration of the particular tax consequences to any specific

holder of the Fund’s Common Shares. Potential non-U.S. holders should

inform themselves as to the U.S. tax consequences, and the tax

consequences within the countries of their citizenship, residence,

domicile, and place of business, with respect to the purchase, ownership

and disposition of shares of the Fund’s Common Shares.

Investments outside the United States may subject the Fund to

additional taxes and could present additional complications to the

Fund’s ability to satisfy the REIT qualification requirements.

Non-U.S. investments may subject the Fund to various non-U.S. tax

liabilities, including withholding taxes. In addition, operating in

functional currencies other than the U.S. dollar and in environments in

which real estate transactions are typically structured differently than

they are in the United States or are subject to different legal rules may

present complications to the Fund’s ability to structure

non-U.S. investments in a manner that enables the Fund to satisfy the

REIT qualification requirements.

The Fund may incur tax liabilities that would reduce the Fund’s cash

available for distribution to shareholders.

Even if the Fund qualifies and maintains the Fund’s status as a REIT, the

Fund may become subject to U.S. federal income taxes and related state

and local taxes. For example, net income from the sale of properties that

are “dealer” properties sold by a REIT (a “prohibited transaction” under

the Code) will be subject to a 100% tax. The Fund may not make

sufficient distributions to avoid excise taxes applicable to REITs.

Similarly, if the Fund were to fail an income test (and did not lose the

Fund’s REIT status because such failure was due to reasonable cause

and not willful neglect) the Fund would be subject to tax on the income

that does not meet the income test requirements. To qualify as a REIT,

the Fund generally must distribute annually to the Fund’s Common

Shareholders a minimum of 90% of the Fund’s net taxable income,

determined without regard to the dividends-paid deduction and

excluding net capital gains. If the Fund does not have sufficient cash to

make distributions necessary to preserve the Fund’s REIT status for any

year or to avoid taxation, the Fund may be forced to borrow funds or

sell assets even if the market conditions at that time are not favorable

for these borrowings or sales. These options could increase the Fund’s

costs or reduce the Fund’s equity. The Fund also may decide to retain

net capital gains the Fund earns from the sale or other disposition of the

Fund’s investments and pay income tax directly on such income. In that

event, the Fund’s shareholders would be treated as if they earned that

income and paid the tax on it directly. However, shareholders that are

tax-exempt, such as charities or qualified pension plans, would have no

benefit from their deemed payment of such tax liability unless they file

U.S. federal income tax returns and thereon seek a refund of such tax.

The Fund also may be subject to state and local taxes on the Fund’s

income, gross receipts or property, including franchise, payroll, mortgage

recording and transfer taxes, either directly or at the level of the other

companies through which the Fund indirectly owns assets, such as the

Fund’s taxable REIT subsidiaries, which are subject to full U.S. federal,

state, local and foreign corporate-level income taxes. Any taxes the Fund

pays directly or indirectly will reduce the Fund’s cash available for

distribution to shareholders.

There may be current tax liability on distributions reinvested in the

Fund’s Common Shares.

If a shareholder participates in the Fund’s distribution reinvestment

plan, that shareholder will be deemed to have received, and for

U.S. federal income tax purposes will be taxed on, the amount

reinvested in shares of the Fund’s Common Shares to the extent the

amount reinvested was not a tax-free return of capital. Therefore, unless

the shareholder is a tax-exempt entity, the shareholder may be forced to

use funds from other sources to pay any tax liability on the reinvested

dividends.

Generally, ordinary dividends payable by REITs do not qualify for

reduced U.S. federal income tax rates.

Currently, the maximum tax rate applicable to qualified dividend income

payable to certain non-corporate U.S. Common Shareholders is 20%.

Dividends payable by REITs, however, generally are not eligible for the

reduced rate. Although this does not adversely affect the taxation of

REITs or dividends payable by REITs, the more favorable rates applicable

to regular corporate qualified dividends could cause certain

non-corporate investors to perceive investments in REITs to be relatively

less attractive than investments in the stocks of non-REIT corporations

that pay dividends, which could adversely affect the value of the shares

of REITs, including the Fund’s Common Shares. However, under current

law, individual taxpayers may be entitled to claim (through 2025) a

deduction in determining their taxable income of 20% of ordinary REIT

dividends (dividends other than capital gain dividends and dividends

attributable to certain qualified dividend income received by the Fund),

which temporarily reduces the effective tax rate on such dividends. See

“Certain U.S. Federal Income Tax Considerations—Taxation of

U.S. Holders of the Fund’s Common Shares—Distributions Generally.”

Shareholders are urged to consult with a tax advisor regarding the

effective tax rate with respect to REIT dividends.

The Fund may be subject to adverse legislative or regulatory tax

changes that could increase the Fund’s tax liability, reduce the Fund’s

operating flexibility and reduce the price of the Fund’s Common Shares.

In recent years, numerous legislative, judicial and administrative

changes have been made in the provisions of U.S. federal income tax

laws applicable to investments similar to an investment in shares of the

Fund’s Common Shares. Additional changes to the tax laws are likely to

continue to occur, and PIMCO cannot assure shareholders that any such

changes will not adversely affect the taxation of the Fund’s Common

Shareholders. Any such changes could have an adverse effect on an

investment in the Fund’s shares or on the market value or the resale

potential of the Fund’s assets. Shareholders are urged to consult with a

tax advisor with respect to the impact of recent legislation on your

investment in the Fund’s shares and the status of legislative, regulatory

or administrative developments and proposals and their potential effect

on an investment in the Fund’s shares. Although REITs generally receive

certain tax advantages compared to entities taxed as regular

corporations, it is possible that future legislation would result in a REIT

having fewer tax advantages, and it could become more advantageous

for a company that invests in real estate to elect to be treated for

U.S. federal income tax purposes as a corporation. As a result, the

Fund’s Declaration of Trust authorizes the Fund’s Board of Trustees to

revoke or otherwise terminate the Fund’s REIT election, without the

approval of the Fund’s Common Shareholders, if it determines that

changes to U.S. federal income tax laws and regulations or other

considerations mean it is no longer in the Fund’s best interests to qualify

as a REIT. Prospective investors should consult their own tax advisors

regarding changes in tax laws.

The failure of a mezzanine loan to qualify as a real estate asset could

adversely affect the Fund’s ability to qualify as a REIT.

PIMCO may acquire mezzanine loans, for which the United States

Internal Revenue Service (the “IRS”) has provided a safe harbor but not

rules of substantive law. Pursuant to the safe harbor, if a mezzanine

loan meets certain requirements, it will be treated by the IRS as a real

estate asset for purposes of the REIT asset tests, and interest derived

from the mezzanine loan will be treated as qualifying mortgage interest

for purposes of the REIT 75% income test. PIMCO may acquire

mezzanine loans that do not meet all of the requirements of this safe

harbor. In the event the Fund owns a mezzanine loan that does not

meet the safe harbor, the IRS could challenge such loan’s treatment as a

real estate asset for purposes of the REIT asset and income tests and, if

such a challenge were sustained, the Fund could fail to qualify as a REIT.

If the Fund’s operating partnership failed to qualify as a partnership or is

not otherwise disregarded for U.S. federal income tax purposes, the

Fund would cease to qualify as a REIT.

If the IRS were to successfully challenge the status of the Fund’s

operating partnership as a partnership or disregarded entity for

U.S. federal income tax purposes, it would be taxable as a corporation.

In the event that this occurs, it would reduce the amount of distributions

that the Fund’s operating partnership could make to the Fund. This

would also result in the Fund’s failing to qualify as a REIT and becoming

subject to a corporate-level tax on the Fund’s income, which would

substantially reduce the Fund’s cash available to pay distributions and

the yield on your investment.

Effects of Leverage [Text Block]

Effects of Leverage

The following table is furnished in response to requirements of the SEC.

It is designed to illustrate the effects of leverage through the use of

senior securities, as that term is defined under Section 18 of the 1940

Act, on Common Share total return, assuming investment portfolio total

returns (consisting of income and changes in the value of investments

held in the Fund’s portfolio) of -10%, -5%, 0%, 5% and 10%. These

assumed investment portfolio returns are hypothetical figures and are

not necessarily indicative of the investment portfolio returns expected to

be experienced by the Fund. The table below assumes the Fund’s use of

Preferred Shares representing approximately 0.28% of the Fund’s

average net assets, and, although not senior securities under the 1940

Act, the Fund’s use of reverse repurchase agreements representing

approximately 43.20% of the Fund’s average net assets during the year

ended December 31, 2023. The table below also assumes that the Fund

will pay dividends on Preferred Shares at an estimated annual rate of

12.00% for the Preferred Shares and interest on reverse repurchase

agreements at an estimated annual effective interest expense rate of

6.26% (based on market interest rates as of December 31, 2023).

Based on such estimates, the annual return that the Fund’s portfolio

must experience (net of expenses) in order to cover such costs is

1.91%.The information below does not reflect the Fund’s use of certain

other forms of economic leverage achieved through the use of other

instruments or transactions not considered to be senior securities under

the 1940 Act, such as credit default swaps or other derivative

instruments. The assumed investment portfolio returns in the table

below are hypothetical figures and are not necessarily indicative of the

investment portfolio returns expected to be experienced by the Fund.

Your actual returns may be greater or less than those appearing below.

In addition, actual borrowing expenses associated with reverse

repurchase agreements (or dollar rolls/buybacks or borrowings, if any)

used by the Fund may vary frequently and may be significantly higher or

lower than the rate used for the example below.

Assumed Portfolio Total Return (Net of Expenses)	(10.0)%	(5.0)%	0.0%	5.0%	10.0%
Common Shares Total Return	(17.09)%	(9.91)%	(2.74)%	4.43%	11.61%

Common Shares Total Return is composed of two elements-the

distributions paid by the Fund to holders of Common Shares (the

amount of which is largely determined by the net investment income of

the Fund after paying dividend payments on any Preferred Shares issued

by the Fund and expenses on any forms of leverage outstanding) and

gains or losses on the value of the securities and other instruments the

Fund owns. As required by SEC rules, the table assumes that the Fund is

more likely to suffer capital losses than to enjoy capital appreciation. For

example, to assume a total return of 0%, the Fund must assume that

the income it receives on its investments is entirely offset by losses in

the value of those investments. This table reflects hypothetical

performance of the Fund’s portfolio and not the actual performance of

the Fund’s Common Shares, the value of which is determined by market

forces and other factors.

Should the Fund elect to add additional leverage, any benefits of such

additional leverage cannot be fully achieved until the proceeds resulting

from the use of such leverage have been received by the Fund and

invested in accordance with the Fund’s investment objectives and

policies. As noted above, the Fund’s willingness to use additional

leverage, and the extent to which leverage is used at any time, will

depend on many factors, including, among other things, PIMCO’s

assessment of the yield curve environment, interest rate trends, market

conditions and other factors.

Effects of Leverage [Table Text Block]

Assumed Portfolio Total Return (Net of Expenses)	(10.0)%	(5.0)%	0.0%	5.0%	10.0%
Common Shares Total Return	(17.09)%	(9.91)%	(2.74)%	4.43%	11.61%

Return at Minus Ten [Percent]

(17.09%)

Return at Minus Five [Percent]

(9.91%)

Return at Zero [Percent]

(2.74%)

Return at Plus Five [Percent]

4.43%

Return at Plus Ten [Percent]

11.61%

Effects of Leverage, Purpose [Text Block]