================================================================================

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

(MARK ONE)

[X]    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
       SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2005

                                       OR

[_]    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
       SECURITIES EXCHANGE ACT OF 1934

COMMISSION FILE NUMBER 33-20018

                   PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

                                  IN RESPECT OF

        PRUCO LIFE OF NEW JERSEY VARIABLE CONTRACT REAL PROPERTY ACCOUNT
--------------------------------------------------------------------------------
             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

             NEW JERSEY                       22-2426091
  ---------------------------------       -----------------------------------
   (STATE OR OTHER JURISDICTION OF         (IRS EMPLOYER IDENTIFICATION NO.)
   INCORPORATION OR ORGANIZATION)


              213 WASHINGTON STREET, NEWARK, NEW JERSEY 07102-2992
              ----------------------------------------------------
               (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)

                                 (973) 802-6000
              ----------------------------------------------------
              (REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)


     INDICATE BY CHECK MARK  WHETHER THE  REGISTRANT:  (1) HAS FILED ALL REPORTS
REQUIRED TO BE FILED BY SECTION 13 OR 15(d) OF THE  SECURITIES  EXCHANGE  ACT OF
1934  DURING  THE  PRECEDING  12 MONTHS  (OR FOR SUCH  SHORTER  PERIOD  THAT THE
REGISTRANT WAS REQUIRED TO FILE SUCH REPORTS),  AND (2) HAS BEEN SUBJECT TO SUCH
FILING REQUIREMENTS FOR THE PAST 90 DAYS.                  YES [X]  NO [ ]

--------------------------------------------------------------------------------

     INDICATE BY CHECK MARK WHETHER THE REGISTRANT IS AN  ACCELERATED  FILER (AS
DEFINED IN RULE 12b-2 OF THE EXCHANGE ACT).                YES [ ]  NO [X]

--------------------------------------------------------------------------------
================================================================================

<PAGE>


                   PRUCO LIFE OF NEW JERSEY VARIABLE CONTRACT
                              REAL PROPERTY ACCOUNT
                                  (REGISTRANT)


                                      INDEX
                                      -----

                                                                            PAGE
                                                                            ----

Forward-Looking Statements ..................................................  3

PART I--FINANCIAL INFORMATION

Item 1.  Financial Statements (Unaudited)

A.  PRUCO LIFE OF NEW JERSEY VARIABLE CONTRACT REAL PROPERTY ACCOUNT

         Statement of Net Assets--June 30, 2005 and December 31, 2004 .......  4

         Statement of Operations--Six and Three Months Ended
         June 30, 2005 and 2004 .............................................  4

         Statement of Changes in Net Assets--
         Six and Three Months Ended June 30, 2005 and 2004 ..................  4

         Notes to the Financial Statements of the Real Property Account .....  5

B.  THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

         Consolidated Statements of Assets and Liabilities--
         June 30, 2005 and December 31, 2004 ................................  8

         Consolidated Statements of Operations--
         Six and Three Months Ended June 30, 2005 and 2004 ..................  9

         Consolidated Statements of Changes in Net Assets--
         Six and Three Months Ended June 30, 2005 and 2004 .................. 10

         Consolidated Statements of Cash Flows--
         Six and Three Months Ended June 30, 2005 and 2004 .................. 11

         Consolidated Schedules of Investments--
         June 30, 2005 and December 31, 2004 ................................ 12

         Notes to the Financial Statements of the Partnership ............... 14

Item 2.  Management's Discussion and Analysis of Financial Condition
         and Results of Operations .......................................... 16

Item 3.  Quantitative and Qualitative Disclosures About Market Risks ........ 23

Item 4.  Controls and Procedures ............................................ 23

PART II -- OTHER INFORMATION

Item 4.  Submission of Matters to a Vote of Security Holders ................ 24

Item 6.  Exhibits ........................................................... 24

Signature ................................................................... 25

                                       2
<PAGE>


FORWARD-LOOKING STATEMENTS

Some of the statements included in this Quarterly Report on Form 10-Q, including
but not limited to those in  Management's  Discussion  and Analysis of Financial
Condition and Results of Operations,  may constitute  forward-looking statements
within the meaning of the U.S. Private Securities Litigation Reform Act of 1995.
Words  such  as  "expects,"  "believes,"   "anticipates,"  "includes,"  "plans,"
"assumes,"  "estimates,"  "projects,"  "intends,"  "should,"  "will," "shall" or
variations  of such  words are  generally  part of  forward-looking  statements.
Forward-looking  statements are made based on management's  current expectations
and beliefs  concerning  future  developments  and their potential  effects upon
Pruco Life  Insurance  Company of New Jersey ("the  Company") or the  Prudential
Variable Contract Real Property Account (the "Real Property Account"). There can
be no  assurance  that future  developments  affecting  the Company and the Real
Property Account will be those anticipated by management.  These forward-looking
statements  are not a guarantee  of future  performance  and  involve  risks and
uncertainties,  and there are certain  important factors that could cause actual
results to differ, possibly materially, from expectations or estimates reflected
in  such  forward-looking  statements,  including,  among  others:  (1)  general
economic,  market  and  political  conditions,   including  the  performance  of
financial  markets and interest  rate  fluctuations  and economic  conditions in
local markets in which the properties in the Real Property  Account are located;
(2) domestic or international military or terrorist activities or conflicts; (3)
volatility in the  securities  markets;  (4)  fluctuations  in foreign  currency
exchange  rates and foreign  securities  markets;  (5) regulatory or legislative
changes,  including  changes in tax law; (6) changes in  statutory or U.S.  GAAP
accounting  principles,  practices or policies;  (7) differences  between actual
experience regarding mortality,  morbidity,  persistency,  surrender experience,
interest  rates,  or market  returns and the  assumptions  we use in pricing our
products,  establishing  liabilities  and  reserves or for other  purposes;  (8)
reestimates of our reserves for future policy  benefits and claims;  (9) changes
in our assumptions  related to deferred policy  acquisition  costs;  (10) events
resulting in catastrophic  loss of life;  (11)  investment  losses and defaults;
(12) changes in our  claims-paying  or credit ratings;  (13)  competition in our
product lines and for personnel;  (14) adverse  determinations  in litigation or
regulatory  matters and our  exposure to  contingent  liabilities;  and (15) the
effects of acquisitions,  divestitures and  restructurings,  including  possible
difficulties in integrating and realizing the projected results of acquisitions.
The  Company  and the Real  Property  Account  do not  intend,  and are under no
obligation, to update any particular  forward-looking statement included in this
document.

                                       3
<PAGE>


                             FINANCIAL STATEMENTS OF
        PRUCO LIFE OF NEW JERSEY VARIABLE CONTRACT REAL PROPERTY ACCOUNT

<TABLE>
<CAPTION>
STATEMENTS OF NET ASSETS
June 30, 2005 and December 31, 2004             JUNE 30, 2005
                                                 (UNAUDITED)         DECEMBER 31, 2004
                                                -------------        -----------------
<S>                                              <C>                    <C>                    <C>                    <C>
ASSETS
Investment in The Prudential Variable
  Contract Real Property Partnership .....       $8,499,967             $8,082,948
                                                 ----------             ----------
Net Assets ...............................       $8,499,967             $8,082,948
                                                 ==========             ==========
NET ASSETS, representing:
Equity of contract owners ................       $6,348,617             $6,042,260
Equity of Pruco Life Insurance Company
  of New Jersey ..........................        2,151,350              2,040,688
                                                 ----------             ----------
                                                 $8,499,967             $8,082,948
                                                 ==========             ==========
Units outstanding ........................        3,448,343              3,438,311
                                                 ==========             ==========
Portfolio shares held ....................          309,093                309,093
Portfolio net asset value per share ......       $    27.50             $    26.15

STATEMENTS OF OPERATIONS
For the six and three months ended
  June 30, 2005 and 2004                     1/1/2005-6/30/2005     1/1/2004-6/30/2004     4/1/2005-6/30/2005     4/1/2004-6/30/2004
                                                 (UNAUDITED)            (UNAUDITED)            (UNAUDITED)            (UNAUDITED)
                                             ------------------     ------------------     ------------------     ------------------
INVESTMENT INCOME
Net investment income from
  Partnership operations .................       $  183,117             $  158,358             $   97,069             $   75,333
                                                 ----------             ----------             ----------             ----------
EXPENSES
Charges to contract owners for
  assuming mortality risk and expense
  risk and for administration ............           17,540                 16,760                  8,948                  8,474
                                                 ----------             ----------             ----------             ----------
NET INVESTMENT INCOME ....................          165,577                141,598                 88,121                 66,859
                                                 ----------             ----------             ----------             ----------
NET REALIZED AND UNREALIZED GAIN
  (LOSS) ON INVESTMENTS
Net change in unrealized gain (loss)
  on investments in Partnership ..........          196,995                127,252                 78,424                151,489
Net realized gain (loss) on sale
  of investments in Partnership ..........           36,908                      0                 45,489                      0
                                                 ----------             ----------             ----------             ----------
NET GAIN (LOSS) ON INVESTMENTS ...........          233,903                127,252                123,913                151,489
                                                 ----------             ----------             ----------             ----------
NET INCREASE (DECREASE) IN NET ASSETS
  RESULTING FROM OPERATIONS ..............       $  399,480             $  268,850             $  212,034             $  218,348
                                                 ==========             ==========             ==========             ==========
STATEMENTS OF CHANGES IN NET ASSETS
For the six and three months ended
  June 30, 2005 and 2004                     1/1/2005-6/30/2005     1/1/2004-6/30/2004     4/1/2005-6/30/2005     4/1/2004-6/30/2004
                                                 (UNAUDITED)            (UNAUDITED)            (UNAUDITED)            (UNAUDITED)
                                             ------------------     ------------------     ------------------     ------------------
OPERATIONS
Net investment income ....................       $  165,577             $  141,598             $   88,121             $   66,859
Net change in unrealized gain (loss)
  on investments in Partnership ..........          196,995                127,252                 78,424                151,489
Net realized gain (loss) on sale
  of investments in Partnership ..........           36,908                      0                 45,489                      0
                                                 ----------             ----------             ----------             ----------
NET INCREASE (DECREASE) IN NET ASSETS
  RESULTING FROM OPERATIONS ..............          399,480                268,850                212,034                218,348
                                                 ----------             ----------             ----------             ----------
CAPITAL TRANSACTIONS
Net contributions (withdrawals) by
  contract owners ........................           12,291                (45,682)                (2,734)               (51,131)
Net contributions (withdrawals) by
  Pruco Life Insurance Company
  of New Jersey ..........................            5,248                 62,442                 11,681                 59,606
                                                 ----------             ----------             ----------             ----------
NET INCREASE (DECREASE)
  IN NET ASSETS RESULTING FROM
  CAPITAL TRANSACTIONS ...................           17,539                 16,760                  8,947                  8,475
                                                 ----------             ----------             ----------             ----------
TOTAL INCREASE (DECREASE)
  IN NET ASSETS ..........................          417,019                285,610                220,981                226,823
NET ASSETS
Beginning of period ......................        8,082,948              7,846,237              8,278,986              7,905,024
                                                 ----------             ----------             ----------             ----------
End of period ............................       $8,499,967             $8,131,847             $8,499,967             $8,131,847
                                                 ==========             ==========             ==========             ==========
</TABLE>

   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

                                       4
<PAGE>


                      NOTES TO THE FINANCIAL STATEMENTS OF
        PRUCO LIFE OF NEW JERSEY VARIABLE CONTRACT REAL PROPERTY ACCOUNT
                                  JUNE 30, 2005
                                   (UNAUDITED)

NOTE 1: GENERAL

Pruco Life of New Jersey Variable Contract Real Property Account ("Account") was
established on October 30, 1987 by resolution of the Board of Directors of Pruco
Life Insurance  Company of New Jersey ("Pruco Life of New Jersey"),  an indirect
wholly-owned   subsidiary  of  The  Prudential   Insurance  Company  of  America
("Prudential"),  a wholly-owned subsidiary of Prudential Financial, Inc. ("PFI")
as a separate  investment  account  pursuant to New Jersey law and is registered
under the Securities Act of 1933. The assets of the Account are segregated  from
Pruco Life of New Jersey's  other  assets.  The Account is used to fund benefits
under certain variable life insurance and variable  annuity  contracts issued by
Pruco Life of New Jersey. These products are Appreciable Life ("VAL"),  Variable
Life ("VLI"), Discovery Plus ("SPVA"), and Discovery Life Plus ("SPVL").

The assets of the Account are invested in The Prudential  Variable Contract Real
Property  Partnership  (the  "Partnership").  The  Partnership is the investment
vehicle for assets allocated to the real estate  investment option under certain
variable life insurance and annuity contracts. The Account, along with the Pruco
Life  Variable  Contract  Real  Property  Account  and The  Prudential  Variable
Contract Real Property Account, are the sole investors in the Partnership. These
financial statements should be read in conjunction with the financial statements
of the Partnership.

The  Partnership  has a policy of investing at least 65% of its assets in direct
ownership interests in income-producing  real estate and participating  mortgage
loans.

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. BASIS OF ACCOUNTING

The accompanying financial statements are prepared in conformity with accounting
principles  generally  accepted in the United  States of America  ("GAAP").  The
preparation  of the  financial  statements  in  conformity  with  GAAP  requires
management to make estimates and  assumptions  that affect the reported  amounts
and disclosures. Actual results could differ from those estimates.

The interim  financial data as of June 30, 2005 and for the six and three months
ended  June  30,  2005  and  2004  is  unaudited;  however,  in the  opinion  of
management, the interim data includes all adjustments, consisting only of normal
recurring  adjustments,  necessary  for a fair  statement of the results for the
interim periods.

B. INVESTMENT IN PARTNERSHIP INTEREST

The  investment  in the  Partnership  is  based on the  Account's  proportionate
interest of the  Partnership's  market value.  At June 30, 2005 and December 31,
2004 the Account's interest in the Partnership was 4.3% or 309,093 shares.

C. INCOME RECOGNITION

Net  investment  income  and  realized  and  unrealized  gains  and  losses  are
recognized daily. Amounts are based upon the Account's proportionate interest in
the Partnership.

D. EQUITY OF PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Pruco Life of New Jersey  maintains  a position  in the  Account  for  liquidity
purposes,   including  unit  purchases  and   redemptions,   Partnership   share
transactions,  and expense  processing.  The position  does not affect  contract
owners' accounts or the related unit values.

                                       5
<PAGE>


NOTE 3: CHARGES AND EXPENSES

A. MORTALITY RISK AND EXPENSE RISK CHARGES

Mortality risk and expense risk charges are determined  daily using an effective
annual  rate  of  0.6%,   0.35%,  0.9%  and  0.9%  for  VAL,  VLI,  SPVA,  SPVL,
respectively. Mortality risk is that life insurance contract owners may not live
as long as estimated or  annuitants  may live longer than  estimated and expense
risk is that the cost of  issuing  and  administering  the  policies  may exceed
related charges by Pruco Life of New Jersey. The mortality risk and expense risk
charges are assessed through reduction in unit values.

B. ADMINISTRATIVE CHARGES

Administrative  charges are determined  daily using an effective  annual rate of
0.35%  applied  daily  against  the net assets  representing  equity of contract
owners held in each subaccount for SPVA and SPVL. Administrative charges include
costs  associated  with  issuing  the  contract,  establishing  and  maintaining
records, and providing reports to contract owners. The administrative  charge is
assessed through reduction in unit values.

C. COST OF INSURANCE AND OTHER RELATED CHARGES

Contract owner  contributions  are subject to certain  deductions prior to being
invested in the Account.  The  deductions  for VAL and VLI are (1) state premium
taxes;  (2) sales  charges,  not to exceed 5% for VAL and 9% for VLI,  which are
deducted in order to compensate Pruco Life of New Jersey for the cost of selling
the contract and (3)  transaction  costs,  applicable to VAL, which are deducted
from each premium  payment to cover premium  collection  and  processing  costs.
Contracts are also subject to monthly charges for the costs of administering the
contract to compensate Pruco Life of New Jersey for the guaranteed minimum death
benefit risk. These charges are assessed through the redemption of units.

D. DEFERRED SALES CHARGE

A deferred  sales charge is imposed upon  surrenders  of certain  variable  life
insurance  contracts to compensate  Pruco Life of New Jersey for sales and other
marketing expenses.  The amount of any sales charge will depend on the number of
years that have elapsed  since the contract was issued,  but will not exceed 45%
of one scheduled  annual premium for VAL and 9% of the initial  premium  payment
for SPVL.  No sales charge will be imposed after the sixth and tenth year of the
contract  for SPVL and VAL,  respectively.  No sales  charge  will be imposed on
death  benefits.  A deferred sales charge is assessed  through the redemption of
units.

E. PARTIAL WITHDRAWAL CHARGE

A charge is imposed by Pruco  Life of New Jersey on partial  withdrawals  of the
cash surrender  value for VAL. A charge equal to the lesser of $15 or 2% will be
made in connection with each partial withdrawal of the cash surrender value of a
contract. A charge is assessed through the redemption of units.

NOTE 4: TAXES

Pruco Life of New Jersey is taxed as a "life  insurance  company"  as defined by
the Internal  Revenue Code. The results of operations of the Account form a part
of PFI's consolidated  federal tax return. Under current federal law, no federal
income  taxes are payable by the  Account.  As such,  no  provision  for the tax
liability has been recorded in these financial statements.

                                       6
<PAGE>


NOTE 5: NET WITHDRAWALS BY CONTRACT OWNERS

Net contract owner  withdrawals for the real estate  investment  option in Pruco
Life of New Jersey's  variable  insurance and variable  annuity products for the
six and three months ended June 30, 2005 and 2004, were as follows:


                     SIX MONTHS ENDED                    THREE MONTHS ENDED
                         JUNE 30,                             JUNE 30,
                 2005               2004              2005               2004
               --------           --------          --------           --------
                       (UNAUDITED)                          (UNAUDITED)
VAL            $(21,437)          $ 23,177          $  1,067           $ 33,942
VLI              23,779             16,333             1,675             17,197
SPVA            (15,000)                 0                 0                  0
SPVL                367              6,172                (8)                (8)
               --------           --------          --------           --------
TOTAL          $(12,291)          $ 45,682          $  2,734           $ 51,131
               ========           ========          ========           ========

NOTE 6: PARTNERSHIP DISTRIBUTIONS

As of June 30, 2005, the Partnership had made no current year distributions. For
the year ended  December 31, 2004,  the  Partnership  made  distributions  of $6
million.  The Pruco Life of New Jersey Real  Property  Account's  share of these
distributions was $0.2 million.

NOTE 7: UNIT INFORMATION

Outstanding units and unit values at June 30, 2005 and December 31, 2004 were as
follows:

                                    JUNE 30, 2005
                                     (UNAUDITED)               DECEMBER 31, 2004
                                 ------------------           ------------------
UNITS OUTSTANDING:                    3,448,343                    3,438,311
UNIT VALUE:                      2.18064 to 2.57706           2.08645 to 2.45484

NOTE 8: FINANCIAL HIGHLIGHTS

The range of total return for the six months ended June 30, 2005 and 2004 was as
follows:


                                                 SIX MONTHS ENDED
                                                     JUNE 30,
                                        2005                         2004
                                   --------------               --------------
                                                    (UNAUDITED)

TOTAL RETURN                       4.51% to 4.98%               3.00% to 3.46%


                                       7
<PAGE>


           THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

                CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
                                                                                JUNE 30, 2005
                                                                                 (UNAUDITED)    DECEMBER 31, 2004
                                                                                 ------------   -----------------
<S>                                                                              <C>              <C>
ASSETS
REAL ESTATE INVESTMENTS -- At estimated market value:
    Real estate and improvements
       (cost: 6/30/2005 -- $208,138,279; 12/31/2004 -- $224,584,885) .........   $197,921,554     $203,246,069
    Real estate partnership (cost: 6/30/2005 -- $11,409,327;
       12/31/2004 -- $11,286,826) ............................................     11,286,962       12,126,566
    Mortgage and other loans receivable (cost: 6/30/2005 -- $2,644,837;
       12/31/2004 -- $1,332,060) .............................................      2,644,837        1,332,060
                                                                                 ------------     ------------
         Total real estate investments .......................................    211,853,353      216,704,695
CASH AND CASH EQUIVALENTS ....................................................     32,846,045       17,557,182
OTHER ASSETS (net of allowance for uncollectible accounts:
       06/30/2005 -- $61,123; 12/31/2004 -- $41,300) .........................      4,368,934        6,313,734
                                                                                 ------------     ------------
         Total assets ........................................................   $249,068,332     $240,575,611
                                                                                 ============     ============

LIABILITIES
MORTGAGE LOANS PAYABLE .......................................................     43,457,345       43,773,767
ACCOUNTS PAYABLE AND ACCRUED EXPENSES ........................................      3,042,130        3,096,006
DUE TO AFFILIATES ............................................................        704,905          721,419
OTHER LIABILITIES ............................................................        652,202          622,900
MINORITY INTEREST ............................................................      4,855,201        5,638,458
                                                                                 ------------     ------------
         Total liabilities ...................................................     52,711,783       53,852,550
                                                                                 ------------     ------------
COMMITMENTS AND CONTINGENCIES
PARTNERS' EQUITY .............................................................    196,356,549      186,723,061
                                                                                 ------------     ------------
         Total liabilities and partners' equity ..............................   $249,068,332     $240,575,611
                                                                                 ============     ============
NUMBER OF SHARES OUTSTANDING AT END OF PERIOD ................................      7,140,308        7,140,308
                                                                                 ============     ============
SHARE VALUE AT END OF PERIOD .................................................         $27.50           $26.15
                                                                                 ============     ============
</TABLE>

                  THE ACCOMPANYING NOTES ARE AN INTEGRAL PART
                  OF THESE CONSOLIDATED FINANCIAL STATEMENTS.

                                       8
<PAGE>


           THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                       SIX MONTHS ENDED                  THREE MONTHS ENDED
                                                                           JUNE 30,                           JUNE 30,
                                                                ------------      ------------     ------------      ------------
                                                                    2005              2004             2005              2004
                                                                ------------      ------------     ------------      ------------
<S>                                                             <C>               <C>              <C>               <C>
INVESTMENT INCOME:
  Revenue from real estate and improvements ...............     $ 13,741,981      $ 13,304,134     $  7,002,315      $  6,819,620
  Equity in income of real estate partnership .............          226,483           266,681          103,733           100,794
  Interest and equity income on mortgage loans
    receivable and other loans receivable .................          120,766            79,220           61,596            20,094
  Income from other real estate investments ...............               --           142,901               --           111,257
  Interest on short-term investments ......................          267,024            63,579          167,802            20,401
                                                                ------------      ------------     ------------      ------------
      Total investment income .............................       14,356,254        13,856,515        7,335,446         7,072,166
                                                                ------------      ------------     ------------      ------------
INVESTMENT EXPENSES:
  Operating ...............................................        3,954,557         3,525,123        2,012,608         1,863,869
  Investment management fee ...............................        1,370,266         1,283,932          696,729           648,231
  Real estate taxes .......................................        1,165,102         1,461,055          514,907           739,021
  Administrative ..........................................        2,450,946         2,583,490        1,273,210         1,366,826
  Interest expense ........................................        1,160,397         1,243,290          574,373           648,215
  Minority interest .......................................           24,820            93,576           21,247            62,019
                                                                ------------      ------------     ------------      ------------
      Total investment expenses ...........................       10,126,088        10,190,466        5,093,074         5,328,181
                                                                ------------      ------------     ------------      ------------
NET INVESTMENT INCOME .....................................        4,230,166         3,666,049        2,242,372         1,743,985
                                                                ------------      ------------     ------------      ------------
REALIZED AND UNREALIZED GAIN (LOSS)
  ON REAL ESTATE INVESTMENTS:
  Net proceeds from real estate investments sold ..........       15,409,350                --       10,859,247                --
    Less: Cost of real estate investments sold ............       18,943,989                --       14,842,211                --
          Realization of prior periods' unrealized gain
          (loss) on real estate investments sold ..........       (4,387,234)               --       (5,033,797)               --
                                                                ------------      ------------     ------------      ------------
  Net gain (loss) realized on real estate
    investments sold ......................................          852,595                --        1,050,833                --
                                                                ------------      ------------     ------------      ------------
  Change in unrealized gain (loss) on
    real estate investments ...............................        5,772,750         3,533,083        2,672,323         3,721,120
  Less: Minority interest in unrealized gain
    (loss) on real estate investments .....................        1,222,023           587,146          860,674           214,083
                                                                ------------      ------------     ------------      ------------
  Net unrealized gain (loss) on
    real estate investments ...............................        4,550,727         2,945,937        1,811,649         3,507,037
                                                                ------------      ------------     ------------      ------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
  ON REAL ESTATE INVESTMENTS ..............................        5,403,322         2,945,937        2,862,482         3,507,037
                                                                ------------      ------------     ------------      ------------
INCREASE (DECREASE) IN NET ASSETS
  RESULTING FROM OPERATIONS ...............................     $  9,633,488      $  6,611,986     $  5,104,854      $  5,251,022
                                                                ============      ============     ============      ============
</TABLE>

                   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART
                  OF THESE CONSOLIDATED FINANCIAL STATEMENTS.

                                       9
<PAGE>


           THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

                CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                            SIX MONTHS ENDED JUNE 30,
                                                                              2005             2004
                                                                          ------------     ------------
<S>                                                                       <C>              <C>
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS:
    Net investment income ...........................................     $  4,230,166     $  3,666,049
    Net gain (loss) realized on real estate investments sold ........          852,595               --
    Net unrealized gain (loss) from real estate investments .........        4,550,727        2,945,937
                                                                          ------------     ------------
      Increase (decrease) in net assets resulting from operations ...        9,633,488        6,611,986
                                                                          ------------     ------------
NET ASSETS--Beginning of period .....................................      186,723,061      181,643,061
                                                                          ------------     ------------
NET ASSETS--End of period ...........................................     $196,356,549     $188,255,047
                                                                          ============     ============
</TABLE>

                   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART
                  OF THESE CONSOLIDATED FINANCIAL STATEMENTS.

                                       10
<PAGE>


           THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                             SIX MONTHS        SIX MONTHS
                                                                                ENDED             ENDED
                                                                            JUNE 30, 2005     JUNE 30, 2004
                                                                            -------------     -------------
<S>                                                                          <C>               <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net increase (decrease) in net assets resulting from operations ......     $  9,633,488      $  6,611,986
  Adjustments to reconcile net increase (decrease) in net assets
    to net cash flows from operating activities:
      Net realized and unrealized gain (loss) on investments ...........       (5,403,322)       (2,945,937)
      Equity in income of real estate partnership in excess
        of distributions ...............................................         (122,501)          (62,493)
      Minority interest from operating activities ......................           24,820            93,576
      Bad debt expense .................................................           58,590           217,271
      (Increase) Decrease in accrued interest included in other
        real estate investments ........................................               --          (142,901)
      (Increase) Decrease in accrued interest included in mortgage
        and other loans receivable .....................................         (120,765)          (28,220)
      Increase) Decrease in:
        Other assets ...................................................        1,886,210             6,033
      Increase (Decrease) in:
        Accounts payable and accrued expenses ..........................          (53,876)          870,130
        Due to affiliates ..............................................          (16,514)         (246,293)
        Other liabilities ..............................................           29,302            (6,711)
                                                                             ------------      ------------
  Net cash flows from operating activities .............................        5,915,432         4,366,441
                                                                             ------------      ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Net proceeds from real estate investments sold .......................       15,409,351                --
  Additions to real estate and improvements ............................       (2,497,386)       (5,301,575)
  Contribution to real estate partnership ..............................               --          (245,026)
  Origination of mortgage and other loans receivable ...................       (1,192,012)       (4,670,531)
                                                                             ------------      ------------
  Net cash flows from (used in) investing activities ...................       11,719,953       (10,217,132)
                                                                             ------------      ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Principal payments on mortgage loan payable ..........................         (316,422)         (352,972)
  Contributions from minority interest partners ........................          220,009                --
  Distributions to minority interest partners ..........................       (2,250,109)          (34,199)
                                                                             ------------      ------------
  Net cash flows used in financing activities ..........................       (2,346,522)         (387,171)
                                                                             ------------      ------------

  NET CHANGE IN CASH AND CASH EQUIVALENTS ..............................       15,288,863        (6,237,862)

  CASH AND CASH EQUIVALENTS--Beginning of period .......................       17,557,182        18,901,814
                                                                             ------------      ------------

  CASH AND CASH EQUIVALENTS--End of period .............................     $ 32,846,045      $ 12,663,952
                                                                             ============      ============

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
  Cash paid for the six months ended for interest ......................     $  1,221,862      $  1,254,833
                                                                             ============      ============
</TABLE>

                   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART
                  OF THESE CONSOLIDATED FINANCIAL STATEMENTS.

                                       11
<PAGE>


           THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

                      CONSOLIDATED SCHEDULES OF INVESTMENTS

<TABLE>
<CAPTION>
                                                              TOTAL
                                                             RENTABLE
                                                            SQUARE FEET            JUNE 30, 2005
                                                              UNLESS                (UNAUDITED)                DECEMBER 31, 2004
                                                             OTHERWISE        -----------------------       ------------------------
PROPERTY                                                     INDICATED                    ESTIMATED                     ESTIMATED
NAME             OWNERSHIP                  CITY, STATE     (UNAUDITED)       COST       MARKET VALUE       COST       MARKET VALUE
--------         ---------                  -----------     -----------       ----       ------------       ----       ------------
<C>                <C>                    <C>                 <C>        <C>            <C>            <C>             <C>
REAL ESTATE INVESTMENTS

OFFICES
750 Warrenville    WO                         Lisle, IL        103,193   $ 23,173,036   $  9,699,984   $  23,173,036   $  10,098,838
Oakbrook Terrace   WO                       Oakbrook, IL       123,734             --             --      14,833,796       9,698,734
Summit at Cornell  WO                       Beaverton, OR      72,109      11,956,630      9,612,226      11,934,209       9,644,005
  Oaks
Westpark           WO                       Brentwood, TN      97,199      10,756,861     11,306,551      10,708,970      11,151,327
Financial Plaza    WO                       Brentwood, TN      95,768      12,333,151     11,100,042      12,333,151      10,966,233

------------------------------------------------------------------------------------------------------------------------------------
                          Offices % as of 6/30/05                21%       58,219,678     41,718,803      72,983,162      51,559,137
APARTMENTS
Brookwood          WO                        Atlanta, GA      240 Units    17,988,342     17,352,820      17,344,994      16,616,914
  Apartments
Dunhill Trace      WO                        Raleigh, NC      250 Units    16,144,297     19,051,404      16,083,715      18,000,660
  Apartments
Riverbend          CJV                    Jacksonville, FL    458 Units    20,060,708     23,100,000      20,015,959      22,600,000
  Apartments
SIMA Apartments    CJV                     Gresham/Salem,     201 Units     7,918,776      9,800,000      12,004,323      13,900,000
                                                 OR

------------------------------------------------------------------------------------------------------------------------------------
                          Apartments % as of 6/30/05             35%       62,112,123     69,304,224      65,448,991      71,117,574
RETAIL
King's Market       WO                      Rosewell, GA       314,358     35,207,624     23,025,411      33,864,392      21,765,286
Hampton Towne       WO                       Hampton, VA       174,540     18,031,495     22,200,000      18,031,495      21,000,000
  Center
White Marlin Mall   CJV                    Ocean City, MD      186,016     15,241,182     20,900,000      15,229,878      19,300,000
Kansas City         EJV                     Kansas City,       487,660     11,409,227     11,286,862      11,286,726      12,126,466
  Portfolio                                    KS; MO

------------------------------------------------------------------------------------------------------------------------------------
                          Retail % as of 6/30/05                 40%       79,889,528     77,412,273      78,412,491      74,191,752
INDUSTRIAL
Smith Road          WO                       Aurora, CO        277,930     10,765,912     11,273,116      10,692,625      10,204,072

------------------------------------------------------------------------------------------------------------------------------------
                          Industrial % as of 6/30/05             6%        10,765,912     11,273,116      10,692,625      10,204,072
HOTEL
Portland Crown      CJV                     Lake Oswego,      161 Rooms     8,560,265      9,500,000       8,334,342       8,300,000
  Plaza                                          OR

------------------------------------------------------------------------------------------------------------------------------------
                          Hotel % as of 6/30/05                  5%         8,560,265      9,500,000       8,334,342       8,300,000
LAND
Gateway Village     EJV                   Blue Springs, MO                        100            100             100             100

------------------------------------------------------------------------------------------------------------------------------------
                          Land % as of 6/30/05                   0%               100            100             100             100
MORTGAGE AND OTHER LOANS RECEIVABLE
Englar K-Mart       MD                     Westminster, MD                  2,644,837      2,644,837       1,332,060       1,332,060

------------------------------------------------------------------------------------------------------------------------------------
                          Mortgage and Other Loans
                          Receivable% as of 6/30/05              1%         2,644,837      2,644,837       1,332,060       1,332,060

TOTAL REAL ESTATE INVESTMENTS AS A PERCENTAGE OF
NET ASSETS AS OF 6/30/05                                        108%     $222,192,443   $211,853,353    $237,203,771    $216,704,695
                                                                ===      ============   ============    ============    ============
</TABLE>

 WO -- Wholly Owned Investment
CJV -- Consolidated Joint Venture
EJV -- Joint Venture Investment accounted for under the equity method
 MD -- Mezzanine Debt

                   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART
                  OF THESE CONSOLIDATED FINANCIAL STATEMENTS.

                                       12
<PAGE>


           THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

                      CONSOLIDATED SCHEDULES OF INVESTMENTS

<TABLE>
<CAPTION>
                                                                            JUNE 30, 2005
                                                                             (UNAUDITED)                DECEMBER 31, 2004
                                                                     --------------------------    ---------------------------
                                                          FACE                       ESTIMATED                      ESTIMATED
                                                         AMOUNT         COST       MARKET VALUE       COST        MARKET VALUE
                                                      -----------    -----------   ------------    -----------    ------------
<S>                                                   <C>            <C>            <C>            <C>             <C>
CASH AND CASH EQUIVALENTS--
PERCENTAGE OF NET ASSETS                                                                   16.7%                           9.4%
Federal Home Loan Bank, 6.4500%, Jan. 3, 2005 ....    $19,475,000             --             --    $19,455,135     $19,455,135
Federal Home Loan Banks, 2.6870%, July 1, 2005 ...    $16,953,000    $16,951,752    $16,951,752             --              --
Federal Home Loan Mortgage Company, 3.0500%,
  July 1, 2005 ...................................     15,000,000     14,961,250     14,961,250             --              --
                                                      -----------    -----------    -----------    -----------     -----------
TOTAL CASH EQUIVALENTS ...........................     31,953,000     31,913,002     31,913,002     19,455,135      19,455,135
CASH .............................................        933,043        933,043        933,043     (1,897,953)     (1,897,953)
                                                      -----------    -----------    -----------    -----------     -----------
TOTAL CASH AND CASH EQUIVALENTS ..................    $32,886,043    $32,846,045    $32,846,045    $17,557,182     $17,557,182
                                                      ===========    ===========    ===========    ===========     ===========
</TABLE>

                   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART
                  OF THESE CONSOLIDATED FINANCIAL STATEMENTS.

                                       13
<PAGE>


                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS OF

            THEPRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

                             JUNE 30, 2005 AND 2004

                                   (UNAUDITED)

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The  accompanying  unaudited  financial  statements  included  herein  have been
prepared  in  accordance  with the  requirements  of Form  10-Q  and  accounting
principles  generally  accepted  in the  United  States of America  for  interim
financial information. In the opinion of management, all adjustments (consisting
only of normal recurring adjustments)  considered necessary for a fair statement
have been included. Operating results for the six months ended June 30, 2005 are
not  necessarily  indicative  of the results  that may be expected  for the year
ended  December  31,  2005.  For  further  information,  refer to the  financial
statements and notes thereto  included in each  partner's  Annual Report on Form
10-K for the Year Ended December 31, 2004.

Real estate investments are reported at their estimated fair market values.

FASB Interpretation No. 46,  "Consolidation of Variable Interest Entities" ("FIN
46"),  was issued in January  2003.  In  December  2003,  FASB  issued a revised
interpretation  of FIN 46 ("FIN 46-R"),  that supersedes FIN 46. FIN 46-R defers
the effective  date for applying the  provisions  of FIN 46 for those  companies
currently  accounting for their  investments in accordance  with the AICPA Audit
and Accounting Guide, "Audits of Investment  Companies" (the "Audit Guide"). The
FASB is currently  considering  modifying  FIN 46-R to provide an exception  for
companies  that apply the Audit Guide.  The  Prudential  Variable  Contract Real
Property  Partnership (the  "Partnership")  is awaiting the final  determination
from the FASB in order to evaluate the extent in which,  if any, its investments
may need to be consolidated as a result of this FIN 46-R.

NOTE 2: RELATED PARTY TRANSACTIONS

Pursuant to an investment management agreement, Prudential Investment Management
("PIM") charges the Partnership a daily  investment  management fee at an annual
rate of 1.25% of the average daily gross asset valuation of the Partnership. For
the six months ended June 30, 2005 and 2004 investment  management fees incurred
by the Partnership were $1,370,266 and $1,283,932, respectively.

The Partnership also reimburses PIM for certain administrative services rendered
by PIM.  The amounts  incurred  for the six months  ended June 30, 2005 and 2004
were  $53,907  and  $73,815,   respectively,  and  are  classified  as  part  of
administrative expense in the Consolidated Statements of Operations.

NOTE 3: COMMITMENTS AND CONTINGENCIES

The  Partnership is subject to various legal  proceedings  and claims arising in
the  ordinary  course of  business.  These  matters  are  generally  covered  by
insurance.   In  the  opinion  of  Prudential   Insurance   Company  of  America
("Prudential")  management, the outcome of such matters will not have a material
effect on the Partnership.

As of June 30, 2005, the Partnership had the following  outstanding  commitments
to purchase real estate or fund additional  expenditures on previously  acquired
properties and loan take-out agreements:


                                               COMMITMENTS
                     PROPERTY TYPE               (000'S)
                    --------------            -------------
                      Apartments                 $20,405
                        Retail                    15,344
                         Other                     1,550
                                                 -------
                         Total                   $37,299
                                                 -------

                                       14
<PAGE>


                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS OF

            THEPRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

                             JUNE 30, 2005 AND 2004

                                   (UNAUDITED)

NOTE 3: COMMITMENTS AND CONTINGENCIES (CONTINUED)

Certain purchases of real estate are contingent on a developer building the real
estate according to plans and specifications  outlined in the pre-sale agreement
or the property achieving a certain level of leasing. Once those conditions have
been met, it is  anticipated  that funding  will be provided by  operating  cash
flow,  real  estate  investment  sales,   existing   portfolio-level  cash,  and
financings or third party debt.

NOTE 4: FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
                                                                         FOR THE SIX MONTHS ENDED JUNE 30,
                                                               ------------------------------------------------------
                                                                2005        2004        2003        2002        2001
                                                               ------      ------      ------      ------      ------
<S>                                                            <C>         <C>         <C>         <C>         <C>
PER SHARE(UNIT) OPERATING PERFORMANCE:
Net Asset Value, beginning of period ......................    $26.15      $24.66      $24.11      $23.82      $22.74
                                                               ------      ------      ------      ------      ------
INCOME FROM INVESTMENT OPERATIONS:
Investment income, before management fee ..................      0.78        0.67        0.79        0.83        0.82
Management fee ............................................     (0.19)      (0.17)      (0.16)      (0.15)      (0.15)
Net realized and unrealized gain (loss) on investments ....      0.76        0.39       (0.57)      (0.87)       0.36
                                                               ------      ------      ------      ------      ------
   Net Increase in Net Assets Resulting from Operations ...      1.35        0.89        0.06       (0.19)       1.03
                                                               ------      ------      ------      ------      ------
NET ASSET VALUE, END OF PERIOD ............................    $27.50      $25.55      $24.17      $23.63      $23.77
                                                               ======      ======      ======      ======      ======
TOTAL RETURN, BEFORE MANAGEMENT FEE (a): ..................      5.90%       4.37%       0.88%      (0.17)%      5.20%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (in millions) ...................      $196        $188        $185        $197        $216
   Ratios to average net assets (b):
      TotalPortfolio Level Expenses .......................      0.73%       0.70%       0.65%       0.63%       0.65%
      Net Investment Income ...............................      2.96%       2.71%       3.27%       3.55%       3.63%
</TABLE>


(a)  Total Return,  before management fee is calculated by geometrically linking
     quarterly returns which are calculated using the formula below:

     Net Investment Income + Net Realized and Unrealized Gains/(Losses)
     ------------------------------------------------------------------
             Beg. Net Asset Value + Time Weighted Contributions
                       - Time Weighted Distributions

(b)  Average net assets are based on beginning of quarter net assets.

                                       15
<PAGE>


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

All of the assets of the Prudential Variable Contract Real Property Account (the
"Account")  are  invested in the  Prudential  Variable  Contract  Real  Property
Partnership  (the  "Partnership").   Accordingly,   the  liquidity  and  capital
resources and results of operations for the Account are contingent upon those of
the Partnership.  Therefore, this management's discussion and analysis addresses
these items at the  Partnership  level.  The partners in the Partnership are The
Prudential  Insurance  Company of America  ("Prudential"),  Pruco Life Insurance
Company,  and Pruco Life  Insurance  Company of New  Jersey  (collectively,  the
"Partners").

The following discussion and analysis of the liquidity and capital resources and
results of operations of the Partnership  should be read in conjunction with the
Financial  Statements of the Account and the  Partnership  and the related Notes
included in the financial statements herein.

(a) LIQUIDITY AND CAPITAL RESOURCES

As of June 30, 2005, the  Partnership's  liquid  assets,  consisting of cash and
cash equivalents, were approximately $32.8 million, an increase of approximately
$15.2  million  from $17.6  million at  December  31,  2004.  The  increase  was
primarily due to sales  proceeds  received in connection  with two sales,  which
resulted in $15.4 million of cash being received by the Partnership.  Sources of
liquidity  include  net  cash  flow  from  property  operations,  interest  from
short-term investments, sales, and financings. The Partnership uses cash for its
real estate  investment  activities and for distribution to its partners.  As of
June 30, 2005,  13.2% of the  Partnership's  total assets  consisted of cash and
cash equivalents.

Dispositions  for the six months  ended June 30, 2005  included  the sale of one
apartment  complex located in Salem,  Oregon and one office property  located in
Oakbrook  Terrace,  Illinois.  The two investments  sold for a combined total of
$16.1 million.

During the first six months of 2005, the Partnership  spent  approximately  $2.5
million on capital  improvements  to  existing  properties.  Approximately  $0.6
million was associated with the renovation of the apartment  complex in Atlanta,
Georgia,  $1.3 million was associated with the renovation and  redevelopment  of
the retail center in Roswell,  Georgia, and $0.2 million was associated with the
renovation of the hotel  property in Lake Oswego,  Oregon.  The  remaining  $0.4
million  was  associated  with  minor  capital  improvements  at  various  other
properties.

(b) RESULTS OF OPERATIONS

The following is a comparison of the Partnership's results of operations for the
six and three month periods ended June 30, 2005 and 2004.

                         NET INVESTMENT INCOME OVERVIEW

The  Partnership's  net investment income for the six months ended June 30, 2005
was  approximately  $4.2 million,  an increase of $0.5 million from $3.7 million
for the prior year  period.  The  Partnership's  net  investment  income for the
quarter ended June 30, 2005 was $2.2  million,  an increase of $0.5 million from
$1.7 million for the prior year period.  The increase for both the six-month and
three-month  periods  was  primarily  due  to  increased  rents  and  stabilized
occupancy  at  both  office  properties  in  Brentwood,   Tennessee.   Partially
offsetting these gains were decreases in net investment  income in the apartment
sector for both the six-month and three-month  periods as a result of (a) rental
concessions  and  mortgage  interest  incurred  for the  apartment  property  in
Atlanta, Georgia that was not applicable during the first six months of 2004 and
(b) increases in expenses at the apartment property in Jacksonville, Florida.

                                       16
<PAGE>


                               VALUATION OVERVIEW

The  Partnership  recorded an aggregate  unrealized gain of $4.6 million for the
six months ended June 30, 2005,  compared to an unrealized  gain of $2.9 million
during the prior year period. The Partnership  recorded an aggregate  unrealized
gain of $1.8 million for the three  months  ended June 30, 2005,  compared to an
unrealized  gain of $3.5 million  during the prior year period.  The  unrealized
gain  during  the  first  six  months  of 2005  was  attributed  to gains in the
apartment,  retail, industrial, and hotel sectors primarily due to strengthening
market fundamentals and continued investor demand,  which has caused an increase
in  valuations.  Partially  offsetting  these gains was the loss in value in the
office sector of $0.1 million  primarily  due to decreases in occupancy  coupled
with soft market  conditions  affecting the office property in Lisle,  Illinois.
The  unrealized  gain for the three  months  ended June 30,  2005 was  primarily
recorded in the  apartment  and hotel  sectors.  The increases for the apartment
sectors are due to investor  demand as noted above.  The hotel  sector  recorded
value  gains  mainly  due to  continued  strengthening  market  fundamentals  as
discussed above.

The Partnership  recorded an aggregate realized gain of $0.9 million for the six
months ended June 30, 205. The Partnership  recorded an aggregate  realized gain
of $1.1 million for the three months ended June 30, 2005.  The realized gain for
both the six-month and three-month  periods was  exclusively  experienced in the
office  sector in  connection  with the sale of the office  property  located in
Oakbrook Terrace, Illinois.

            NET GAIN (LOSS) ON REAL ESTATE INVESTMENTS SOLD OVERVIEW

On June 8, 2005, the Partnership  sold an office  property in Oakbrook  Terrace,
Illinois for $11.4 million,  resulting in a realized gain of approximately  $1.1
million.

The following  table presents a comparison of the  Partnership's  sources of net
investment  income,  and realized and  unrealized  gains or losses by investment
type for the six and three month periods ended June 30, 2005 and 2004.

<TABLE>
<CAPTION>
                                                  SIX MONTHS ENDED JUNE 30,     THREE MONTHS ENDED JUNE 30,
                                                 ---------------------------    ---------------------------
                                                    2005            2004           2005            2004
                                                 ----------      -----------    ----------      -----------
<S>                                              <C>             <C>            <C>             <C>
NET INVESTMENT INCOME:
Office properties ............................   $1,637,225      $   981,699    $  967,063      $   478,904
Apartment complexes ..........................    1,022,989        1,352,780       383,759          611,230
Retail properties ............................    2,229,755        2,290,760     1,174,352        1,132,508
Industrial properties ........................      248,360          320,701       128,395          172,915
Hotel property ...............................      386,454          175,683       216,918          115,952
Other (including interest income,
  investment mgt fee, etc.) ..................   (1,294,617)      (1,455,574)     (628,115)        (767,524)
                                                 ----------      -----------    ----------      -----------
TOTAL NET INVESTMENT INCOME ..................   $4,230,166      $ 3,666,049    $2,242,372      $ 1,743,985
                                                 ==========      ===========    ==========      ===========
NET REALIZED GAIN (LOSS) ON
  REAL ESTATE INVESTMENTS:
Apartment Complex ............................     (198,238)              --            --               --
Office Building ..............................    1,050,833               --     1,050,833               --
                                                 ----------      -----------    ----------      -----------
TOTAL NET REALIZED GAIN (LOSS) ON
  REAL ESTATE INVESTMENTS ....................      852,595               --     1,050,833               --
                                                 ----------      -----------    ----------      -----------
NET UNREALIZED GAIN (LOSS) ON
  REAL ESTATE INVESTMENTS:
Office properties ............................      (89,446)     $(1,194,297)      (28,140)     $   885,313
Apartment complexes ..........................    1,942,485        1,000,460     1,778,785        1,085,535
Retail properties ............................    1,028,116        3,242,461      (163,721)       1,679,353
Industrial properties ........................      995,760           13,441          (172)          21,947
Hotel property ...............................      673,812         (116,128)      224,895         (165,111)
                                                 ----------      -----------    ----------      -----------
TOTAL NET UNREALIZED GAIN (LOSS) ON
  REAL ESTATE INVESTMENTS ....................    4,550,727        2,945,937     1,811,647        3,507,037
                                                 ----------      -----------    ----------      -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
  REAL ESTATE INVESTMENTS ....................   $5,403,322      $ 2,945,937    $2,862,480      $ 3,507,037
                                                 ==========      ===========    ==========      ===========
</TABLE>

                                       17
<PAGE>


OFFICE PORTFOLIO

<TABLE>
<CAPTION>
                                         NET              NET          REALIZED /
                                     INVESTMENT       INVESTMENT       UNREALIZED       UNREALIZED
                                     INCOME/LOSS      INCOME/LOSS      GAIN/(LOSS)      GAIN/(LOSS)       OCCUPANCY        OCCUPANCY
PROPERTY                                2005             2004             2005             2004             2005             2004
--------                             -----------      -----------      -----------      -----------       ---------        ---------
<S>                                   <C>               <C>            <C>              <C>                  <C>              <C>
SIX MONTHS ENDING JUNE 30,
Lisle, IL......................       $  238,290        $ 184,040       $ (398,854)     $(2,104,741)          43%              44%
Brentwood, TN..................          496,983          399,601          107,333          260,740           90%              83%
Oakbrook Terrace, IL*..........          253,544          122,627        1,173,295         (511,164)         N/A               41%
Beaverton, OR..................          398,695          453,390          (54,196)              --           75%              75%
Brentwood, TN..................          249,713         (177,959)         133,809        1,160,868          100%             100%
                                      ----------        ---------       ----------      -----------
                                      $1,637,225        $ 981,699       $  961,387      $(1,194,297)
                                      ----------        ---------       ----------      -----------
THREE MONTHS ENDING JUNE 30,
Lisle, IL......................       $  136,858        $  90,839            $  --            $  --
Brentwood, TN..................          271,298          199,316          (41,340)         300,000
Oakbrook Terrace, IL*..........          187,324           58,992        1,072,029         (141,279)
Beaverton, OR..................          180,688          217,086           (7,996)              --
Brentwood, TN..................          190,895          (87,329)              --          726,592
                                      ----------        ---------       ----------      -----------
                                      $  967,063        $ 478,904       $1,022,693      $   885,313
                                      ----------        ---------       ----------      -----------
</TABLE>

*  Net Investment Income for the six months ended June 30, 2005 and three months
   ended June 30, 2005 reflects  partial period results for the office  property
   located in Oakbrook Terrace, Illinois that was sold on June 8, 2005.

                              NET INVESTMENT INCOME


Net investment income for the Partnership's  office properties was approximately
$1.6 million for the six months ended June 30, 2005, an increase of $0.7 million
from the prior year period.  Net investment income for the Partnership's  office
properties  was  approximately  $1.0 million for the three months ended June 30,
2005,  an increase of $0.5 million from the prior year period.  The increase for
both periods was  primarily due to  stabilized  occupancy  and increased  market
rents at both of the  Partnership's  office assets in  Brentwood,  Tennessee and
lower expenses incurred at the office property in Oakbrook Terrace, Illinois.

                   TOTAL REALIZED AND UNREALIZED GAIN/(LOSS)

The office  properties owned by the Partnership  recorded an aggregate  realized
and unrealized gain of approximately $1.0 million during the first six months of
2005,  compared to an unrealized loss of $1.2 million for the prior year period.
The sale of the office property in Oakbrook  Terrace,  Illinois at a price above
market value contributed to this 2005 gain.

The office properties owned by the Partnership  recorded an aggregate unrealized
loss of  approximately  $1.2  million  during the first six months of 2004.  The
decrease in values was primarily due to a decline in market rents, a decrease in
occupancy due to various lease expirations and increases in leasing commissions,
tenant improvements and tenant concessions associated with the office properties
located in Lisle, Illinois and Oakbrook Terrace, Illinois.

The office  properties owned by the Partnership  recorded an aggregate  realized
and  unrealized  gain of  approximately  $1.0 million for the three months ended
June 30,  2005  primarily  due to the sale of the office  property  in  Oakbrook
Terrace, Illinois as discussed above.

                                       18
<PAGE>


APARTMENT COMPLEXES

<TABLE>
<CAPTION>
                                         NET              NET          REALIZED/
                                     INVESTMENT       INVESTMENT       UNREALIZED       UNREALIZED
                                     INCOME/LOSS      INCOME/LOSS      GAIN/(LOSS)      GAIN/(LOSS)       OCCUPANCY        OCCUPANCY
PROPERTY                                2005             2004             2005             2004             2005             2004
--------                             -----------      -----------      -----------      -----------       ---------        ---------
<S>                                   <C>             <C>              <C>              <C>                  <C>              <C>
SIX MONTHS ENDING JUNE 30,
Atlanta, GA....................       $   42,837      $   420,536      $    92,560      $   275,009          91%              91%
Raleigh, NC....................          264,595          294,903          990,152          607,985          94%              94%
Jacksonville, FL...............          400,916          519,311          304,269          (64,829)         92%              95%
Gresham/Salem, OR*.............          314,641          118,030          357,266          182,295          86%              86%
                                      ----------      -----------      -----------      -----------
                                      $1,022,989      $ 1,352,780      $ 1,744,247      $ 1,000,460
                                      ----------      -----------      -----------      -----------
THREE MONTHS ENDING JUNE 30,
Atlanta, GA....................       $  (28,369)     $   213,167      $   298,258      $   (14,991)
Raleigh, NC....................          119,679          147,211          990,813          672,985
Jacksonville, FL...............          182,036          245,694          (12,722)         (36,829)
Gresham/Salem, OR*.............          110,413            5,158          502,436          464,370
                                      ----------      -----------      -----------      -----------
                                      $  383,759      $   611,230      $ 1,778,785      $ 1,085,535
                                      ----------      -----------      -----------      -----------
</TABLE>

*  Net investment income for the six months ended June 30, 2005 reflects partial
   period results for the apartment  property in Salem,  Oregon that was sold on
   March 10, 2005 and full period results for the apartment property in Gresham,
   Oregon.  Net  investment  income for the three  months  ended  June 30,  2005
   reflects  results  for  the  apartment  property  in  Gresham,   Oregon.  Net
   investment  income for the six months  ended June 30,  2004 and three  months
   ended June 30, 2004 reflects results for four apartment properties located in
   Gresham/Salem, Oregon, two of which were sold prior to year-end 2004.

                              NET INVESTMENT INCOME

Net  investment  income  for the  Partnership's  apartment  properties  was $1.0
million for the six months  ended June 30, 2005, a decrease of $0.3 million from
the prior year period.  Net investment  income for the  Partnership's  apartment
properties was $0.4 million for the three months ended June 30, 2005, a decrease
of $0.2 million  from the prior year  period.  The decrease for both periods was
primarily due to (a) rental  concessions and mortgage  interest incurred for the
apartment property in Atlanta,  Georgia that was applicable during the first six
months of 2004 and (b)  increases  in  expenses  at the  apartment  property  in
Jacksonville, Florida. Partially offsetting the decrease for both periods was an
increase in net investment income for the apartment properties in Gresham/Salem,
Oregon due to a  diminution  of mortgage  interest  expense  resulting  from the
prepayment of debt.

                    TOTAL REALIZED AND UNREALIZED GAIN/(LOSS)

The  Partnership  recorded an aggregate  unrealized  and  realized  gain of $1.7
million for the six months ended June 30, 2005,  compared to an unrealized  gain
of $1.0 million for the prior year period. The unrealized gain was primarily due
to continued investor demand, which has caused an increase in valuations.

The  apartment  properties  owned  by  the  Partnership  recorded  an  aggregate
unrealized  gain of $1.8  million  for the three  months  ended  June 30,  2005,
compared  to an  aggregate  unrealized  gain of $1.1  million for the prior year
period.  The unrealized  gain was primarily due to investor  demand as discussed
above.

                                       19
<PAGE>


RETAIL PROPERTIES

<TABLE>
<CAPTION>
                                         NET              NET          REALIZED/
                                     INVESTMENT       INVESTMENT       UNREALIZED       UNREALIZED
                                     INCOME/LOSS      INCOME/LOSS      GAIN/(LOSS)      GAIN/(LOSS)       OCCUPANCY        OCCUPANCY
PROPERTY                                2005             2004             2005             2004             2005             2004
--------                             -----------      -----------      -----------      -----------       ---------        ---------
<S>                                   <C>             <C>              <C>              <C>                  <C>              <C>
SIX MONTHS ENDING JUNE 30,
Roswell, GA....................       $  814,280      $   784,360      $   (83,107)     $   (74,215)         77%              74%
Kansas City, KS; MO............          206,952          261,406         (962,104)       1,827,239          79%              87%
Hampton, VA ...................          615,350          611,260        1,200,000          587,150         100%             100%
Ocean City, MD.................          472,735          411,613          873,327          902,287          90%              99%
Westminster, MD*...............               --          142,901               --               --          N/A              N/A
Westminster, MD **.............          120,438           79,220               --               --          N/A              N/A
                                      ----------      -----------      -----------      -----------
                                      $2,229,755      $ 2,290,760      $ 1,028,116      $ 3,242,461
                                      ----------      -----------      -----------      -----------
THREE MONTHS ENDING JUNE 30,
Roswell, GA....................       $  366,158      $   357,942      $   339,538      $   (34,505)
Kansas City, KS; MO............           84,202          100,794       (1,048,782)       1,083,231
Hampton, VA ...................          307,642          307,179               --          301,650
Ocean City, MD.................          354,754          235,242          545,523          328,977
Westminster, MD*...............               --          111,257               --               --
Westminster, MD **.............           61,596           20,094               --               --
                                      ----------      -----------      -----------      -----------
                                      $1,174,352      $ 1,132,508      $  (163,721)     $ 1,679,353
                                      ----------      -----------      -----------      -----------
</TABLE>

*  Classified as Other Real Estate Investment (Paid off September 13, 2004)

** Mortgage Loan Receivable (Acquired January 2004)

                              NET INVESTMENT INCOME

Net investment income for the  Partnership's  retail properties was $2.2 million
for the six months  ended June 30,  2005,  a decrease of $0.1  million  from the
prior year period. Net investment income for the Partnership's retail properties
was $1.2 million for the three  months ended June 30, 2005,  an increase of $0.1
million from the prior year period. The decrease in net investment income during
the first six months of 2005 was primarily due to interest  income  received the
prior year in  connection  with the loan made by the  Partnership  to the retail
center in  Westminster,  Maryland that was paid off on September  13, 2004.  The
increase in net  investment  income for the three months ended June 30, 2005 was
primarily  due to  decreased  expenses  at the retail  property  in Ocean  City,
Maryland.  Partially  offsetting the gain was the interest  income  received the
prior year at the retail center in Westminster, Maryland as discussed above.

                             UNREALIZED GAIN/(LOSS)

The retail properties recorded an aggregate  unrealized gain of $1.0 million for
the six months  ended June 30,  2005,  compared  to an  unrealized  gain of $3.2
million for the prior year period.  The  unrealized  gain was  primarily  due to
continued  investor demand at the retail centers in Hampton,  Virginia and Ocean
City,  Maryland  that  recorded  a  combined  unrealized  gain of $2.1  million.
Partially offsetting these gains was an unrealized loss of $1.0 million recorded
at the  retail  centers  located in Kansas  City,  Kansas  and  Missouri  due to
increased  vacancy and near-term lease  expirations and $0.1 million recorded at
the retail center in Roswell, Georgia.

The retail properties recorded an aggregate  unrealized loss of $0.2 million for
the three  months ended June 30, 2005,  compared to an  unrealized  gain of $1.7
million for the prior year period.  The  unrealized  loss is primarily  due to a
decrease in value recorded at the retail centers located in Kansas City,  Kansas
and Missouri as discussed above.  Partially  offsetting the loss were unrealized
gains of $0.3 million recorded at the retail center in Roswell, Georgia and $0.5
million recorded at the retail center in Ocean City, Maryland.

                                       20
<PAGE>


INDUSTRIAL PROPERTIES

<TABLE>
<CAPTION>
                                         NET              NET
                                     INVESTMENT       INVESTMENT       UNREALIZED       UNREALIZED
                                     INCOME/LOSS      INCOME/LOSS      GAIN/(LOSS)      GAIN/(LOSS)       OCCUPANCY        OCCUPANCY
PROPERTY                                2005             2004             2005             2004             2005             2004
--------                             -----------      -----------      -----------      -----------       ---------        ---------
<S>                                   <C>             <C>               <C>               <C>                <C>              <C>
SIX MONTHS ENDING JUNE 30,
Aurora, CO.....................       $  248,360      $   319,438       $  995,760        $  13,441          81%              88%
Bolingbrook, IL................               --            2,603               --               --          Sold September 2002
Salt Lake City, UT.............               --           (1,340)              --               --           Sold January 2003
                                      ----------      -----------       ----------        ---------
                                      $  248,360      $   320,701       $  995,760        $  13,441
                                      ----------      -----------       ----------        ---------
THREE MONTHS ENDING JUNE 30,
Aurora, CO.....................       $  128,395      $   174,026       $     (172)       $  21,947
Bolingbrook, IL................               --               --               --               --
Salt Lake City, UT.............               --           (1,111)              --               --
                                      ----------      -----------       ----------        ---------
                                      $  128,395      $   172,915       $     (172)       $  21,947
                                      ----------      -----------       ----------        ---------
</TABLE>

                              NET INVESTMENT INCOME

Net investment income for the Partnership's industrial property was $0.2 million
for the six months  ended June 30,  2005,  a decrease of $0.1  million  from the
prior  year  period.  Net  investment  income for the  Partnership's  industrial
property  was $0.1  million for the three months ended June 30, 2005, a decrease
of $0.1 million from the prior year period.  The decrease was  primarily  due to
lower occupancy, as a result of a lease termination in 2004.

                             UNREALIZED GAIN/(LOSS)

The Aurora,  Colorado industrial  property owned by the Partnership  recorded an
unrealized gain of approximately  $1.0 million for the six months ended June 30,
2005. The unrealized  gain was primarily due to continuing  investor  demand for
this product type.

HOTEL PROPERTY

<TABLE>
<CAPTION>
                                         NET              NET
                                     INVESTMENT       INVESTMENT       UNREALIZED       UNREALIZED
                                     INCOME/LOSS      INCOME/LOSS      GAIN/(LOSS)      GAIN/(LOSS)       OCCUPANCY        OCCUPANCY
PROPERTY                                2005             2004             2005             2004             2005             2004
--------                             -----------      -----------      -----------      -----------       ---------        ---------
<S>                                    <C>              <C>              <C>             <C>                 <C>              <C>
SIX MONTHS ENDING JUNE 30,
Lake Oswego, OR ...............        $386,454         $175,683         $673,812        $(116,128)          72%              68%
THREE MONTHS ENDING JUNE 30,
Lake Oswego, OR ...............        $216,918         $115,952         $224,895        $(165,111)
</TABLE>

                              NET INVESTMENT INCOME

Net investment income for the Partnership's  hotel property was $0.4 million for
the six months ended June 30,  2005,  an increase of $0.2 million from the prior
year period. Net investment income for the Partnership's hotel property was $0.2
million for the three months  ended June 30,  2005,  an increase of $0.1 million
from the prior year period.  The increase was  primarily  attributed  to reduced
expenses and higher average daily rates generated at the hotel for the first six
months ended June 30, 2005 compared to the prior year period.

                             UNREALIZED GAIN/(LOSS)

The Lake Oswego,  Oregon hotel  property  owned by the  Partnership  recorded an
unrealized gain of $0.7 million for the six months ended June 30, 2005, compared
to  an  unrealized  loss  of  $0.1  million  for  the  prior  year  period.  The
Partnership's hotel property recorded an unrealized gain of $0.2 million for the
three months ended June 30, 2005, compared to an unrealized loss of $0.2 million
for the prior year period.  The increase for both periods was  primarily  due to
strengthening market fundamentals.

                                       21
<PAGE>


OTHER

Other net investment  income  increased $0.2 million during the six months ended
June 30, 2005 from the prior year period.  Other net investment  income includes
interest income from short-term  investments,  investment  management  fees, and
portfolio level expenses.

(c) INFLATION

The Partnership's  leases with a majority of its commercial  tenants provide for
recoveries of expenses  based upon the tenant's  proportionate  share of, and/or
increases in, real estate taxes and certain  operating  costs,  which may reduce
the  Partnership's  exposure to  increases  in operating  costs  resulting  from
inflation.

CRITICAL ACCOUNTING POLICIES

The preparation of financial  statements in conformity with US GAAP requires the
application  of accounting  policies that often involve a significant  degree of
judgment.  Management  reviews critical  estimates and assumptions on an ongoing
basis. If management  determines,  as a result of its consideration of facts and
circumstances,  that modifications in assumptions and estimates are appropriate,
results of  operations  and  financial  position as  reported  in the  Financial
Statements of the Account and the Partnership may change significantly.

The following sections discuss critical accounting policies applied in preparing
the  financial  statements  of the  Account  and the  Partnership  that are most
dependent on the application of estimates and assumptions.

VALUATION OF INVESTMENTS

REAL ESTATE  INVESTMENTS  -- The  Partnership's  investments  in real estate are
initially carried at their purchase price. Subsequently, real estate investments
are  reported at their  estimated  market  values based upon  appraisal  reports
prepared  by  independent  real  estate  appraisers  (members  of the  Appraisal
Institute or an  equivalent  organization)  within a  reasonable  amount of time
following  acquisition of the real estate and no less  frequently  than annually
thereafter,  with independent updates quarterly. The Chief Real Estate Appraiser
of Prudential  Investment  Management  ("PIM") is responsible to assure that the
valuation process provides objective and reasonable market value estimates.  The
market value of real estate  investments  does not reflect the transaction  sale
costs, which may be incurred upon disposition of real estate investments.

The purpose of an appraisal is to estimate the market value of real estate as of
a specific  date.  Market value has been defined as the most probable  price for
which the  appraised  real estate will sell in a  competitive  market  under all
conditions  requisite  for a fair sale,  with the buyer and seller  each  acting
prudently,  knowledgeably, and in their self interest, and assuming that neither
is under undue duress.

Unconsolidated real estate  partnerships are valued at the Partnership's  equity
in net assets,  as reflected in the  partnership's  financial  statements,  with
properties valued as described above.

Mortgage  and other loans  receivable,  which are  accounted  for as loans,  are
independently   valued  according  to  the  same  appraisal   process  as  other
investments in real estate.

As described  above,  the estimated  market value of real estate and real estate
related assets is determined through an appraisal process, except for other real
estate investments, which are determined as stated above. These estimated market
values  may  vary  significantly  from the  prices  at  which  the  real  estate
investments would sell because market prices of real estate investments can only
be determined by  negotiation  between a willing buyer and seller.  Although the
estimated market values represent subjective estimates, management believes that
these estimated market values are reasonable approximations of market prices and
the aggregate value of investments in real estate is fairly presented as of June
30, 2005 and June 30, 2004.

                                       22
<PAGE>


OTHER ESTIMATES

The  preparation  of financial  statements in  conformity  with US GAAP requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities at the date of the financial  statements and the reported
amounts of revenues and expenses  during the reporting  period.  Actual  results
could differ from those estimates.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

INTEREST RATE RISK -- The Partnership's exposure to market rate risk for changes
in interest rates relates to  approximately  38.86% (as of June 30, 2005) of its
investment  portfolio  consisting  primarily of short-term fixed rate commercial
paper and fixed and variable  interest rate debt. The  Partnership  does not use
derivative  financial  instruments.   By  policy,  the  Partnership  places  its
investments with high quality debt security issuers, limits the amount of credit
exposure to any one issuer,  limits  duration by restricting the term, and holds
investments to maturity except under unusual circumstances.

The table below presents the amounts and related weighted  interest rates of the
Partnership's cash equivalents and short-term investments at June 30, 2005:

                                              ESTIMATED MARKET
                                                    VALUE            AVERAGE
                                 MATURITY      (IN $ MILLIONS)    INTEREST RATE
                               ------------  ------------------  ---------------
Cash and Cash equivalents....   0-3 months         $32.8              2.66%

The table below discloses the Partnership's debt as of June 30, 2005. All of the
Partnership's  long-term  debt bears  interest at fixed rates and  therefore the
fair value of these instruments is affected by changes in market interest rates.
The following  table presents  principal  cash flows (in  thousands)  based upon
maturity dates of the debt obligations and the related weighted-average interest
rates by expected maturity dates for the fixed rate debt.

<TABLE>
<CAPTION>
DEBT (IN $ THOUSANDS),             7/1/2005-                                                                               ESTIMATED
INCLUDING CURRENT PORTION         12/31/2005    2006       2007         2008         2009      THEREAFTER      TOTAL      FAIR VALUE
-------------------------         ----------    ----       ----         ----         ----      ----------      -----      ----------
<S>                                  <C>        <C>        <C>        <C>           <C>          <C>          <C>           <C>
Average Fixed Interest Rate ....     5.20%      5.20%      5.18%         4.99%        5.20%        6.75%         6.17%
Fixed Rate .....................     $196       $550       $589       $26,092       $8,746       $7,284       $43,457       $43,085
Variable Rate ..................       --         --         --            --           --           --            --            --
                                    ------------------------------------------------------------------------------------------------
Total Mortgage Loans Payable ...     $196       $550       $589       $26,092       $8,746       $7,284       $43,457       $43,085
                                    ------------------------------------------------------------------------------------------------
</TABLE>

The  Partnership is exposed to market risk from tenants.  While the  Partnership
has not experienced any significant credit losses, in the event of a significant
rising interest rate environment and/or economic downturn,  delinquencies  could
increase and result in losses to the  Partnership  and the Account,  which would
adversely affect its operating results and liquidity.

ITEM 4. CONTROLS AND PROCEDURES

In order to ensure that the information we must disclose in our filings with the
Securities  and Exchange  Commission  is recorded,  processed,  summarized,  and
reported  on a timely  basis,  the  Company's  management,  including  our Chief
Executive Officer and Chief Financial  Officer,  have reviewed and evaluated the
effectiveness of our disclosure controls and procedures,  as defined in Exchange
Act  Rules  13a-15(e)  and  15d-15(e),  as of  June  30,  2005.  Based  on  such
evaluation,  the Chief  Executive  Officer  and  Chief  Financial  Officer  have
concluded that, as of June 30, 2005, our disclosure controls and procedures were
effective  in  timely  alerting  them to  material  information  relating  to us
required to be included in our periodic SEC filings. There has been no change in
our internal control over financial  reporting during the quarter ended June 30,
2005,  that has  materially  affected,  or is  reasonably  likely to  materially
affect, our internal control over financial reporting.

                                       23
<PAGE>


                          PART II -- OTHER INFORMATION

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

     Contract owners  participating  in the Real Property Account have no voting
     rights with respect to the Real Property Account.

ITEM 6. EXHIBITS


     EXHIBITS

     31.1     Section 302 Certification of the Chief Executive Officer.

     31.2     Section 302 Certification of the Chief Financial Officer.

     32.1     Section 906 Certification of the Chief Executive Officer.

     32.2     Section 906 Certification of the Chief Financial Officer.


                                       24
<PAGE>


                                   SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorized.


                   PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY
                                  IN RESPECT OF
        PRUCO LIFE OF NEW JERSEY VARIABLE CONTRACT REAL PROPERTY ACCOUNT
        ----------------------------------------------------------------
                                  (REGISTRANT)

          ------------------------------------------------------------


Date:   August 15, 2005                          By: /s/ Bernard J. Jacob
        --------------                               ----------------
                                                         Bernard J. Jacob
                                                         Chief Executive Officer


                                       25