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

                                  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 MARCH 31, 2003

                                       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)


                                 (800) 778-2255
              ----------------------------------------------------
              (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 [_]


AMENDMENT ______________________________________________________________________

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

END OF AMENDMENT________________________________________________________________



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

<PAGE>


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


                                      INDEX
                                      -----

                                                                            PAGE
                                                                            ----

PART I--FINANCIAL INFORMATION

Item 1.  Financial Statements (Unaudited)

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

         Statements of Net Assets--March 31, 2003 and December 31, 2002 ..    3

         Statements of Operations--Three Months Ended March 31, 2003
            and 2002 .....................................................    3

         Statements of Changes in Net Assets--Three Months Ended
            March 31, 2003 and 2002 ......................................    3

         Notes to the Financial Statements of the Account ................    4

B. THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

         Consolidated Statements of Assets and Liabilities--
            March 31, 2003 and December 31, 2002 .........................    6

         Consolidated Statements of Operations--Three Months Ended
            March 31, 2003 and 2002 ......................................    7

         Consolidated Statements of Changes in Net Assets--
            Three Months Ended March 31, 2003 and 2002 ...................    8

         Consolidated Statements of Cash Flows--Three Months Ended
            March 31, 2003 and 2002 ......................................    9

         Consolidated Schedules of Investments--March 31, 2003
            and December 31, 2002 ........................................    10

         Notes to the Financial Statements of the Partnership ............    11

Item 2.  Management's Discussion and Analysis of Financial Condition
            and Results of Operations ....................................    13

Item 3.  Quantitative and Qualitative Disclosures About Market Risks .....    18

Item 4.  Controls and Procedures .........................................    19

PART II--OTHER INFORMATION

Item 5.  Submission of Matters to a Vote of Security Holders .............    20

Item 6.  Exhibits and Reports on Form 8-K ................................    20

         Signature Page ..................................................    22

         Certifications ..................................................    23

                                        2
<PAGE>


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

<TABLE>
<CAPTION>
STATEMENTS OF NET ASSETS
March 31, 2003 and December 31, 2002
                                                                                MARCH 31, 2003
                                                                                  (UNAUDITED)       DECEMBER 31, 2002
                                                                                --------------      -----------------
<S>                                                                              <C>                  <C>
ASSETS
Investment in The Prudential Variable Contract Real Property Partnership .....   $  8,787,651         $  8,854,905
                                                                                 ------------         ------------
Net Assets ...................................................................   $  8,787,651         $  8,854,905
                                                                                 ============         ============
NET ASSETS, REPRESENTING:
Equity of contract owners ....................................................   $  5,775,684         $  5,818,363
Equity of Pruco Life Insurance Company of New Jersey .........................      3,011,967            3,036,542
                                                                                 ------------         ------------
                                                                                 $  8,787,651         $  8,854,905
                                                                                 ============         ============
Units outstanding ............................................................      4,047,133            4,041,054
                                                                                 ============         ============

STATEMENTS OF OPERATIONS
For the three months ended March 31, 2003 and 2002

                                                                              1/1/2003-3/31/2003   1/1/2002-3/31/2002
                                                                                  (UNAUDITED)          (UNAUDITED)
                                                                              ------------------   ------------------
INVESTMENT INCOME
Net investment income from Partnership operations ............................   $    114,136         $    129,173
                                                                                 ------------         ------------
EXPENSES
Charges to contract owners for assuming mortality risk and
   expense risk and for administration .......................................          8,223                8,108
                                                                                 ------------         ------------
NET INVESTMENT INCOME ........................................................        105,913              121,065
                                                                                 ------------         ------------

NET REALIZED AND UNREALIZED GAIN
   (LOSS) ON INVESTMENTS
Net change in unrealized loss on investments in Partnership ..................       (203,776)            (166,801)
Net realized gain (loss) on sale of investments in Partnership ...............         22,386                  (70)
                                                                                 ------------         ------------
NET LOSS ON INVESTMENTS ......................................................       (181,390)            (166,871)
                                                                                 ------------         ------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS .........................   $    (75,477)        $    (45,806)
                                                                                 ============         ============

STATEMENTS OF CHANGES IN NET ASSETS
For the three months ended March 31, 2003 and 2002

                                                                              1/1/2003-3/31/2003   1/1/2002-3/31/2002
                                                                                  (UNAUDITED)          (UNAUDITED)
                                                                              ------------------   ------------------
OPERATIONS
Net investment income ........................................................   $    105,913         $    121,065
Net change in unrealized loss on investments in Partnership ..................       (203,776)            (166,801)
Net realized gain (loss) on sale of investments in Partnership ...............         22,386                  (70)
                                                                                 ------------         ------------

NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS .........................        (75,477)             (45,806)
                                                                                 ------------         ------------

CAPITAL TRANSACTIONS
Net contributions (withdrawals) by contract owners ...........................          9,845              (43,920)
Net contributions (withdrawals) by Pruco Life Insurance Company
   of New Jersey .............................................................         (1,622)              52,028
                                                                                 ------------         ------------

NET INCREASE IN NET ASSETS RESULTING
   FROM CAPITAL TRANSACTIONS .................................................          8,223                8,108
                                                                                 ------------         ------------
TOTAL DECREASE IN NET ASSETS .................................................        (67,254)             (37,698)

NET ASSETS
Beginning of period ..........................................................      8,854,905            8,747,935
                                                                                 ------------         ------------
End of period ................................................................   $  8,787,651         $  8,710,237
                                                                                 ============         ============
</TABLE>


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

                                        3
<PAGE>


                      NOTES TO THE FINANCIAL STATEMENTS OF
        PRUCO LIFE OF NEW JERSEY VARIABLE CONTRACT REAL PROPERTY ACCOUNT
                                 MARCH 31, 2003
                                   (UNAUDITED)

NOTE 1: GENERAL

Pruco Life of New Jersey Variable Contract Real Property Account ("Real Property
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"),  as a separate investment account pursuant to
New Jersey law.  The assets of the Real  Property  Account are  segregated  from
Pruco Life of New Jersey's  other assets.  The Real Property  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 Real Property Account are invested in The Prudential  Variable
Contract Real Property  Partnership  (the  "Partnership").  The  Partnership  is
organized  under New Jersey law and is registered  under the  Securities  Act of
1933. The Partnership is the investment vehicle for assets allocated to the real
estate  investment  option under  certain  variable  life  insurance and annuity
contracts.  The Real  Property  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 March 31, 2003 and for the three months ended
March 31,  2003 and March 31,  2002 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  Real  Property  Account's
proportionate  interest of the Partnership's market value. At March 31, 2003 and
December 31, 2002 the Real Property  Account's  interest in the  Partnership was
4.8% or 367,199 shares.

C. INCOME RECOGNITION

Net  investment  income  and  realized  and  unrealized  gains  and  losses  are
recognized   daily.   Amounts  are  based  upon  the  Real  Property   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 Real Property  Account for
property  acquisitions  and capital  expenditure  funding needs. The position is
also utilized for liquidity  purposes  including unit purchases and redemptions,
Partnership share transactions,  and expense  processing.  The position does not
have an effect on the contract owner's account or the related unit value.


NOTE 3:  INVESTMENT INFORMATION FOR THE PRUDENTIAL VARIABLE CONTRACT REAL
         PROPERTY PARTNERSHIP

The  number  of  shares  (rounded)  held by the  Real  Property  Account  in the
Partnership and the Partnership net asset value per share (rounded) at March 31,
2003 and December 31, 2002 were as follows:

                                          MARCH 31, 2003
                                            (UNAUDITED)       DECEMBER 31, 2002
                                          --------------      -----------------
NUMBER OF SHARES (ROUNDED):                   367,199              367,199
NET ASSET VALUE PER SHARE (ROUNDED):          $23.93               $24.11


                                        4
<PAGE>


NOTE 4: 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.

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.

C. COST OF INSURANCE AND OTHER RELATED CHARGES

Contract owner  contributions  are subject to certain  deductions prior to being
invested in the Real Property  Account.  The  deductions for VAL and VLI are (1)
state premium taxes; (2) sales charges 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, 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.

D. DEFERRED SALES CHARGE

Subsequent to a contract  owner  redemption,  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.  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.

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.


NOTE 5: 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 Real  Property
Account  form a part of  Prudential's  consolidated  federal tax  return.  Under
current  federal law, no federal  income taxes are payable by the Real  Property
Account.  As such, no provision for the tax liability has been recorded in these
financial statements.


NOTE 6: NET WITHDRAWALS (CONTRIBUTIONS) BY CONTRACT OWNERS

Net  withdrawals  by contract  owners for the real estate  investment  option in
Pruco Life  Insurance  Company of New Jersey's  variable  insurance and variable
annuity  products for the three  months  ended March 31, 2003 and 2002,  were as
follows:

                                                       MARCH 31,
                                            2003                     2002
                                         -----------              -----------
                                                      (UNAUDITED)
VAL                                        $(2,938)                  $30,939
VLI                                         (7,326)                    2,140
SPVA                                             0                         0
SPVL                                           419                    10,841
                                         ---------                ----------
TOTAL                                      $(9,845)                  $43,920
                                         =========                ==========

                                        5
<PAGE>


           THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

                CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
                                                                                   MARCH 31,
                                                                                     2003              DECEMBER 31,
                                                                                  (UNAUDITED)             2002
                                                                                 ------------         ------------
<S>                                                                              <C>                  <C>
ASSETS
REAL ESTATE INVESTMENTS--At estimated market value:
   Real estate and improvements
      (cost: 03/31/2003--$209,609,246; 12/31/2002--$215,592,277) .............   $188,085,753         $196,631,183
   Real estate partnership
      (cost: 03/31/2003--$10,623,116; 12/31/2002--$9,931,394) ................      9,362,698            8,978,324
                                                                                 ------------         ------------
      Total real estate investments ..........................................    197,448,451          205,609,507
CASH AND CASH EQUIVALENTS ....................................................     25,048,896           18,591,149
OTHER ASSETS (net of allowance for uncollectible accounts:
   03/31/2003--$74,000; 12/31/2002--$69,000) .................................      5,748,731            5,519,457
                                                                                 ------------         ------------
      Total assets ...........................................................   $228,246,078         $229,720,113
                                                                                 ============         ============
LIABILITIES
MORTGAGE LOANS PAYABLE .......................................................     35,480,637           35,699,108
ACCOUNTS PAYABLE AND ACCRUED EXPENSES ........................................      3,158,795            3,092,098
DUE TO AFFILIATES ............................................................        893,244              907,503
OTHER LIABILITIES ............................................................        916,324              911,245
MINORITY INTEREST ............................................................      4,843,745            4,756,653
                                                                                 ------------         ------------
   Total liabilities .........................................................     45,292,745           45,366,607
                                                                                 ------------         ------------
COMMITMENTS AND CONTINGENCIES
PARTNERS' EQUITY .............................................................    182,953,333          184,353,506
                                                                                 ------------         ------------
   Total liabilities and partners' equity ....................................   $228,246,078         $229,720,113
                                                                                 ============         ============
NUMBER OF SHARES OUTSTANDING AT END OF PERIOD ................................      7,644,848            7,644,848
                                                                                 ============         ============
SHARE VALUE AT END OF PERIOD .................................................         $23.93               $24.11
                                                                                 ============         ============
</TABLE>


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

                                        6
<PAGE>


           THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                 THREE MONTHS         THREE MONTHS
                                                                                     ENDED                ENDED
                                                                                MARCH 31, 2003       MARCH 31, 2002
                                                                                 ------------         ------------
<S>                                                                              <C>                  <C>
INVESTMENT INCOME:
   Revenue from real estate and improvements .................................   $  6,224,502         $  6,542,615
   Equity in income of real estate partnership ...............................        160,736               76,042
   Interest on short-term investments ........................................         65,414              106,104
                                                                                 ------------         ------------
      Total investment income ................................................      6,450,652            6,724,761
                                                                                 ------------         ------------
INVESTMENT EXPENSES:
   Operating .................................................................      1,314,572            1,255,908
   Investment management fee .................................................        577,586              618,236
   Real estate taxes .........................................................        667,791              704,648
   Administrative ............................................................        805,145              669,592
   Interest expense ..........................................................        581,267              490,084
   Minority interest .........................................................        128,049               60,375
                                                                                 ------------         ------------
      Total investment expenses ..............................................      4,074,410            3,798,843
                                                                                 ------------         ------------
NET INVESTMENT INCOME ........................................................      2,376,242            2,925,918
                                                                                 ------------         ------------
REALIZED AND UNREALIZED LOSS ON REAL ESTATE INVESTMENTS:
   Net proceeds from real estate investments sold ............................      5,689,488                6,075
   Less: Cost of real estate investments sold ................................      6,620,263                7,653
          Realization of prior years' unrealized loss on
          real estate investments sold .......................................     (1,396,836)                --
                                                                                 ------------         ------------
   Net gain (loss) realized on real estate investments sold ..................        466,061               (1,578)
                                                                                 ------------         ------------
   Change in unrealized loss on real estate investments ......................     (4,266,583)          (3,816,428)
   Less: Minority interest in unrealized loss on real estate investments .....        (24,107)             (38,183)
                                                                                 ------------         ------------
   Net unrealized loss on real estate investments ............................     (4,242,476)          (3,778,245)
                                                                                 ------------         ------------
NET REALIZED AND UNREALIZED LOSS
   ON REAL ESTATE INVESTMENTS ................................................     (3,776,415)          (3,779,823)
                                                                                 ------------         ------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS .........................   $ (1,400,173)        $   (853,905)
                                                                                 ============         ============
</TABLE>


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

                                        7
<PAGE>


           THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

                CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                    THREE MONTHS ENDED MARCH 31,
                                                                                 ---------------------------------
                                                                                     2003                 2002
                                                                                 ------------         ------------
<S>                                                                              <C>                  <C>
NET DECREASE IN NET ASSETS RESULTING
   FROM OPERATIONS:
   Net investment income .....................................................   $  2,376,242         $  2,925,918
   Net gain (loss) realized on real estate investments sold ..................        466,061               (1,578)
   Net unrealized loss from real estate investments ..........................     (4,242,476)          (3,778,245)
                                                                                 ------------         ------------
      Net decrease in net assets resulting from operations ...................     (1,400,173)            (853,905)
                                                                                 ------------         ------------
NET DECREASE IN NET ASSETS ...................................................     (1,400,173)            (853,905)
NET ASSETS--Beginning of period ..............................................    184,353,506          198,150,636
                                                                                 ------------         ------------
NET ASSETS--End of period ....................................................   $182,953,333         $197,296,731
                                                                                 ============         ============
</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 CASH FLOWS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                 THREE MONTHS         THREE MONTHS
                                                                                     ENDED                ENDED
                                                                                MARCH 31, 2003       MARCH 31, 2002
                                                                                 ------------         ------------
<S>                                                                              <C>                  <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (decrease) increase in net assets resulting from operations ..............   $ (1,400,173)        $   (853,905)
Adjustments to reconcile net (decrease) increase in net assets
   resulting from operations to net cash flows from operating activities:
      Net realized and unrealized loss on investments ........................      3,776,415            3,779,823
      Equity in income of real estate partnership in excess
        of distributions .....................................................        (86,486)             (76,043)
      Minority interest from operating activities ............................        128,049               60,375
      Bad debt expense .......................................................         33,661                3,985
      (Increase) Decrease in:
        Dividend receivable ..................................................           --                 20,802
        Other assets .........................................................       (262,935)              15,756
      Increase (Decrease) in:
        Accounts payable and accrued expenses ................................         66,697             (379,066)
        Due to affiliates ....................................................        (14,259)             (25,240)
        Other liabilities ....................................................          5,079               42,843
                                                                                 ------------         ------------
   Net cash flows from operating activities ..................................      2,246,048            2,589,330
                                                                                 ------------         ------------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Net proceeds from real estate investments sold ............................      5,689,488                6,075
      Additions to real estate ...............................................       (637,232)            (141,107)
      Additions to real estate partnership ...................................       (605,236)            (485,725)
                                                                                 ------------         ------------
   Net cash flows from (used in) investing activities ........................      4,447,020             (620,757)
                                                                                 ------------         ------------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Principal payments on mortgage loan payable ...............................       (218,471)            (140,287)
   Distributions to minority interest partners ...............................        (17,316)              (6,280)
   Contributions from minority interest partners .............................            466                7,624
                                                                                 ------------         ------------
   Net cash flows used in financing activities ...............................       (235,321)            (138,943)
                                                                                 ------------         ------------

NET CHANGE IN CASH AND CASH EQUIVALENTS ......................................      6,457,747            1,829,630

CASH AND CASH EQUIVALENTS--Beginning of period ...............................     18,591,149           26,615,645
                                                                                 ------------         ------------

CASH AND CASH EQUIVALENTS--End of period .....................................   $ 25,048,896         $ 28,445,275
                                                                                 ============         ============

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the quarter for interest ....................................   $    619,641         $    490,084
                                                                                 ============         ============
</TABLE>

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

                                        9
<PAGE>


           THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

                             SCHEDULE OF INVESTMENTS

<TABLE>
<CAPTION>
                                                          MARCH 31, 2003 (UNAUDITED)              DECEMBER 31, 2002
                                                        -----------------------------      ------------------------------
                                                                            ESTIMATED                          ESTIMATED
                                                                             MARKET                             MARKET
                                                            COST              VALUE             COST             VALUE
--------------------------------------------------------------------------------------------------------------------------
REAL ESTATE AND IMPROVEMENTS--
   PERCENTAGE OF NET ASSETS.........................                           102.8%                              106.7%

Location                Description
--------------------------------------------------------------------------------------------------------------------------
<S>                     <C>                              <C>              <C>               <C>               <C>
Lisle, IL               Office Building  ...........     $22,857,236      $12,499,988       $22,857,236       $13,854,988
Atlanta, GA             Garden Apartments ..........      15,732,001       17,510,490        15,715,772        17,523,063
Roswell, GA             Retail Shopping Center .....      33,041,816       25,517,455        32,895,282        24,903,969
Raleigh, NC             Garden Apartments ..........      15,943,836       17,500,000        15,943,836        17,502,998
Brentwood, TN           Office Building  ...........      10,320,577        9,299,963        10,320,613         9,651,831
Oakbrook Terrace, IL    Office Building  ...........      14,268,474        9,946,511        14,205,396        11,213,142
Beaverton, OR           Office Building  ...........      11,890,209       10,600,005        11,890,209        10,800,005
Salt Lake City, UT      Industrial Building ........              --               --         6,599,482         5,202,646
Aurora, CO              Industrial Building ........      10,345,693        9,900,003        10,294,784        10,557,058
Brentwood, TN           Office Building  ...........       9,837,483        7,011,338         9,826,195         7,709,345
*Jacksonville, FL       Garden Apartments...........      19,755,460       19,800,000        19,745,855        19,800,000
*Gresham/Salem, OR      Garden Apartments...........      18,871,196       18,600,000        18,838,570        18,600,000
*Hampton, VA            Retail Shopping Center .....      16,447,831       19,300,000        16,446,909        19,300,000
*Ocean City, MD         Retail Shopping Center .....      10,297,434       10,600,000        10,012,138        10,012,138
                                                        ------------     ------------      ------------      ------------
                                                        $209,609,246     $188,085,753      $215,592,277      $196,631,183
                                                        ============     ============      ============      ============

REAL ESTATE PARTNERSHIP --
   PERCENTAGE OF NET ASSETS.........................                             5.1%                                4.9%
Location                Description
--------------------------------------------------------------------------------------------------------------------------
   Kansas City, KS; MO  Retail Shopping Centers ....     $10,623,116       $9,362,698        $9,931,394        $8,978,324
                                                        =================================================================

*Real estate partnerships accounted for by the consolidation method.

<CAPTION>
                                                                                       MARCH 31, 2003
                                                                                         (UNAUDITED)            DECEMBER 31, 2002
                                                                                 -------------------------  ------------------------
                                                                       FACE                    ESTIMATED                  ESTIMATED
                                                                      AMOUNT        COST      MARKET VALUE      COST    MARKET VALUE
                                                                   -----------   -----------   -----------  -----------  -----------
<S>                                                                <C>           <C>           <C>          <C>          <C>
CASH AND CASH EQUIVALENTS--PERCENTAGE OF NET ASSETS .............                                    13.7%                     10.1%
Federal Home Loan Banks, 1.28%, April 1, 2003 ...................  $13,045,000   $13,044,536   $13,044,536  $        --  $        --
Federal Home Loan Banks, 1.20%, May 7, 2003 .....................   11,099,000    11,076,062    11,076,062           --           --
Federal National Mortgage Assoc., 1.00%, January 02, 2003 .......    6,928,000            --            --    6,927,615    6,927,615
Federal National Mortgage Assoc., 1.27%, January 17, 2003 .......    1,218,000            --            --    1,217,055    1,217,055
Federal Home Loan Mortgage Corp., 1.27%, January 21, 2003 .......    3,461,000            --            --    3,457,581    3,457,581
Federal National Mortgage Assoc., 1.27%, January 21, 2003 .......    1,288,000            --            --    1,286,819    1,286,819
Federal National Mortgage Assoc., 1.22%, February 10, 2003 ......    1,000,000            --            --      998,611
                                                                                                                             998,611
Federal National Mortgage Assoc., 1.22%, February 13, 2003 ......    2,070,000            --            --    2,066,913
                                                                                                                           2,066,913
Federal Farm Credit Banks, 1.22%, February 14, 2003 .............    1,870,000            --            --    1,867,148    1,867,148
                                                                   -----------   -----------   -----------  -----------  -----------
TOTAL CASH EQUIVALENTS ..........................................                24,120,598    24,120,598    17,821,742   17,821,742
CASH ............................................................                   928,298       928,298       769,407      769,407
                                                                                 -----------   -----------  -----------  -----------
TOTAL CASH AND CASH EQUIVALENTS .................................                $25,048,896   $25,048,896  $18,591,149  $18,591,149
                                                                                 ===========   ===========  ===========  ===========
</TABLE>


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

                                        10
<PAGE>


                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS OF

             PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

                             MARCH 31, 2003 AND 2002

                                   (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
of normal recurring  adjustments)  considered  necessary for a fair presentation
have been included.  Operating results for the three months ended March 31, 2003
are not necessarily  indicative of the results that may be expected for the year
ended  December  31,  2003.  For  further  information,  refer to the  financial
statements and notes thereto included in each Partner's December 31, 2002 Annual
Report on Form 10K.

FASB Interpretation No. 46, "Consolidation of Variable Interest Entities", ("FIN
46") was issued in January 2003. FIN 46 applies immediately to variable interest
entities  created or for which an interest is acquired  after  January 31, 2003.
For all interests in variable  interest  entities  acquired  before  February 1,
2003,  FIN 46 goes into effect for periods  beginning  after June 15, 2003.  The
Partnership is evaluating the extent to which our equity  investment may need to
be consolidated as a result of this Interpretation.  The Partnership's  exposure
to losses  associated  with this equity joint venture is limited to its carrying
value in this investment.


NOTE 2: COMMITMENT FROM PARTNER

In 1986, the Prudential Insurance Company of America ("Prudential") committed to
fund up to $100 million to enable the Prudential Variable Contract Real Property
Partnership ("Partnership") to acquire real estate investments. Contributions to
the Partnership  under this commitment were utilized for property  acquisitions,
and could be  returned  to  Prudential  on an ongoing  basis  from the  contract
owners' net contributions  and other available cash. This commitment  terminated
on December 31, 2002.  Prudential did not make any contributions during the 2002
fiscal year.  During the period that this  commitment was in effect,  Prudential
funded $44 million.


NOTE 3:  RELATED PARTY TRANSACTIONS

Pursuant  to  an  investment  management   agreement,   Prudential  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 three months
ended  March  31,  2003 and 2002  investment  management  fees  incurred  by the
Partnership were $577,586 and $618,236 respectively.

The Partnership also reimburses Prudential for certain  administrative  services
rendered by  Prudential.  The amounts  incurred for the three months ended March
31,  2003  and  2002  were  $29,157  for  each  period,  and are  classified  as
administrative expense in the Consolidated Statements of Operations.

                                        11
<PAGE>


                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS OF

             PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

                             MARCH 31, 2003 AND 2002

                                   (UNAUDITED)

NOTE 4: FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
                                                                                      FOR THE THREE MONTHS ENDED
                                                                                 MARCH 31, 2003       MARCH 31, 2002
                                                                                 --------------       --------------
<S>                                                                                  <C>                  <C>
PER SHARE (UNIT) OPERATING PERFORMANCE:
Net Asset Value, beginning of period .........................................       $24.11               $23.82
                                                                                     ------               ------
INCOME FROM INVESTMENT OPERATIONS:
Net Investment income, before management fee .................................       $ 0.39               $ 0.42
Management fee ...............................................................        (0.08)               (0.07)
Net realized and unrealized (loss) gain on investments .......................        (0.49)               (0.45)
                                                                                     ------               ------
Net Decrease in Net Assets Resulting from Operations .........................        (0.18)               (0.10)
                                                                                     ------               ------
NET ASSET VALUE, END OF PERIOD ...............................................       $23.93               $23.72
                                                                                     ======               ======
TOTAL RETURN BEFORE MANAGEMENT FEE (a): ......................................        (0.45)%              (0.12)%

RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (in millions) ......................................       $  183               $  197
   Ratios to average net assets (b):
      Management Fee .........................................................         0.31%                0.31%
      Net Investment Income, before Management Fee ...........................         1.60%                1.80%
</TABLE>

(a)  Total Return  before  Management  Fee is  calculated  by 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 period net assets.

                                        12
<PAGE>


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

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

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

(A)  LIQUIDITY AND CAPITAL RESOURCES

As of March 31, 2003,  the  Partnership's  liquid assets  consisting of cash and
cash  equivalents  were $25.0  million,  an increase of $6.4  million from $18.6
million at December 31, 2002.  This increase was primarily due to an increase in
net cash flows from operations and the sale of the industrial  property  located
in Salt Lake City,  Utah on January 28, 2003.  Sources of liquidity  include net
cash flow from property operations, interest from short-term investments, sales,
and financing.

The  Partnership's  investment  policy  allows up to 30%  investment in cash and
short-term  obligations,  although the Partnership generally holds approximately
10% of its assets in cash and short-term  obligations.  At March 31, 2003, 11.0%
of the Partnership's total assets consisted of cash and short-term obligations.

In 1986, the Prudential Insurance Company of America ("Prudential") committed to
fund up to $100  million  to enable  the  Partnership  to  acquire  real  estate
investments.  Contributions  to the Prudential  Variable  Contract Real Property
Partnership  ("Partnership")  under this  commitment  were utilized for property
acquisitions,  and could be returned to  Prudential on an ongoing basis from the
contract  owners' net  contributions  and other  available cash. This commitment
terminated  on December  31,  2002.  Prudential  did not make any  contributions
during the 2002  fiscal  year.  During the period  that this  commitment  was in
effect, Prudential funded $44 million.

The Partnership did not make any  distributions to the Partners during the first
quarter of 2003 or 2002.  Distributions  may be made to the Partners during 2003
based upon the percentage of assets invested in short-term  obligations,  taking
into consideration anticipated cash needs of the Partnership including potential
property   acquisitions,   property   dispositions  and  capital   expenditures.
Management anticipates that its current liquid assets and ongoing cash flow from
operations will satisfy the Partnership's  needs over the next twelve months and
the foreseeable future.

During the first three months of 2003, the Partnership spent  approximately $0.6
million in capital  expenditures  on wholly owned and  consolidated  properties.
Approximately  $0.3 million was  associated  with the  development of the retail
center located in Ocean City,  Maryland.  The remaining $0.3 million balance was
primarily  associated  with  leasing at the retail  center  located in  Roswell,
Georgia,  the industrial  building located in Aurora,  Colorado,  and the office
located in Oakbrook  Terrace,  Illinois.  The  Partnership  also  increased  its
investment  in  real  estate  partnerships  by  approximately  $0.6  million  in
connection with the redevelopment and expansion of the retail centers located in
Kansas  City,  Missouri.

(B)  RESULTS OF OPERATIONS

The following is a brief comparison of the  Partnership's  results of operations
for the quarters ended March 31, 2003 and 2002.

                                        13
<PAGE>


MARCH 31, 2003 VS. MARCH 31, 2002


The following  table  presents a  year-to-date  comparison of the  Partnership's
sources of net investment income, and realized and unrealized gains or losses by
investment type.

<TABLE>
<CAPTION>
                                                                                       QUARTER ENDED MARCH 31,
                                                                                       2003              2002
                                                                                    -----------       -----------
<S>                                                                                 <C>               <C>
NET INVESTMENT INCOME:
Office properties ............................................................      $   646,699       $ 1,351,604
Apartment complexes ..........................................................          874,685           827,866
Retail property ..............................................................          981,987           974,127
Industrial properties ........................................................          225,850           433,304
Equity in income of real estate partnership ..................................          160,736            76,042
Other (including interest income,
investment mgt fee, etc.) ....................................................         (513,715)         (737,025)
                                                                                    -----------       -----------
TOTAL NET INVESTMENT INCOME ..................................................      $ 2,376,242       $ 2,925,918
                                                                                    ===========       ===========
NET UNREALIZED LOSS ON REAL ESTATE INVESTMENTS:
Office properties ............................................................      $(3,945,836)      $(1,471,473)
Apartment complexes ..........................................................           66,284          (819,619)
Retail property ..............................................................          652,388        (1,492,454)
Industrial properties ........................................................         (707,964)          386,434
Interest in real estate partnership ..........................................         (307,348)         (381,133)
                                                                                    -----------       -----------
TOTAL NET UNREALIZED LOSS ON REAL ESTATE INVESTMENTS .........................       (4,242,476)       (3,778,245)
                                                                                    -----------       -----------

                                                                                       QUARTER ENDED MARCH 31,
                                                                                       2003              2002
                                                                                    -----------       -----------
NET REALIZED GAIN (LOSS) ON REAL ESTATE INVESTMENTS:
Industrial properties ........................................................          466,061              --
Real estate investment trust .................................................             --              (1,578)
                                                                                    -----------       -----------
TOTAL NET REALIZED GAIN (LOSS) ON REAL ESTATE INVESTMENTS ....................          466,061            (1,578)
                                                                                    -----------       -----------
NET REALIZED AND UNREALIZED LOSS ON REAL ESTATE INVESTMENTS ..................       (3,776,415)      $(3,779,823)
                                                                                    ===========       ===========
</TABLE>

The  Partnership's net investment income for the period ended March 31, 2003 was
$2.4 million,  a decrease of $0.5 million from $2.9 million when compared to the
corresponding  period in 2002. The decrease is primarily due to the occupancy at
one of the Brentwood, Tennessee properties decreasing to 0% from 100% due to the
move-out of the single  tenant,  decreased  occupancy at the  Oakbrook  Terrace,
Illinois  property,  and the sales of the industrial  properties in Bolingbrook,
Illinois and Salt Lake City, Utah.

Equity in income of real estate partnership was $0.2 million for the first three
months of 2003, an increase of $0.1 million, or 111.4%, from $0.1 million in the
corresponding  period in 2002.  This  increase  is due to an increase in revenue
associated  with  expansion of the existing  grocery store anchor that commenced
during the fourth quarter of 2001. It is anticipated that upon completion,  both
occupancy and rental rates would increase.

Interest on  short-term  investments  decreased  approximately  $0.04 million or
38.3% for the quarter ended March 31, 2003 due primarily to a lower average cash
balance when compared to the corresponding period in 2002.

Administrative  expense  increased  $0.1 million,  or 20.2%,  in the first three
months of 2003 compared to the  corresponding  period in 2002.  These  increases
were primarily due to the  Partnership's  acquisition of a retail center located
in  Ocean  City,  Maryland  in late  2002.  Also  there  were  increases  at the
Jacksonville,  Florida and Raleigh,  North Carolina  apartment  complexes due to
increased occupancy.

Interest expense increased $0.1 million,  or 18.6%, in the first three months of
2003 compared to the  corresponding  period in 2002. This increase was primarily
due to the Partnership's  assumption a $7.4 million mortgage loan in conjunction
with the  acquisition  of a controlling  interest in a retail center  located in
Ocean City, Maryland in late 2002.

Minority interest expense increased $0.07 million, or 112.1%, in the first three
months of 2003 compared to the  corresponding  period in 2002. This increase was
primarily due to the  Partnership's  acquisition of a controlling  interest in a
retail center located in Ocean City, Maryland in late 2002.

                                        14
<PAGE>


The  Partnership  experienced  a net  unrealized  loss of $4.2  million  for the
quarter ended March 31, 2003 compared to a net  unrealized  loss of $3.8 million
during the corresponding  period in 2002. The unrealized losses during the first
quarter  of  2003  were  experienced  in  the  office,   industrial  and  equity
partnership  sectors.  The office properties recorded an unrealized loss of $3.9
million  primarily due to the  buildings  located in Lisle,  Illinois,  Oakbrook
Terrace, Illinois, and Brentwood, Tennessee; decreases in occupancy coupled with
softening  market  conditions have resulted in reductions in market rental rates
and increased leasing costs. The industrial site in Aurora, Colorado experienced
an  unrealized  loss of $0.7  million for the first three  months of 2003 due to
decreases in market rental rates. The equity partnership sector also experienced
a net unrealized loss of $0.3 million primarily due to capital expenditures that
were not reflected as an increase in market value.  Offsetting these losses were
unrealized  gains of $0.7 million in the retail  sector due to a major tenant at
the Roswell, Georgia retail center renewing their lease.

OFFICE PROPERTIES

Net investment  income from property  operations for the office sector decreased
approximately $0.7 million,  or 52.2%, for the quarter ended March 31, 2003 when
compared to the corresponding  period in 2002. Decreases in occupancy at the one
of the Brentwood, Tennessee properties and the Oakbrook Terrace, Illinois office
property were the primary  reason that net investment  income  decreased for the
office sector.

The five office properties owned by the Partnership experienced a net unrealized
loss of  approximately  $3.9 million  during the first three months of 2003. The
Lisle, Illinois property experienced a net unrealized loss of approximately $1.4
million  primarily due to decreased  occupancy,  increased  lease-up costs,  and
lower market rents. The Oakbrook Terrace,  Illinois  property  experienced a net
unrealized loss of approximately  $1.3 million primarily due to softening market
conditions  and the lease  expiration of a major tenant.  One of the  Brentwood,
Tennessee  properties  experienced a net unrealized loss of  approximately  $0.7
million  primarily  due to softening  market  conditions.  The other  Brentwood,
Tennessee  property  experienced a net  unrealized  loss of  approximately  $0.3
million primarily due to softening market conditions and increased expenses. The
office property located in Beaverton,  Oregon  experienced an unrealized loss of
approximately $0.2 million due to the lease expiration of one of the tenants.

The five office properties owned by the Partnership experienced a net unrealized
loss of approximately $1.5 million during the first three months of 2002. One of
the  Brentwood,  Tennessee  properties  experienced  a net  unrealized  loss  of
approximately  $1.1  million  primarily  due to  the  near-term  expiration  and
expected  move-out  of the  single  tenant at the  property  in July  2002.  The
Oakbrook Terrace, Illinois and the other Brentwood,  Tennessee office properties
experienced  net  unrealized  losses  of  approximately  $0.4  million  and $0.2
million,  respectively,  primarily  due to a reduction in market rental rates at
the Oakbrook Terrace, Illinois property and an increase in operating expenses at
the Brentwood,  Tennessee  property.  Offsetting these unrealized  losses was an
unrealized gain of approximately  $0.2 million at the office property located in
Beaverton, Oregon. This unrealized gain was attributable to a slight increase in
average market rent.

Occupancy at one of the Brentwood,  Tennessee office  properties  increased from
69% at March 31, 2002 to 78% at March 31, 2003. The other  Brentwood,  Tennessee
office property  occupancy  decreased from 100% at March 31, 2002 to 0% at March
31, 2003. Occupancy at the Beaverton, Oregon office property decreased from 100%
at March 31, 2002 to 81% at March 31,  2003.  Occupancy  at the Lisle,  Illinois
decreased from 100% at March 31, 2002 to 47% at March 31, 2003. Occupancy at the
Oakbrook Terrace,  Illinois decreased from 79% at March 31, 2002 to 31% at March
31, 2003. As of March 31, 2003 all vacant spaces were being marketed.

APARTMENT COMPLEXES

Net investment income from property operations for the apartment sector was $0.9
million for the quarter  ended March 31, 2003, a decrease of $0.05  million,  or
5.7%, when compared to the corresponding period in 2002.

The apartment  complexes owned by the  Partnership  experienced a net unrealized
gain of $0.1  million  for the quarter  ended  March 31, 2003  compared to a net
unrealized  loss of $0.8  million for the  quarter  ended  March 31,  2002.  The
unrealized gain for 2003 was  attributable  to the apartment  complex located in
Jacksonville, Florida due to an increase in occupancy.

                                        15
<PAGE>


Of the unrealized  loss  experienced in the first quarter of 2002,  $0.6 million
was due to an  increase in expenses at the  Raleigh,  North  Carolina  apartment
complex.  The apartment  complex located in Atlanta,  Georgia also experienced a
net  unrealized  loss of  approximately  $0.4  million due to  softening  market
conditions,  which  have  resulted  in lower  short-term  occupancy  and  income
projections,  and increased rent  concessions.  The apartment complex located in
Jacksonville,  Florida  experienced  an  unrealized  loss of $0.2 million due to
softening market conditions, which have resulted in reduced occupancy levels and
lower  market  rents.  Offsetting  these  unrealized  losses  was the  apartment
portfolio located in Gresham/Salem,  Oregon,  which experienced a net unrealized
gain of $0.4 million primarily due to an increase in market rents.

Occupancy at the Atlanta,  Georgia complex  increased from 73% at March 31, 2002
to 88% at March 31,  2003.  Occupancy  at the Raleigh,  North  Carolina  complex
increased from 83% at March 31, 2002 to 95% at March 31, 2003.  Occupancy at the
apartment complex in Jacksonville,  Florida increased from 86% at March 31, 2002
to 94% at March 31, 2003.  Occupancy at the Gresham and Salem,  Oregon apartment
complexes  decreased  from 93% at March 31, 2002 to 91% at March 31, 2003. As of
March  31,  2003,  all  available  vacant  units  were  being  marketed.

RETAIL PROPERTIES

Net investment income for the Partnership's  retail properties was approximately
$1.0  million  for the quarter  ended  March 31, 2003 and for the quarter  ended
March 31, 2002.

The retail properties  experienced a net unrealized gain of $0.7 million for the
quarter ended March 31, 2003 and a net  unrealized  loss of $1.5 million for the
quarter  ended March 31, 2002.  The retail  center  located in Roswell,  Georgia
experienced a net unrealized  gain of $0.5 million for the first three months of
2003 due to a major tenant signing a lease  renewal.  The retail center in Ocean
City,  Maryland also  experienced a net unrealized  gain of $0.2 million for the
first three  months of 2003 due to an increase in value  resulting  from capital
expenditures.

The net unrealized loss of $1.5 million experienced by the retail properties for
the three months  ended March 31, 2002 was  primarily  due to the retail  center
located in Roswell,  Georgia.  This center  experienced a net unrealized loss of
$1.4 million for the first  quarter of 2002 due to  increased  risk that a major
tenant  would not renew its lease,  coupled with a  deterioration  in the market
position of the property.  The retail center  located in Hampton,  Virginia also
experienced an unrealized  loss of $0.1 million due to capital  expenditures  at
the property that were not reflected as an increase in market value.

Occupancy at the shopping center located in Hampton, Virginia increased from 97%
at March 31, 2002 to 100% at March 31, 2003.  Occupancy  at the shopping  center
located in Roswell, Georgia increased from 92% at March 31, 2002 to 93% at March
31,  2003.  Occupancy at the retail  center in Ocean City,  Maryland was 100% at
March 31, 2003. As of March 31, 2003, all vacant spaces were being marketed.

INDUSTRIAL PROPERTIES

Net investment  income from property  operations  for the industrial  properties
decreased from $0.4 million for quarter ended March 31, 2002 to $0.2 million for
the  corresponding  quarter ended March 31, 2003.  The majority of this decrease
was due to the sale of the industrial property located in Bolingbrook,  Illinois
during the third quarter of 2002 and the January 28, 2003 sale of the industrial
property located in Salt Lake City, Utah.

The Aurora,  Colorado industrial property owned by the Partnership experienced a
net unrealized  loss of  approximately  $0.7 million for the quarter ended March
31, 2003 compared to a net unrealized gain of approximately $0.4 million for the
quarter  ended  March  31,  2002.  The  value  loss is due to  softening  market
conditions.

The three  industrial  properties  owned by the  Partnership  experienced  a net
unrealized gain of  approximately  $0.4 million for the three months ended March
31, 2002. The majority of the unrealized  gain in 2002 was  attributable  to the
Aurora,  Colorado industrial  property.  This gain of approximately $0.5 million
was due to an  increase  in market  rents.  The Salt Lake  City,  Utah  facility
experienced a net unrealized loss of $0.1 million due to capital expenditures at
the property that were not reflected as an increase in market value.

On January 28, 2003 the industrial  property located in Salt Lake City, Utah was
sold for a realized gain of $0.5 million.

                                        16
<PAGE>


The Aurora,  Colorado property's  occupancy rate increased from 75% at March 31,
2002 to 84% at March 31,  2003.  As of March 31,  2003,  all vacant  spaces were
being marketed.

EQUITY IN INCOME OF REAL ESTATE PARTNERSHIP

During the quarter ended March 31, 2003,  income from the investment  located in
Kansas City, Kansas and Missouri amounted to $0.2 million, an increase of 111.4%
from $0.1 million at March 31, 2002. The increase in the quarter-to-date  equity
in income of real estate partnership is due to an increase in revenue associated
with expansion of the existing  grocery store anchor that  commenced  during the
fourth quarter of 2001. It is anticipated that upon  completion,  both occupancy
and rental rates will increase.

The equity  investment  experienced a net unrealized  loss of $0.3 million and a
net  unrealized  loss of $0.4 million for the quarters  ended March 31, 2003 and
2002,  respectively.  The unrealized  loss of $0.3 million for the quarter ended
March 31, 2003 and the  unrealized  loss of $0.4  million for the quarter  ended
March 31,  2002 was  primarily  due to  renovations  from the  expansion  of the
existing  grocery  store anchor that were not reflected as an increase in market
value.

The retail portfolio  located in Kansas City, Kansas and Missouri had an average
occupancy of 88% at March 31, 2002, which increased to 90% at March 31, 2003. As
of March 31,  2003,  all vacant  spaces  were being  marketed.

OTHER

Other net  investment  income  increased  $0.2 million  during the quarter ended
March  31,  2003  compared  to the  corresponding  period  in  2002.  Other  net
investment  income  includes   interest  income  from  short-term   investments,
investment management fees, and expenses not related to property activities.

(C)  INFORMATION CONCERNING FORWARD-LOOKING STATEMENTS

Certain  statements  contained in  Management's  Discussion  and Analysis may be
considered  forward-looking  statements.  Words such as  "expects",  "believes",
"anticipates",  "intends",  "plans",  or  variations of such words are generally
part of forward-looking  statements.  Forward-looking  statements are made based
upon   management's   current   expectations  and  beliefs   concerning   future
developments and their potential  effects upon the Partnership.  There can be no
assurance  that future  developments  affecting  the  Partnership  will be those
anticipated by management.  There are certain important factors that could cause
actual results to differ materially from estimates or expectations  reflected in
such forward-looking statements including without limitation, changes in general
economic conditions, including the performance of financial markets and interest
rates; market acceptance of new products and distribution channels; competitive,
regulatory  or tax changes that affect the cost or demand for the  Partnership's
products;  and adverse  litigation  results.  While the  Partnership  reassesses
material trends and uncertainties  affecting its financial  position and results
of  operations,   it  does  not  intend  to  review  or  revise  any  particular
forward-looking   statement  referenced  in  this  Management's  Discussion  and
Analysis in light of future  events.  Readers  should  consider the  information
referred to above when  reviewing any  forward-looking  statements  contained in
this Management's Discussion and Analysis.

(D)  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 accounting principles
generally  accepted in the United States of America  requires the application of
accounting  policies  that  often  involve a  significant  degree  of  judgment.
Management, on an ongoing basis, reviews critical estimates and assumptions.  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  Consolidated
Financial Statements may change significantly.

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

                                        17
<PAGE>


VALUATION OF INVESTMENTS

REAL  ESTATE  INVESTMENTS--The  Partnership's  investments  in real  estate  are
initially valued at their purchase price.  Thereafter,  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.  The Chief Real Estate Appraiser of Prudential Investment Management
is  responsible  to assure that the  valuation  process  provides  objective and
accurate market value estimates.

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 for self interest,  and assuming that neither is
under undue duress.

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.

As described  above,  the estimated  market value of real estate and real estate
related  assets is  determined  through an appraisal  process.  These  estimated
market  values may vary  significantly  from the prices at which the real estate
investments  would sell since 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
these estimated market values are reasonable approximations of market prices and
the  aggregate  value of  investments  in real estate is fairly  presented as of
March 31, 2003 and December 31, 2002.

OTHER ESTIMATES

The preparation of financial statements in conformity with accounting principles
generally  accepted in the United States of America 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 about 33.08% 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 rare circumstances.

The table below presents the amounts and related weighted  interest rates of the
Partnership's cash equivalents and short-term investments at March 31, 2003:

                                             ESTIMATED MARKET
                                                   VALUE           AVERAGE
                               MATURITY       (IN $ MILLIONS)   INTEREST RATE
                              ----------     ----------------   -------------
Cash equivalents..........    0-3 months           $25.0            1.24%



                                        18
<PAGE>


The table below discloses the  Partnership's  fixed and variable rate debt as of
March 31, 2003.  Approximately $25.7 million 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.  The interest  rate on the variable  rate debt is
equal to the 6-month  Treasury  rate plus 1.565%.  It is subject to a maximum of
11.345% and a minimum of 2.345%.  The interest rate on the variable rate debt as
of March 31, 2003 was 3.235%.

<TABLE>
<CAPTION>
MARCH 31, 2003
DEBT (IN $ THOUSANDS),             4/1/2003-                                                                 ESTIMATED
INCLUDING CURRENT PORTION         12/31/2003   2004      2005       2006      2007   THEREAFTER     TOTAL   FAIR VALUE
-------------------------         ----------   ----      ----       ----      ----   ----------     -----   ----------
<S>                                  <C>       <C>      <C>         <C>       <C>      <C>         <C>        <C>
Average Fixed Interest Rate......    7.43%     7.46%      7.47%       7.16%   7.18%       6.75%       7.79%
Fixed Rate.......................    $506      $719     $  774     $ 8,479    $588     $14,624     $25,690    $26,580
Variable Rate....................     178       242        250       9,121      --          --       9,791      9,548
                                  ------------------------------------------------------------------------------------
Total Mortgage Loans Payable.....    $684      $961     $1,024     $17,600    $588     $14,624     $35,481    $36,128
                                  ------------------------------------------------------------------------------------
</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,  defaults  could
increase and result in losses to the  Partnership,  which would adversely affect
its operating results and liquidity.


ITEM 4. CONTROLS AND PROCEDURES

Within the 90-day period prior to the filing of this report,  an evaluation  was
carried out under the  supervision and with the  participation  of the Company's
management,  including our Chief Executive Officer and Chief Financial  Officer,
of the effectiveness of the design and operation of our disclosure  controls and
procedures,  as defined in Rule 15d under the  Securities  and  Exchange  Act of
1934.  Based  upon  that  evaluation,  the  Chief  Executive  Officer  and Chief
Financial  Officer  concluded that the design and operation of these  disclosure
controls and procedures were effective.  No significant changes were made in our
internal  controls or in other  factors  that could  significantly  affect these
controls subsequent to the date of their evaluation.

                                        19
<PAGE>


                                     PART II


ITEM 5. 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 AND REPORTS ON FORM 8-K

(A)   EXHIBITS

      2.    Not applicable.

      3.1   Amended Articles of Incorporation of Pruco Life Insurance Company of
            New Jersey filed as Exhibit  1.A.(6)(a) to Post Effective  Amendment
            No. 17 to Form S-6, Registration  Statement No. 2-89780, filed March
            1, 1991, and incorporated herein by reference.

      3.2   Amended By-Laws of Pruco Life Insurance Company of New Jersey, filed
            as Exhibit  1.A.(6)(b)  to  Post-Effective  Amendment No. 17 to Form
            S-6,  Registration  Statement No. 2-89780,  filed March 1, 1991, and
            incorporated herein by reference.

      3.3   Resolution of the Board of Directors  establishing the Pruco Life of
            New Jersey Variable Contract Real Property Account, filed as Exhibit
            (3C)  to  Form  S-1,  Registration  Statement  No.  33-20018,  filed
            February 5, 1988, and incorporated herein by reference.

      4.1   Variable  Life  Insurance  Contract  filed as  Exhibit  A(5) to Form
            N-8B-2,  Registration Statement No. 2-81243, filed January 10, 1983,
            and incorporated herein by reference.

      4.2   Revised  Variable  Appreciable  Life  Insurance  Contract with fixed
            death  benefit,   filed  as  Exhibit  1.A.(5)(c)  to  Post-Effective
            Amendment No. 5 to Form S-6,  Registration  Statement  No.  2-89780,
            filed July 11, 1986, and incorporated herein by reference.

      4.3   Revised Variable  Appreciable Life Insurance  Contract with variable
            death  benefit,   filed  as  Exhibit  1.A.(5)(d)  to  Post-Effective
            Amendment No. 5 to Form S-6,  Registration  Statement  No.  2-89780,
            filed July 11, 1986, and incorporated herein by reference.

      4.4   Single Premium Variable Annuity  Contract,  filed as Exhibit 4(i) to
            Form N-4, Registration Statement No. 2-99916, filed August 13, 1985,
            and incorporated herein by reference.

      4.5   Flexible Premium Variable Life Insurance Contract,  filed as Exhibit
            1.A.(5)  to Form S-6,  Registration  Statement  No.  2-99537,  filed
            August 8, 1985, and incorporated herein by reference.

      9.    None.

      10.1  Investment   Management  Agreement  between  Prudential   Investment
            Management,  Inc. and The Prudential Variable Contract Real Property
            Partnership,  filed as Post-Effective  Amendment No. 16 to Form S-1,
            Registration  Statement No.  33-20083-01,  filed April 10, 2003, and
            incorporated herein by reference.

      10.2  Service  Agreement  between  The  Prudential  Insurance  Company  of
            America and The Prudential Investment Corporation,  filed as Exhibit
            (10B)  to  Form  S-1,  Registration  Statement  No.  33-8698,  filed
            September 12, 1986, and incorporated herein by reference.

      10.3  Partnership  Agreement  of The  Prudential  Variable  Contract  Real
            Property  Partnership  filed  as  Exhibit  (10C)  to  Post-Effective
            Amendment No. 2 to Form S-1,  Registration  Statement No.  33-20018,
            filed April 6, 1990, and incorporated herein by reference.

      11.   Not applicable.

      12.   Not applicable.

      13.   None.

      18.   None.

                                        20
<PAGE>


      21.   Not applicable.

      22.   Not applicable.

      23.   None.

      24.   Not applicable.

      27.   Not applicable.

      99.1  Certification of President  required  pursuant to 18 U.S.C.  Section
            1350, as adopted pursuant to Section 906 of the  Sarbanes-Oxley  Act
            of 2002.

      99.2  Certification  of Chief Accounting  Officer required  pursuant to 18
            U.S.C.  Section  1350,  as adopted  pursuant  to Section  906 of the
            Sarbanes-Oxley Act of 2002.

B)    REPORT ON FORM 8-K

      None.

                                        21
<PAGE>


                                   SIGNATURES

Pursuant to the  requirements of Section 13 or 15(d) 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:     May 15, 2003                          By:  /s/ Andrew J. Mako
         --------------                             ---------------------------
                                                       Andrew J. Mako
                                                       President


Date:     May 15, 2003                          By:  /s/ William J. Eckert, IV
         --------------                             ---------------------------
                                                       William J. Eckert, IV
                                                       Chief Accounting Officer

                                        22
<PAGE>


                                 CERTIFICATIONS


I, Andrew J. Mako, certify that:

1. I have  reviewed  this  quarterly  report on Form  10-Q of Pruco  Life of New
Jersey Variable Contract Real Property Account;

2. Based on my  knowledge,  this  quarterly  report  does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report;

3. Based  on  my  knowledge,  the  financial  statements,  and  other  financial
information  included in this quarterly  report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4. The  registrant's  other  certifying  officers  and  I  are  responsible  for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

a) Designed  such  disclosure  controls and  procedures  to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others  within those  entities,  particularly  during the
period in which this quarterly report is being prepared;

b) Evaluated  the  effectiveness  of the  registrant's  disclosure  controls and
procedures  as of a date  within  90  days  prior  to the  filing  date  of this
quarterly report (the "Evaluation Date"); and

c) Presented in this quarterly report our conclusions about the effectiveness of
the  disclosure  controls  and  procedures  based  on our  evaluation  as of the
Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation,  to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):

a) All significant  deficiencies in the design or operation of internal controls
which  could  adversely  affect the  registrant's  ability  to record,  process,
summarize and report  financial data and have  identified  for the  registrant's
auditors any material weaknesses in internal controls; and

b) Any  fraud,  whether  or not  material,  that  involves  management  or other
employees who have a significant role in the registrant's internal controls; and

6. The  registrant's  other  certifying  officers  and I have  indicated in this
quarterly  report  whether or not there  were  significant  changes in  internal
controls or in other factors that could  significantly  affect internal controls
subsequent to the date of our most recent  evaluation,  including any corrective
actions with regard to significant deficiencies and material weaknesses.


Date: May 15, 2003


 /s/ Andrew J. Mako
-----------------------------
Andrew J. Mako
President

                                        23
<PAGE>


I, William J. Eckert, IV, certify that:

1. I have  reviewed  this  quarterly  report on Form  10-Q of Pruco  Life of New
Jersey Variable Contract Real Property Account;

2. Based on my  knowledge,  this  quarterly  report  does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report;

3. Based  on  my  knowledge,  the  financial  statements,  and  other  financial
information  included in this quarterly  report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4. The  registrant's  other  certifying  officers  and  I  are  responsible  for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

a) Designed  such  disclosure  controls and  procedures  to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others  within those  entities,  particularly  during the
period in which this quarterly report is being prepared;

b) Evaluated  the  effectiveness  of the  registrant's  disclosure  controls and
procedures  as of a date  within  90  days  prior  to the  filing  date  of this
quarterly report (the "Evaluation Date"); and

c) Presented in this quarterly report our conclusions about the effectiveness of
the  disclosure  controls  and  procedures  based  on our  evaluation  as of the
Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation,  to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):

a) All significant  deficiencies in the design or operation of internal controls
which  could  adversely  affect the  registrant's  ability  to record,  process,
summarize and report  financial data and have  identified  for the  registrant's
auditors any material weaknesses in internal controls; and

b) Any  fraud,  whether  or not  material,  that  involves  management  or other
employees who have a significant role in the registrant's internal controls; and

6. The  registrant's  other  certifying  officers  and I have  indicated in this
quarterly  report  whether or not there  were  significant  changes in  internal
controls or in other factors that could  significantly  affect internal controls
subsequent to the date of our most recent  evaluation,  including any corrective
actions with regard to significant deficiencies and material weaknesses.


Date: May 15, 2003


 /s/ William J. Eckert, IV
-----------------------------
William J. Eckert, IV
Chief Accounting Officer

                                        24