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

                                  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, 2004

                                       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 [ ]

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

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

<PAGE>

                   PRUCO LIFE OF NEW JERSEY VARIABLE CONTRACT
                              REAL PROPERTY ACCOUNT

                                  (REGISTRANT)

                                      INDEX
                                      -----

<TABLE>
<CAPTION>
                                                                                                                 PAGE
                                                                                                                 ----

<S>                                                                                                               <C>
Cover Page...................................................................................................      1

Index........................................................................................................      2

Forward-Looking Statement Disclosure.........................................................................      3

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, 2004 and December 31, 2003......................................      4

         Statements of Operations--Three Months Ended March 31, 2004 and 2003................................      4

         Statements of Changes in Net Assets--Three Months Ended March 31, 2004 and 2003.....................      4

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

B.   THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

         Consolidated Statements of Assets and Liabilities--

         March 31, 2004 and December 31, 2003................................................................      8

         Consolidated Statements of Operations--Three Months Ended March 31, 2004 and 2003...................      9

         Consolidated Statements of Changes in Net Assets--
         Three Months Ended March 31, 2004 and 2003..........................................................     10

         Consolidated Statements of Cash Flows--Three Months Ended March 31, 2004 and 2003...................     11

         Consolidated Schedules of Investments--March 31, 2004 and December 31, 2003.........................     12

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

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

Item 3.  Quantitative and Qualitative Disclosures About Market Risks.........................................     22

Item 4.  Controls and Procedures.............................................................................     22

PART II--OTHER INFORMATION
--------------------------

Item 4.  Submission of Matters to a Vote of Security Holders.................................................     23

Item 6.  Exhibits and Reports on Form 8-K....................................................................     23

Signature Page...............................................................................................     25
</TABLE>


                                       2
<PAGE>


FORWARD-LOOKING STATEMENT DISCLOSURE

Certain  of the  statements  included  in this  Quarterly  Report on Form  10-Q,
including but not limited to those in the  Management's  Discussion and Analysis
of Financial  Condition and Results of  Operations,  constitute  forward-looking
statements within the meaning of the U.S. Private  Securities  Litigation Reform
Act of 1995.  Words such as "expects",  "believes",  "anticipates",  "includes",
"plans", "assumes",  "estimates",  "projects",  "intends", or variations of such
words  are  generally  part  of  forward-looking   statements.   Forward-looking
statements  are made based on  management's  current  expectations  and  beliefs
concerning  future  developments  and their  potential  effects  upon Pruco Life
Insurance  Company of New Jersey ("the Company") or the Pruco Life of New Jersey
Variable Contract Real Property Account (the "Real Property Account"). There can
be no  assurance  that  future  developments  affecting  the Company or the Real
Property Account will be those anticipated by management.  These forward-looking
statements  are not a guarantee  of future  performance  and  involve  risks and
uncertainties,  and there are certain  important factors that could cause actual
results to differ, possibly materially, from expectations or estimates reflected
in  such  forward-looking  statements,  including  without  limitation:  general
economic,  market  and  political  conditions,   including  the  performance  of
financial markets, interest rate fluctuations and the continuing negative impact
of the current economic environment;  various domestic or international military
or terrorist  activities or conflicts;  economic  conditions in local markets in
which the properties in the Real Property Account are located; volatility in the
securities  markets;  reestimates of our reserves for future policy benefits and
claims; changes in our assumptions related to deferred policy acquisition costs;
our exposure to contingent  liabilities;  catastrophe losses;  investment losses
and defaults; changes in our claims-paying or credit ratings; competition in our
product lines and for personnel; fluctuations in foreign currency exchange rates
and foreign  securities  markets;  risks to our  international  operations;  the
impact of  changing  regulation  or  accounting  practices;  adverse  litigation
results;  and changes in tax law. The Company  does not intend,  and is under no
obligation to, update any particular  forward-looking statement included in this
document.


                                       3
<PAGE>


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

<TABLE>
<CAPTION>

STATEMENTS OF NET ASSETS
March 31, 2004 and December 31, 2003
                                                                                 MARCH 31, 2004
                                                                                   (UNAUDITED)       DECEMBER 31, 2003
                                                                                ----------------    -------------------
<S>                                                                                <C>                  <C>
ASSETS

Investment in The Prudential Variable Contract
  Real Property Partnership ................................................       $ 7,905,024          $ 7,846,237
                                                                                   -----------          -----------
Net Assets .................................................................       $ 7,905,024          $ 7,846,237
                                                                                   ===========          ===========
NET ASSETS, representing:
Equity of contract owners ..................................................       $ 5,893,980          $ 5,852,959
Equity of Pruco Life Insurance Company of New Jersey .......................         2,011,044            1,993,278
                                                                                   -----------          -----------
                                                                                   $ 7,905,024          $ 7,846,237
                                                                                   ===========          ===========
Units outstanding ..........................................................         3,524,963            3,519,859
                                                                                   ===========          ===========
Portfolio shares held ......................................................           318,217              318,217
Portfolio net asset value per share ........................................       $     24.84          $     24.66

STATEMENTS OF OPERATIONS
For the three months ended March 31, 2004 and 2003                             1/1/2004-3/31/2004   1/1/2003-3/31/2003
                                                                                   (UNAUDITED)          (UNAUDITED)
                                                                               ------------------   ------------------
INVESTMENT INCOME

Net investment income from Partnership operations ..........................       $    83,025          $   114,136
                                                                                   -----------          -----------
EXPENSES
Charges to contract owners for assuming mortality risk and
  expense risk and for administration ......................................             8,286                8,223
                                                                                   -----------          -----------
NET INVESTMENT INCOME ......................................................            74,739              105,913
                                                                                   -----------          -----------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Net change in unrealized gain (loss) on investments in Partnership .........           (24,237)            (203,776)
Net realized gain (loss) on sale of investments in Partnership .............                 0               22,386
                                                                                   -----------          -----------
NET GAIN (LOSS) ON INVESTMENTS .............................................           (24,237)            (181,390)
                                                                                   -----------          -----------
NET INCREASE (DECREASE) IN NET ASSETS
  RESULTING FROM OPERATIONS ................................................       $    50,502          $   (75,477)
                                                                                   ===========          ===========
STATEMENTS OF CHANGES IN NET ASSETS
For the three months ended March 31, 2004 and 2003                             1/1/2004-3/31/2004   1/1/2003-3/31/2003
                                                                                   (UNAUDITED)          (UNAUDITED)
                                                                               ------------------   ------------------
OPERATIONS

Net investment income                                                              $    74,739          $   105,913
Net change in unrealized gain (loss) on investments in Partnership                     (24,237)            (203,776)
Net realized gain (loss) on sale of investments in Partnership                               0               22,386
                                                                                   -----------          -----------
NET INCREASE (DECREASE) IN NET ASSETS
  RESULTING FROM OPERATIONS                                                             50,502              (75,477)
                                                                                   -----------          -----------
CAPITAL TRANSACTIONS

Net contributions by contract owners                                                     5,449                9,845
Net contributions (withdrawals) by Pruco Life Insurance Company of New Jersey            2,836               (1,622)
                                                                                   -----------          -----------
NET INCREASE (DECREASE) IN NET ASSETS
  RESULTING FROM CAPITAL TRANSACTIONS                                                    8,285                8,223
                                                                                   -----------          -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS                                                 58,787              (67,254)
NET ASSETS
Beginning of period                                                                  7,846,237            8,854,905
                                                                                   -----------          -----------
End of period                                                                      $ 7,905,024          $ 8,787,651
                                                                                   ===========          ===========
</TABLE>

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


                                       4
<PAGE>


                      NOTES TO THE FINANCIAL STATEMENTS OF

        PRUCO LIFE OF NEW JERSEY VARIABLE CONTRACT REAL PROPERTY ACCOUNT

                                 MARCH 31, 2004

                                   (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"),  a  wholly-owned  subsidiary  of  Prudential
Financial,  Inc. ("PFI") 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, 2004 and for the three months ended
March 31, 2004 and 2003 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, 2004 and
December 31, 2003 the Real Property  Account's  interest in the  Partnership was
4.3% or 318,217 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.


                                       5
<PAGE>


D. EQUITY OF PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

Pruco Life of New Jersey  maintains a position in the Real Property  Account 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: CHARGES AND EXPENSES

A. MORTALITY RISK AND EXPENSE RISK CHARGES

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

B. ADMINISTRATIVE CHARGES

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

C. COST OF INSURANCE AND OTHER RELATED CHARGES

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

D. DEFERRED SALES CHARGE

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,  but will not exceed 45% for VAL and 9% for SPVL.  No sales
charge will be imposed  after the sixth and tenth year of the  contract for SPVL
and VAL,  respectively.  No sales  charge will be imposed on death  benefits.  A
deferred sales charge is assessed through the redemption of units.

E. PARTIAL WITHDRAWAL CHARGE

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


                                       6
<PAGE>


NOTE 4: TAXES

Pruco Life of New Jersey is taxed as a "life  insurance  company"  as defined by
the  Internal  Revenue  Code.  The results of  operations  of the Real  Property
Account  form a part of PFI'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 5: NET CONTRIBUTIONS BY CONTRACT OWNERS

Contract owner activity for the real estate  investment  option in Pruco Life of
New Jersey's  variable  insurance  and variable  annuity  products for the three
months ended March 31, 2004 and 2003, were as follows:

                                                            MARCH 31,
                                                  2004                   2003
                                               ----------             ----------
                                                           (UNAUDITED)

VAL   ..................................        $(10,765)              $ (2,938)
VLI   ..................................            (864)                (7,326)
SPVA  ..................................               0                      0
SPVL  ..................................           6,180                    419
                                                --------               --------

TOTAL ..................................        $ (5,449)              $ (9,845)
                                                ========               ========

NOTE 6: PARTNERSHIP DISTRIBUTIONS

As of March 31, 2004, no  distributions  had been made for the current year from
the  Partnership.  For the year ended  December 31, 2003, the  Partnership  made
distributions  of $6.9  million.  The Pruco  Life of New  Jersey  Real  Property
Account's share of this distribution was $1.2 million.

NOTE 7: UNIT INFORMATION

Outstanding  units and unit values at March 31, 2004 and  December 31, 2003 were
as follows:

                                         MARCH 31, 2004        DECEMBER 31, 2003
                                        ----------------       -----------------
                                          (UNAUDITED)
UNITS OUTSTANDING:..................        3,524,963              3,519,859
UNIT VALUE:.........................   2.00065 to 2.33814     1.99197 to 2.32279


                                       7
<PAGE>


           THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

                CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
                                                                                MARCH 31, 2004
                                                                                  (UNAUDITED)       DECEMBER 31, 2003
                                                                                --------------      -----------------

<S>                                                                               <C>                  <C>
ASSETS

REAL ESTATE INVESTMENTS--At estimated market value:
   Real estate and improvements
      (cost: 3/31/2004--$225,375,104; 12/31/2003--$223,943,870)...........        $201,644,056         $201,144,866
   Real estate partnership (cost: 3/31/2004--$10,674,923;
      12/31/2003--$10,609,273)............................................           9,530,976            8,721,319
   Mortgage and other loans receivable (cost: 3/31/2004--$556,271;
      12/31/2003--$0).....................................................             556,271                   --
   Other real estate investments (cost: 3/31/2004--$4,281,644;
      12/31/2003--$500,000)...............................................           4,281,644              500,000
                                                                                  ------------         ------------
         Total real estate investments....................................         216,012,947          210,366,185
CASH AND CASH EQUIVALENTS.................................................          14,756,088           18,901,814
OTHER ASSETS, NET.........................................................           6,719,368            6,359,853
                                                                                  ------------         ------------
         Total assets.....................................................        $237,488,403         $235,627,852
                                                                                  ============         ============

LIABILITIES

MORTGAGE LOANS PAYABLE....................................................          43,758,882           43,934,494
ACCOUNTS PAYABLE AND ACCRUED EXPENSES.....................................           3,603,268            2,998,752
DUE TO AFFILIATES.........................................................             727,859            1,017,932
OTHER LIABILITIES.........................................................             937,444              947,110
MINORITY INTEREST.........................................................           5,456,926            5,086,503
                                                                                  ------------         ------------
         Total liabilities................................................          54,484,379           53,984,791
                                                                                  ------------         ------------
COMMITMENTS AND CONTINGENCIES
PARTNERS' EQUITY..........................................................         183,004,024          181,643,061
                                                                                  ------------         ------------
         Total liabilities and partners' equity...........................        $237,488,403         $235,627,852
                                                                                  ============         ============
NUMBER OF SHARES OUTSTANDING AT END OF PERIOD.............................           7,366,835            7,366,835
                                                                                  ============         ============
SHARE VALUE AT END OF PERIOD..............................................              $24.84               $24.66
                                                                                  ============         ============
</TABLE>

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


                                       8
<PAGE>


           THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                                  THREE MONTHS         THREE MONTHS
                                                                                      ENDED                ENDED
                                                                                 MARCH 31, 2004       MARCH 31, 2003
                                                                                 --------------       --------------
<S>                                                                                 <C>                 <C>
INVESTMENT INCOME:
   Revenue from real estate and improvements..............................          $6,484,513          $ 6,224,502
   Equity in income of real estate partnership............................             165,887              160,736
   Interest and equity income on mortgage loans receivable and
      other loans receivable..............................................               8,126                   --
   Income from other real estate investments..............................              31,644                   --
   Interest on short-term investments.....................................              43,177               65,414
   Other income...........................................................              51,000                   --
                                                                                    ----------          -----------
      Total investment income.............................................           6,784,347            6,450,652
                                                                                    ----------          -----------

INVESTMENT EXPENSES:
   Operating..............................................................           1,661,254            1,314,572
   Investment management fee..............................................             635,701              577,586
   Real estate taxes......................................................             722,033              667,791
   Administrative.........................................................           1,216,664              805,145
   Interest expense.......................................................             595,075              581,267
   Minority interest......................................................              31,557              128,049
                                                                                    ----------          -----------
      Total investment expenses...........................................           4,862,284            4,074,410
                                                                                    ----------          -----------

NET INVESTMENT INCOME.....................................................           1,922,063            2,376,242
                                                                                    ----------          -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON REAL ESTATE INVESTMENTS:

   Net proceeds from real estate investments sold.........................                  --            5,689,488
   Less: Cost of real estate investments sold.............................                  --            6,620,263
         Realization of prior periods' unrealized gain (loss) on real estate
            investments sold..............................................                  --           (1,396,836)
                                                                                    ----------          -----------
   Net gain (loss) realized on real estate investments sold...............                  --              466,061
                                                                                    ----------          -----------
   Change in unrealized gain (loss) on real estate investments............            (188,037)          (4,266,583)
   Less: Minority interest in unrealized gain (loss) on real estate investments        373,063              (24,107)
                                                                                    ----------          -----------
   Net unrealized gain (loss) on real estate investments..................            (561,100)          (4,242,476)
                                                                                    ----------          -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON REAL ESTATE
   INVESTMENTS............................................................            (561,100)          (3,776,415)
                                                                                    ----------          -----------
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...............          $1,360,963          $(1,400,173)
                                                                                    ==========          ===========
</TABLE>

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


                                       9
<PAGE>


           THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

                CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                                  THREE MONTHS         THREE MONTHS
                                                                                      ENDED                ENDED
                                                                                 MARCH 31, 2004       MARCH 31, 2003
                                                                                 --------------       --------------
<S>                                                                               <C>                  <C>
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS:
   Net investment income..................................................        $  1,922,063         $  2,376,242
   Net gain (loss) realized on real estate investments sold...............                  --              466,061
   Net unrealized gain (loss) from real estate investments................            (561,100)          (4,242,476)
                                                                                  ------------         ------------
      Increase (decrease) in net assets resulting from operations.........           1,360,963           (1,400,173)
                                                                                  ------------         ------------
INCREASE (DECREASE) IN NET ASSETS.........................................           1,360,963           (1,400,173)
NET ASSETS--Beginning of period............................................        181,643,061          184,353,506
                                                                                  ------------         ------------
NET ASSETS--End of period..................................................       $183,004,024         $182,953,333
                                                                                  ============         ============
</TABLE>

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


                                       10
<PAGE>


           THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
<TABLE>
<CAPTION>

                                                                                  THREE MONTHS         THREE MONTHS
                                                                                      ENDED                ENDED
                                                                                 MARCH 31, 2004       MARCH 31, 2003
                                                                                 --------------       --------------
<S>                                                                                <C>                 <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net increase (decrease) in net assets resulting from operations........         $ 1,360,963         ($ 1,400,173)
   Adjustments to reconcile net increase (decrease) in net assets to
      net cash flows from operating activities:
      Net realized and unrealized loss on investments.....................             561,100            3,776,415
      Equity in income of real estate partnership in excess of distributions            38,301              (86,486)
      Minority interest from operating activities.........................              31,557              128,049
      (Increase) Decrease in accrued interest included in other real
         estate investments...............................................             (31,644)                  --
      (Increase) Decrease in accrued interest included in mortgage and
         other loans receivable...........................................              (8,126)                  --
      Bad debt expense....................................................             136,932               33,661
      (Increase) Decrease in:
         Other assets.....................................................            (496,447)            (262,935)
      Increase (Decrease) in:
         Accounts payable and accrued expenses............................             262,198               66,697
         Due to affiliates................................................            (290,073)             (14,259)
         Other liabilities................................................              (9,666)               5,079
                                                                                   -----------          -----------
            Net cash flows from operating activities......................           1,555,095            2,246,048
                                                                                   -----------          -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Net proceeds from real estate investments sold.........................                  --            5,689,488
   Additions to real estate and improvements..............................          (1,088,916)            (637,232)
   Contribution to real estate partnership................................            (103,951)            (605,236)
   Origination of mortgage and other loans receivable.....................            (548,145)                  --
   Origination of other real estate investments...........................          (3,750,000)                  --
                                                                                   -----------          -----------
   Net cash flows from (used in) investing activities.....................          (5,491,012)           4,447,020
                                                                                   -----------          -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Principal payments on mortgage loan payable............................            (175,612)            (218,471)
   Distributions to minority interest partners............................             (34,197)             (17,316)
   Contributions from minority interest partners..........................                  --                  466
                                                                                   -----------          -----------
   Net cash flows used in financing activities............................            (209,809)            (235,321)
                                                                                   -----------          -----------

NET CHANGE IN CASH AND CASH EQUIVALENTS...................................          (4,145,726)           6,457,747

CASH AND CASH EQUIVALENTS--Beginning of period.............................         18,901,814           18,591,149
                                                                                   -----------          -----------

CASH AND CASH EQUIVALENTS--End of period...................................        $14,756,088          $25,048,896
                                                                                   ===========          ===========

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the quarter for interest.................................         $   612,727          $   619,641
                                                                                   ===========          ===========

SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND
   FINANCING ACTIVITIES:

Accrued construction costs................................................         $   342,318                   --
                                                                                   ===========          ===========
</TABLE>

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


                                       11
<PAGE>


           THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

                      CONSOLIDATED SCHEDULES OF INVESTMENTS
<TABLE>
<CAPTION>
                                                     TOTAL RENTABLE
                                                       SQUARE FEET      MARCH 31, 2004
                                                          UNLESS          (UNAUDITED)             DECEMBER 31, 2003
                                                        OTHERWISE  ------------------------  -------------------------
                                                        INDICATED                ESTIMATED                  ESTIMATED
PROPERTY NAME         OWNERSHIP      CITY, STATE       (UNAUDITED)    COST     MARKET VALUE     COST      MARKET VALUE
-------------        -----------     -----------        ---------  ----------- ------------  -----------  ------------
REAL ESTATE INVESTMENTS

<S>                      <C> <C>                        <C>        <C>          <C>          <C>           <C>
OFFICES
750 Warrenville          WO           Lisle, IL          103,193   $23,023,835  $10,005,984  $23,023,835   $12,110,725
Oakbrook Terrace         WO         Oakbrook, IL         123,734    14,639,027    9,747,954   14,619,120    10,097,932
Summit @ Cornell Oaks    WO         Beaverton, OR         72,109    11,890,209   10,000,005   11,890,209    10,000,005
Westpark                 WO         Brentwood, TN         97,199    10,423,727    9,200,000   10,423,727     9,239,260
Financial Plaza          WO         Brentwood, TN         95,768    10,276,615    7,573,450    9,837,482     6,700,041
----------------------------------------------------------------------------------------------------------------------
                               Offices % as of 3/31/04     25%      70,253,413   46,527,393   69,794,373    48,147,963

APARTMENTS
Brookwood Apartments     WO          Atlanta, GA        240 Units   15,794,665   17,303,403   15,781,263    17,000,000
Dunhill Trace Apartments WO          Raleigh, NC        250 Units   16,037,340   17,627,015   16,010,326    17,665,000
Riverbend Apartments     CJV      Jacksonville, FL      458 Units   19,957,421   22,400,000   19,946,920    22,400,000
SIMA Apartments          CJV      Gresham/Salem, OR     493 Units   19,288,814   17,700,000   19,281,738    17,975,000
----------------------------------------------------------------------------------------------------------------------
                             APARTMENTS % AS OF 3/31/04    41%      71,078,240   75,030,418   71,020,247    75,040,000

RETAIL
King's Market            WO         Rosewell, GA         314,358    33,112,287   23,509,840   33,102,401    23,539,665
Hampton Towne Center     WO          Hampton, VA         174,540    18,025,918   20,298,350   18,013,068    20,000,000
White Marlin Mall        CJV       Ocean City, MD        186,016    14,022,061   17,800,000   13,198,649    15,900,000
Kansas City Portfolio    EJV     Kansas City, KS;MO      487,660    10,674,923    9,530,976   10,609,273     8,721,319
----------------------------------------------------------------------------------------------------------------------
                               Retail % as of 3/31/04      39%      75,835,189   71,139,166   74,923,391    68,160,984

INDUSTRIAL
Smith Road               WO          Aurora, CO          277,930    10,884,456   10,578,055   10,806,403    10,508,509
----------------------------------------------------------------------------------------------------------------------
                             Industrial % as of 3/31/04    6%       10,884,456   10,578,055   10,806,403    10,508,509

HOTEL
PORTLAND CROWN PLAZA     CJV       LAKE OSWEGO, OR      161 ROOMS    7,998,729    7,900,000    8,008,729     8,008,729
----------------------------------------------------------------------------------------------------------------------
                                Hotel % as of 3/31/04      4%        7,998,729    7,900,000    8,008,729     8,008,729

MORTGAGE AND OTHER LOANS RECEIVABLE
Englar K-Mart            MD        Westminster, MD                     556,271      556,271           --            --
----------------------------------------------------------------------------------------------------------------------
     Mortgage and Other Loans Receivable % as of 3/31/04   0%          556,271      556,271           --            --

OTHER REAL ESTATE INVESTMENTS
Englar Lowes Loan        NR        Westminster, MD                   4,281,644    4,281,644      500,000       500,000
----------------------------------------------------------------------------------------------------------------------
        Other Real Estate Investments % as of 3/31/04      2%        4,281,644    4,281,644      500,000       500,000

TOTAL REAL ESTATE INVESTMENTS AS A PERCENTAGE OF
   NET ASSETS AS OF 3/31/04                                117%    240,887,942  216,012,947  235,053,143   210,366,185
                                                        =========  ===========  ===========  ===========   ===========
</TABLE>

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


                                       12
<PAGE>


           THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

                      CONSOLIDATED SCHEDULES OF INVESTMENTS
<TABLE>
<CAPTION>
                                                                            MARCH 31, 2004
                                                                              (UNAUDITED)         DECEMBER 31, 2003
                                                                        ----------------------- -----------------------
                                                                FACE                  ESTIMATED              ESTIMATED
                                                               AMOUNT      COST     MARKET VALUE   COST    MARKET VALUE
                                                             ---------- ----------- ----------- ----------- -----------
<S>                                                          <C>        <C>         <C>         <C>         <C>
CASH AND CASH EQUIVALENTS--PERCENTAGE OF NET ASSETS.......                                 8.1%                   10.4%
Federal National Mortgage Assoc., 1.00%, April 1, 2004....   $3,730,000 $ 3,729,899 $ 3,729,899 $        -- $        --
Federal National Mortgage Assoc., 1.01%, April 21, 2004...    9,000,000   8,987,750   8,987,750          --          --
Federal National Mortgage Assoc., 1.01%, April 28, 2004...    1,200,000   1,198,133   1,198,133          --          --
Federal National Mortgage Assoc., 1.06%, February 4, 2004.    5,974,000          --          --   5,967,907   5,967,907
Federal Home Loan Mortgage Corp., 0.88%, January 2, 2004..   12,331,000          --          --  12,330,520  12,330,520
                                                                        ----------- ----------- ----------- -----------
TOTAL CASH EQUIVALENTS....................................               13,915,782  13,915,782  18,298,427  18,298,427
CASH  ....................................................                  840,306     840,306     603,387     603,387
                                                                        ----------- ----------- ----------- -----------
TOTAL CASH AND CASH EQUIVALENTS...........................              $14,756,088 $14,756,088 $18,901,814 $18,901,814
                                                                        =========== =========== =========== ===========
</TABLE>

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


                                       13
<PAGE>


                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS OF

             PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

                             MARCH 31, 2004 AND 2003

                                   (UNAUDITED)

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The  accompanying  unaudited  financial  statements  included  herein  have been
prepared  in  accordance  with the  requirements  of Form  10-Q  and  accounting
principles  generally  accepted  in the  United  States of America  for  interim
financial information. In the opinion of management, all adjustments (consisting
only of normal recurring adjustments)  considered necessary for a fair statement
have been included.  Operating results for the three months ended March 31, 2004
are not necessarily  indicative of the results that may be expected for the year
ended  December  31,  2004.  For  further  information,  refer to the  financial
statements and notes thereto included in each Partner's December 31, 2003 Annual
Report on Form 10K.

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

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

NOTE 2: COMMITMENTS AND CONTINGENCIES

The  Partnership is subject to various legal  proceedings  and claims arising in
the  ordinary  course of  business.  These  matters  are  generally  covered  by
insurance.  In the  opinion  of  Prudential's  management,  the  outcome of such
matters will not have a significant effect on the Partnership.

NOTE 3: RELATED PARTY TRANSACTIONS

Pursuant to an investment management agreement, Prudential Investment Management
("PIM") charges the Partnership a daily  investment  management fee at an annual
rate of 1.25% of the average daily gross asset valuation of the Partnership. For
the three  months  ended  March 31,  2004 and 2003  investment  management  fees
incurred by the Partnership were $635,701 and $577,586 respectively.

The Partnership also reimburses PIM for certain administrative services rendered
by PIM. The amounts  incurred for the three months ended March 31, 2004 and 2003
were $29,157 for each period,  and are classified as  administrative  expense in
the Consolidated Statements of Operations.


                                       14
<PAGE>


                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS OF

             PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

                             MARCH 31, 2004 AND 2003

                                   (UNAUDITED)

NOTE 4: FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
                                                                             FOR THE THREE MONTHS ENDED MARCH 31,
                                                                    -----------------------------------------------------
                                                                     2004        2003       2002        2001        2000
                                                                    ------     ------      ------      ------      ------
<S>                                                                 <C>        <C>         <C>         <C>         <C>
PER SHARE(UNIT) OPERATING PERFORMANCE:

Net Asset Value, beginning of period....................            $24.66     $24.11      $23.82      $22.74      $20.86
INCOME FROM INVESTMENT OPERATIONS:
Investment income, before management fee................              0.35       0.39        0.42        0.39        0.42
Management fee..........................................             (0.09)     (0.08)      (0.07)      (0.07)      (0.07)
Net realized and unrealized gain (loss) on investments..             (0.08)     (0.49)      (0.45)      (0.07)      (0.28)
                                                                    ------     ------      ------      ------      ------
   Net Increase in Net Assets Resulting from Operations.              0.18      (0.18)      (0.10)       0.25        0.07
                                                                    ------     ------      ------      ------      ------

NET ASSET VALUE, END OF PERIOD..........................            $24.84     $23.93      $23.72      $22.99      $20.93
                                                                    ======     ======      ======      ======      ======
TOTAL RETURN, BEFORE MANAGEMENT FEE (a):................              1.10%     (0.45)%     (0.12)%      1.46%       0.68%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (in millions).................            $  183     $  183      $  197      $  209      $  211
   Ratios to average net assets (b):

      Management Fee....................................              0.35%      0.31%       0.31%       0.32%       0.32%
      Investment Income, before Management Fee..........              1.41%      1.60%       1.80%       1.74%       2.01%
</TABLE>


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

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

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


                                       15
<PAGE>


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

All of the assets of the 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, 2004,  the  Partnership's  liquid assets  consisting of cash and
cash  equivalents  were $14.8  million,  a decrease of $4.1  million  from $18.9
million at December 31, 2003. The change in the Partnership's  cash position was
primarily due to an additional  funding of $3.75 million to the note  receivable
associated with a retail center located in Westminster, Maryland.

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, 2004, 6.2% of
the Partnership's total assets consisted of cash and short-term obligations.

The Partnership  made $6.9 million in distributions to the Partners during 2003.
Distributions  may be made to the Partners during 2004 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 2004, the Partnership spent  approximately $1.4
million in capital  expenditures on wholly owned and consolidated  joint venture
properties.  Approximately  $0.8 million was associated  with the development of
the retail center located in Ocean City, Maryland. Of the remaining $0.6 million
balance, $0.4 million was primarily associated with leasing related costs at one
of the office buildings  located in Brentwood,  Tennessee.  The Partnership also
increased  its  investment in real estate  partnerships  by  approximately  $0.1
million in connection with the redevelopment and expansion of the retail centers
located in Kansas City, Missouri.

On  March  24,  2004,  the  Partnership  increased  its  investment  in the note
receivable associated with a retail center located in Westminster,  Maryland for
$3.75  million.  Commencing on January 6, 2004,  with  additional  contributions
throughout the quarter,  the  Partnership  invested in a $0.5 million  mezzanine
debt investment on a second retail center located in Westminster, Maryland.

(B) RESULTS OF OPERATIONS

The following is a brief quarter-to-date comparison of the Partnership's results
of operations for the periods ended March 31, 2004 and 2003.

MARCH 31, 2004 VS. MARCH 31, 2003

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


                                       16
<PAGE>

<TABLE>
<CAPTION>
                                                                                         QUARTER ENDED MARCH 31,
                                                                                   --------------------------------
                                                                                      2004                 2003
<S>                                                                                <C>                  <C>
NET INVESTMENT INCOME:

Office properties.........................................................         $   502,797          $   646,699
Apartment complexes.......................................................             741,550              874,685
Retail properties.........................................................           1,158,256            1,142,723
Industrial properties.....................................................             147,786              225,850
Hotel property............................................................              59,731                   --
Other (including interest income, investment mgt fee, etc.)...............            (688,057)            (513,715)
                                                                                   -----------          -----------
TOTAL NET INVESTMENT INCOME...............................................         $ 1,922,063          $ 2,376,242
                                                                                   ===========          ===========
NET UNREALIZED GAIN (LOSS) ON REAL ESTATE INVESTMENTS:

Office properties.........................................................         $(2,079,610)         $(3,945,836)
Apartment complexes.......................................................             (85,075)              66,284
Retail properties.........................................................           1,563,107              345,040
Industrial properties.....................................................              (8,506)            (707,964)
Hotel property............................................................              48,984                   --
                                                                                   -----------          -----------
TOTAL NET UNREALIZED GAIN (LOSS) ON REAL ESTATE INVESTMENTS...............            (561,100)          (4,242,476)
                                                                                   ===========          ===========
NET REALIZED GAIN (LOSS) ON REAL ESTATE INVESTMENTS:

Industrial properties.....................................................                  --              466,061
                                                                                   -----------          -----------
TOTAL NET REALIZED GAIN (LOSS) ON REAL ESTATE INVESTMENTS.................                  --              466,061
                                                                                   -----------          -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON REAL ESTATE INVESTMENTS........         $  (561,100)         $(3,776,415)
                                                                                   -----------          -----------
</TABLE>

                         NET INVESTMENT INCOME OVERVIEW

The  Partnership's  net  investment  income for the three months ended March 31,
2004 was $1.9  million,  a  decrease  of $0.5  million  from $2.4  million  when
compared to the  corresponding  period in 2003. The decrease is primarily due to
continued vacancy within the office portfolio.

Administrative expense increased $0.4 million, or 51.1%, in the first quarter of
2004 when  compared to the same period in 2003.  This increase was primarily due
to the Partnership's  acquisition of a controlling  interest in a 161-room hotel
located in Lake Oswego, Oregon in late 2003.

Operating expense increased $0.3 million, or 26.4%, in the first quarter of 2004
when compared to the same period in 2003. This increase is also primarily due to
the  Partnership's  acquisition  of a controlling  interest in a 161-room  hotel
located in Lake Oswego, Oregon in late 2003.

                               VALUATION OVERVIEW

The Partnership  experienced a net unrealized loss of $0.6 million for the three
months ended March 31, 2004  compared to a net  unrealized  loss of $4.2 million
during the  corresponding  period in 2003. The unrealized  loss during the first
three months of 2004 was primarily  experienced in the office sector. The office
portfolio  recorded an unrealized  loss  totaling $2.1 million  primarily due to
decreases in occupancy  coupled with soft market  conditions which have resulted
in  reductions in market rental rates and  increased  leasing  costs.  Partially
offsetting  this loss in the  office  sector was the gain in value in the retail
sector,  primarily due to  strengthening  market  fundamentals,  renovation  and
re-leasing  efforts,  at the retail centers  located in Kansas City,  Kansas and
Missouri  and the  pre-leased  expansion  at the center  located in Ocean  City,
Maryland.

OFFICE PORTFOLIO
<TABLE>
<CAPTION>
                                   NET          NET
                               INVESTMENT    INVESTMENT     UNREALIZED     UNREALIZED
                                 INCOME        INCOME       GAIN/(LOSS)    GAIN/(LOSS)    OCCUPANCY      OCCUPANCY
PROPERTY                        03/31/04      03/31/03       03/31/04       03/31/03      03/31/04       03/31/03
--------                       ----------    ----------    ------------   ------------    ---------      ---------
<S>                              <C>          <C>          <C>            <C>                <C>            <C>
QUARTER TO DATE
Lisle, IL..................      $ 93,201     $ 387,083    $(2,104,741)   $(1,355,000)       44%            47%
Brentwood, TN..............       200,286       120,997        (39,260)      (351,832)       79%            78%
Oakbrook Terrace, IL.......        63,635        (8,248)      (369,885)    (1,329,709)       41%            31%
Beaverton, OR..............       236,305       248,069             --       (200,000)       78%            81%
Brentwood, TN..............       (90,630)     (101,202)       434,276       (709,295)        0%             0%
                                 --------     ---------    -----------    -----------
                                 $502,797     $ 646,699    $(2,079,610)   $(3,945,836)
                                 --------     ---------    -----------    -----------
</TABLE>


                                       17
<PAGE>


                              NET INVESTMENT INCOME

Net investment  income from property  operations for the office sector decreased
approximately $0.1 million,  or 22.3%, for the three months ended March 31, 2004
when  compared to the  corresponding  period in 2003  primarily due to increased
vacancy resulting from weak market fundamentals.

                              UNREALIZED GAIN/LOSS

The five office properties owned by the Partnership experienced a net unrealized
loss of  approximately  $2.1 million  during the first three months of 2004. The
losses were  primarily  due to  decreased  occupancy,  lower market  rents,  and
increased lease up costs.

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
decrease in values was  primarily  due to a reduction  in market  rental  rates,
softening market conditions,  increased lease-up costs, increased expenses and a
decrease in occupancy due to various near-term lease expirations.

As of March 31, 2004 all vacant spaces were being marketed.

APARTMENT COMPLEXES
<TABLE>
<CAPTION>
                                   NET           NET
                               INVESTMENT    INVESTMENT     UNREALIZED     UNREALIZED
                                 INCOME        INCOME       GAIN/(LOSS)    GAIN/(LOSS)    OCCUPANCY      OCCUPANCY
PROPERTY                        03/31/04      03/31/03       03/31/04       03/31/03      03/31/04       03/31/03
--------                       ----------    ----------    ------------   ------------    ---------      ---------
<S>                              <C>           <C>           <C>             <C>             <C>            <C>
QUARTER TO DATE
Atlanta, GA................      $207,368      $243,049      $ 290,000       $(28,802)       91%            88%
Raleigh, NC................       147,693       219,121        (65,000)        (2,998)       93%            95%
Jacksonville, FL...........       273,617       267,235        (28,000)       130,710        91%            94%
Gresham/Salem, OR..........       112,872       145,280       (282,075)       (32,626)       90%            91%
                                 --------      --------      ---------       --------
                                 $741,550      $874,685      $ (85,075)      $ 66,284
                                 --------      --------      ---------       --------
</TABLE>

                              NET INVESTMENT INCOME

Net investment income from property operations for the apartment sector was $0.7
million for the three months  ended March 31, 2004, a decrease of $0.1  million,
or 15.2%,  when compared to the  corresponding  period in 2003. The decrease was
mainly due to increased concessions and mortgage interest at the complex located
in Raleigh,  North Carolina that was not applicable  during the first quarter of
2003.  Also increased  expenses at the Atlanta,  Georgia complex for repairs and
maintenance added to the decreased net investment income for the sector.

                              UNREALIZED GAIN/LOSS

The apartment  complexes owned by the  Partnership  experienced a net unrealized
loss of $0.1 million for the three months ended March 31, 2004 compared to a net
unrealized  gain of $0.1 million for the three months ended March 31, 2003.  The
unrealized  loss for the first  quarter of 2004 was mainly  attributable  to the
apartment  complex  located  in  Gresham/Salem,  Oregon  due to an  increase  in
projected operating expenses and lower market rental rates. Partially offsetting
this loss is the unrealized  gain at the apartment  complex  located in Atlanta,
Georgia due to decreased  projected  expenses.  The unrealized gain for 2003 was
primarily attributable to the apartment complex located in Jacksonville, Florida
due to an increase in occupancy.

As of March 31, 2004, all available vacant units were being marketed.


                                       18
<PAGE>


RETAIL PROPERTIES
<TABLE>
<CAPTION>
                                   NET           NET
                               INVESTMENT    INVESTMENT     UNREALIZED     UNREALIZED
                                 INCOME        INCOME       GAIN/(LOSS)    GAIN/(LOSS)    OCCUPANCY      OCCUPANCY
PROPERTY                        03/31/04      03/31/03       03/31/04       03/31/03      03/31/04       03/31/03
--------                       ----------    ----------    ------------   ------------    ---------      ---------
<S>                            <C>           <C>            <C>             <C>             <C>            <C>
QUARTER TO DATE
Roswell, GA................    $  426,419    $  690,217     $  (39,710)     $ 466,952        75%            93%
Kansas City, KS; MO........       160,614       160,736        744,008       (307,349)       87%            90%
Hampton, VA ...............       304,081       218,228        285,500          3,425       100%           100%
Ocean City, MD.............       176,372        73,542        573,309        182,012        99%           100%
Westminster, MD*...........        31,644           N/A             --            N/A       N/A            N/A
Westminster, MD **.........        59,126           N/A             --            N/A       N/A            N/A
                               ----------    ----------     ----------      ---------
                               $1,158,256    $1,142,723     $1,563,107      $ 345,040
                               ----------    ----------     ----------      ---------
</TABLE>

*  Note Receivable (Acquired October 2003)
** Mortgage Loan Receivable (Acquired January 2004)

                              NET INVESTMENT INCOME

Net investment income for the Partnership's  retail properties was approximately
$1.2  million for the three  months  ended  March 31,  2004 and 2003.  While net
investment  income was  essentially  the same for both periods,  the  properties
contributing  have changed  somewhat.  Increases were due to the expanded center
located in Ocean City,  Maryland  and the  acquisition  of the two  Westminster,
Maryland  investments.  It  should  also be  noted  that on April  15,  2003 the
Partnership  acquired its joint  venture  partner's  membership  interest in the
retail center located in Hampton,  Virginia,  thus entitling the  Partnership to
all of the net investment  income generated by the investment.  Offsetting these
increases was the retail center located in Roswell,  Georgia,  which experienced
increased vacancy due to a lease termination.

                              UNREALIZED GAIN/LOSS

The retail properties  experienced a net unrealized gain of $1.6 million for the
three months ended March 31, 2004. The Kansas City,  Kansas and Missouri  retail
centers experienced a net unrealized gain primarily due to strengthening  market
fundamentals, renovation and re-leasing efforts. The Ocean City, Maryland retail
center experienced a gain due to the pre-leased expansion. The center located in
Hampton,   Virginia  also  experienced  a  gain  due  to  strengthening   market
fundamentals.

The retail properties  experienced a net unrealized gain of $0.3 million for the
quarter  ended  March 31,  2003.  The  retail  center  located  in  Roswell,  GA
experienced a net unrealized gain due to a major tenant signing a lease renewal.
The retail center in Ocean City, MD also  experienced a net unrealized  gain due
to an increase in value resulting from capital  expenditures.  Offsetting  these
gains was the unrealized  losses  experienced  at the retail centers  located in
Kansas  City,  Kansas  and  Missouri,  primarily  due to  renovations  from  the
expansion of the  existing  grocery  store anchor that were not  reflected as an
increase in market value.

As of March 31, 2004, all vacant spaces were being marketed.

INDUSTRIAL PROPERTIES
<TABLE>
<CAPTION>
                                   NET           NET        UNREALIZED/    UNREALIZED/
                               INVESTMENT    INVESTMENT      REALIZED       REALIZED
                                 INCOME        INCOME       GAIN/(LOSS)    GAIN/(LOSS)    OCCUPANCY      OCCUPANCY
PROPERTY                        03/31/04      03/31/03       03/31/04       03/31/03      03/31/04       03/31/03
--------                       ----------    ----------    ------------   ------------    ---------      ---------
<S>                              <C>          <C>             <C>           <C>             <C>
QUARTER TO DATE
Aurora, CO.................      $145,412     $ 201,043       $ (8,506)     $(707,964)       84%            84%
Bolingbrook, IL............         2,603            --             --             --       Sold September 2002
Salt Lake City, UT.........          (229)       24,807             --        466,061        Sold January 2003
                                 --------     ---------       --------      ---------
                                 $147,786     $ 225,850       $ (8,506)     $(241,903)
                                 --------     ---------       --------      ---------
</TABLE>


                                       19
<PAGE>


                              NET INVESTMENT INCOME

Net investment  income from property  operations  for the industrial  properties
decreased  from $0.2  million for the three  months ended March 31, 2003 to $0.1
million for the corresponding  period ended March 31, 2004. The decrease was due
to a rental concession given to a new tenant at the industrial  property located
in Aurora, Colorado and the sale of the industrial property located in Salt Lake
City, Utah during the first quarter of 2003.

                              UNREALIZED GAIN/LOSS

The Aurora, Colorado industrial property owned by the Partnership experienced an
immaterial  net  unrealized  loss for the three  months  ended  March  31,  2004
compared to a net unrealized  loss of  approximately  $0.7 million for the three
months ended March 31, 2003. The net unrealized loss for the quarter ended March
31, 2003 was due to softening market conditions.

As of March 31, 2004, all vacant spaces were being marketed.

                                  REALIZED GAIN

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

HOTEL PROPERTY
<TABLE>
<CAPTION>

                                   NET           NET
                               INVESTMENT    INVESTMENT     UNREALIZED     UNREALIZED
                                 INCOME        INCOME       GAIN/(LOSS)    GAIN/(LOSS)    OCCUPANCY      OCCUPANCY
PROPERTY                        03/31/04      03/31/03       03/31/04       03/31/03      03/31/04       03/31/03
--------                       ----------    ----------    ------------   ------------    ---------      ---------
<S>                               <C>           <C>           <C>               <C>         <C>             <C>
QUARTER TO DATE
Lake Oswego, OR *..........       $59,731       N/A           $48,984           N/A         69%             N/A
</TABLE>

* Hotel purchased in December 2003

                              NET INVESTMENT INCOME

On December 10,  2003,  the  Partnership  acquired a  controlling  interest in a
161-room  hotel  located in Portland,  Oregon for $8.0 million.  Net  investment
income from hotel  operations  was $0.1 million for the three months ended March
31, 2004.

                              UNREALIZED GAIN/LOSS

The Lake Oswego,  Oregon hotel property owned by the  Partnership  experienced a
net unrealized gain of $0.05 million for the three months ended March 31, 2004.

OTHER

Other net investment income decreased $0.2 million during the three months ended
March  31,  2004  compared  to the  corresponding  period  in  2003.  Other  net
investment  income  includes   interest  income  from  short-term   investments,
investment management fees, and portfolio level expenses.

(C) INFLATION

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


                                       20
<PAGE>


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.

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.

Mortgage  and other loans  receivable,  which are  accounted  for as loans,  are
independently valued as described above.

Other real estate investments include notes receivable,  which are valued at the
amount due and approximate market value.

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, 2004 and March 31, 2003.

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.


                                       21
<PAGE>


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 31.97% 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, 2004:

                                                ESTIMATED MARKET
                                                      VALUE           AVERAGE
                                     MATURITY    (IN $ MILLIONS)   INTEREST RATE
                                    ----------  ----------------   -------------
Cash equivalents..................  0-3 months        $14.8            1.01%

The table  below  discloses  the  Partnership's  fixed rate debt as of March 31,
2004. All of the Partnership's  long-term debt bears interest at fixed rates and
therefore the fair value of these  instruments  is affected by changes in market
interest rates. The following table presents principal cash flows (in thousands)
based  upon   maturity   dates  of  the  debt   obligations   and  the   related
weighted-average  interest  rates by expected  maturity dates for the fixed rate
debt.
<TABLE>
<CAPTION>
DEBT (IN $ THOUSANDS),             4/1/2004-                                                                 ESTIMATED
INCLUDING CURRENT PORTION         12/31/2004   2005      2006       2007      2008   THEREAFTER     TOTAL   FAIR VALUE
-------------------------         ----------  ------    ------     ------    ------  ----------    -------  ----------
<S>                                  <C>       <C>      <C>         <C>      <C>      <C>          <C>        <C>
Average Fixed Interest Rate......    5.85%     5.83%      5.28%     5.26%     5.04%     6.75%         6.32%
Fixed Rate.......................    $543      $774     $8,479      $588     $26,091  $7,284       $43,759    $46,322
                                 --------------------------------------------------------------------------------------
Total Mortgage Loans Payable.....    $543      $774     $8,479      $588     $26,091  $7,284       $43,759    $46,322
                                 --------------------------------------------------------------------------------------
</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

In order to ensure that the information we must disclose in our filings with the
Securities  and Exchange  Commission  is recorded,  processed,  summarized,  and
reported  on a timely  basis,  the  Company's  management,  including  our Chief
Executive Officer and President and Chief Accounting Officer,  have reviewed and
evaluated  the  effectiveness  of our  disclosure  controls and  procedures,  as
defined in Exchange Act Rules  13a-15(e)  and  15d-15(e),  as of March 31, 2004.
Based on such  evaluation,  the Chief Executive  Officer and President and Chief
Accounting  Officer have  concluded  that, as of March 31, 2004,  our disclosure
controls  and  procedures  were  effective in timely  alerting  them to material
information  relating to us required to be included in our periodic SEC filings.
There has been no change in our internal control over financial reporting during
the quarter ended March 31, 2004, that has materially affected, or is reasonably
likely to materially affect, our internal control over financial reporting.


                                       22
<PAGE>


                                     PART II

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


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

ITEM 6. EXHIBITS 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  A(6)(a)  to  Post-Effective
              Amendment No. 17 to Form S-6, Registration  Statement No. 2-89780,
              filed  March  1,  1991,  on  behalf  of Pruco  Life of New  Jersey
              Variable   Appreciable   Account,   and  incorporated   herein  by
              reference.

       3.2    Certificate  of  Amendment of Articles of  Incorporation  of Pruco
              Life Insurance Company of New Jersey,  filed as Exhibit A(3)(A) to
              Post-Effective  Amendment No. 12 Form S-1, Registration  Statement
              No. 33-20018,  filed April 15, 1999 on behalf of Pruco Life of New
              Jersey  Real  Property   Account,   and  incorporated   herein  by
              reference.

       3.3    Amended  By-Laws of Pruco Life  Insurance  Company of New  Jersey,
              filed as Exhibit A(6)(C) to Form S-6,  Registration  Statement No.
              333-85117,  filed  August 13,  1999 on behalf of Pruco Life of New
              Jersey  Real  Property   Account,   and  incorporated   herein  by
              reference.

       3.4    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.


                                       23
<PAGE>


       11.    Not applicable.

       12.    Not applicable.

       18.    None.

       22.    Not applicable.

       23.    None.

       24.    Not applicable.

       27.    Not applicable.

       31.1   Certification  of Chief Executive  Officer and President  required
              pursuant to Exchange Act Rules 13a-15(e) and 15d-15(e), as adopted
              pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

       31.2   Certification  of Chief Accounting  Officer  required  pursuant to
              Exchange Act Rules 13a-15(e) and 15d-15(e), as adopted pursuant to
              Section 302 of the Sarbanes-Oxley Act of 2002.

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

       32.2   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.


                                       24
<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 14, 2004                        By: /s/ Andrew J. Mako
         --------------                           -----------------------
                                                     Andrew J. Mako
                                                     Chief Executive Officer and
                                                     President


                                       25