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

                                  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, 2005
                               --------------

                                       OR

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

COMMISSION FILE NUMBER 33-20018




                   PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

                                  IN RESPECT OF

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


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


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


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

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


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

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


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


<PAGE>


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


                                      INDEX
                                      -----
<TABLE>
<CAPTION>
                                                                                                    PAGE
                                                                                                    ----
<S>                                                                                                 <C>
Forward-Looking Statements.......................................................................     3

PART I--FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

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

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

         Statement of Operations--Three Months Ended March 31, 2005 and 2004.....................     4

         Statement of Changes in Net Assets--Three Months Ended March 31, 2005 and 2004..........     4

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

B.   THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

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

         Consolidated Statements of Operations--
         Three Months Ended March 31, 2005 and 2004..............................................     9

         Consolidated Statements of Changes in Net Assets--
         Three Months Ended March 31, 2005 and 2004..............................................    10

         Consolidated Statements of Cash Flows--
         Three Months Ended March 31, 2005 and 2004..............................................    11

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

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

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

Item 3. Quantitative and Qualitative Disclosures About Market Risks..............................    21

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

PART II--OTHER INFORMATION

Item 4. Submission of Matters to a Vote of Security Holders......................................    22

Item 6. Exhibits.................................................................................    22

Signature........................................................................................    23
</TABLE>


                                       2
<PAGE>

FORWARD-LOOKING STATEMENTS

Some of the statements included in this Quarterly Report on Form 10-Q, including
but not limited to those in  Management's  Discussion  and Analysis of Financial
Condition and Results of Operations,  may constitute  forward-looking statements
within the meaning of the U.S. Private Securities Litigation Reform Act of 1995.
Words  such  as  "expects,"  "believes,"   "anticipates,"  "includes,"  "plans,"
"assumes,"  "estimates,"  "projects,"  "intends,"  "should,"  "will," "shall" or
variations  of such  words are  generally  part of  forward-looking  statements.
Forward-looking  statements are made based on management's  current expectations
and beliefs  concerning  future  developments  and their potential  effects upon
Pruco Life  Insurance  Company of New Jersey ("the  Company") or the  Prudential
Variable Contract Real Property Account (the "Real Property Account"). There can
be no  assurance  that future  developments  affecting  the Company and the Real
Property Account will be those anticipated by management.  These forward-looking
statements  are not a guarantee  of future  performance  and  involve  risks and
uncertainties,  and there are certain  important factors that could cause actual
results to differ, possibly materially, from expectations or estimates reflected
in  such  forward-looking  statements,  including,  among  others:  (1)  general
economic,  market  and  political  conditions,   including  the  performance  of
financial  markets and interest  rate  fluctuations  and economic  conditions in
local markets in which the properties in the Real Property  Account are located;
(2) domestic or international military or terrorist activities or conflicts; (3)
volatility in the  securities  markets;  (4)  fluctuations  in foreign  currency
exchange  rates and foreign  securities  markets;  (5) regulatory or legislative
changes,  including  changes in tax law; (6) changes in  statutory or U.S.  GAAP
accounting  principles,  practices or policies;  (7) differences  between actual
experience regarding mortality,  morbidity,  persistency,  surrender experience,
interest  rates,  or market  returns and the  assumptions  we use in pricing our
products,  establishing  liabilities  and  reserves or for other  purposes;  (8)
reestimates of our reserves for future policy  benefits and claims;  (9) changes
in our assumptions  related to deferred policy  acquisition  costs;  (10) events
resulting in catastrophic  loss of life;  (11)  investment  losses and defaults;
(12) changes in our  claims-paying  or credit ratings;  (13)  competition in our
product lines and for personnel;  (14) economic,  political,  currency and other
risks relating to our  international  operations;  (15)  Prudential  Insurance's
reliance,  as  a  holding  company,  on  dividends  or  distributions  from  its
subsidiaries  to meet debt payment  obligations  and the  applicable  regulatory
restrictions  on the  ability  of the  subsidiaries  to pay  such  dividends  or
distributions;  (16) adverse  determinations in litigation or regulatory matters
and  our  exposure  to   contingent   liabilities;   and  (17)  the  effects  of
acquisitions,  divestitures and restructurings,  including possible difficulties
in integrating and realizing the projected results of acquisitions.  The Company
and the Real Property  Account do not intend,  and are under no  obligation,  to
update any particular forward-looking statement included in this document.













                                       3
<PAGE>

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

<TABLE>
<CAPTION>
STATEMENT OF NET ASSETS
March 31, 2005 and December 31, 2004              MARCH 31, 2005
                                                    (UNAUDITED)      DECEMBER 31, 2004
                                                 ----------------    -----------------
<S>                                                 <C>                  <C>
ASSETS
Investment in The Prudential Variable Contract
  Real Property Partnership ...................     $8,278,986           $8,082,948
                                                    ----------           ----------
Net Assets ....................................     $8,278,986           $8,082,948
                                                    ==========           ==========
NET ASSETS, representing:
Equity of contract owners .....................     $6,195,040           $6,042,260
Equity of Pruco Life Insurance Company
  of New Jersey ...............................      2,083,946            2,040,688
                                                    ----------           ----------
                                                    $8,278,986           $8,082,948
                                                    ==========           ==========
Units outstanding .............................      3,443,348            3,438,311
                                                    ==========           ==========
Portfolio shares held .........................        309,093              309,093
Portfolio net asset value per share ...........     $    26.78           $    26.15
<CAPTION>
STATEMENT OF OPERATIONS
For the three months ended
  March 31, 2005 and 2004                        1/1/2005-3/31/2005  1/1/2004-3/31/2004
                                                    (UNAUDITED)          (UNAUDITED)
                                                 ------------------  ------------------
<S>                                                 <C>                  <C>
INVESTMENT INCOME
Net investment income from
  Partnership operations ......................     $   86,048           $   83,025
                                                    ----------           ----------
EXPENSES
Charges to contract owners for assuming
  mortality risk and expense risk and
  for administration ..........................          8,592                8,286
                                                    ----------           ----------
NET INVESTMENT INCOME .........................         77,456               74,739
                                                    ----------           ----------
NET REALIZED AND UNREALIZED GAIN
  (LOSS) ON INVESTMENTS
Net change in unrealized gain (loss)
  on investments from Partnership .............        118,571              (24,237)
Net realized gain (loss) on sale of
  investments from Partnership ................         (8,581)                   0
                                                    ----------           ----------
NET GAIN (LOSS) ON INVESTMENTS ................        109,990              (24,237)
                                                    ----------           ----------
NET INCREASE (DECREASE) IN NET ASSETS
  RESULTING FROM OPERATIONS ...................      $ 187,446           $   50,502
                                                    ==========           ==========
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
For the three months ended
  March 31, 2005 and 2004                        1/1/2005-3/31/2005  1/1/2004-3/31/2004
                                                     (UNAUDITED)        (UNAUDITED)
                                                 ------------------  ------------------
<S>                                                 <C>                  <C>
OPERATIONS
Net investment income .........................     $   77,456           $   74,739
Net change in unrealized gain (loss)
  on investments in Partnership ...............        118,571              (24,237)
Net realized gain (loss) on sale of
  investments in Partnership ..................         (8,581)                   0
                                                    ----------           ----------
NET INCREASE (DECREASE) IN NET ASSETS
  RESULTING FROM OPERATIONS ...................        187,446               50,502
                                                    ----------           ----------
CAPITAL TRANSACTIONS
Net contributions by contract owners ..........         15,025                5,449
Net contributions (withdrawals) by Pruco
  Life Insurance Company of New Jersey ........         (6,433)               2,836
                                                    ----------           ----------
NET INCREASE (DECREASE) IN
  NET ASSETS RESULTING FROM
  CAPITAL TRANSACTIONS ........................          8,592                8,285
                                                    ----------           ----------
TOTAL INCREASE (DECREASE)
  IN NET ASSETS ...............................        196,038               58,787
NET ASSETS
Beginning of period ...........................      8,082,948            7,846,237
                                                    ----------           ----------
End of period .................................     $8,278,986           $7,905,024
                                                    ==========           ==========
</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, 2005
                                   (UNAUDITED)


NOTE 1: GENERAL

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

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

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, 2005 and for the three months ended
March 31, 2005 and 2004 is unaudited; however, in the opinion of management, the
interim  data  includes all  adjustments,  consisting  only of normal  recurring
adjustments,  necessary  for a fair  statement  of the  results  for the interim
periods.

B. INVESTMENT IN PARTNERSHIP INTEREST

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

C. INCOME RECOGNITION

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

D. EQUITY OF PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

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


                                       5
<PAGE>


NOTE 3: CHARGES AND EXPENSES

A. MORTALITY RISK AND EXPENSE RISK CHARGES

Mortality risk and expense risk charges are determined  daily using an effective
annual  rate  of  0.6%,   0.35%,  0.9%  and  0.9%  for  VAL,  VLI,  SPVA,  SPVL,
respectively.  Mortality  risk refers to the risk that life  insurance  contract
owners may not live as long as  estimated  or  annuitants  may live  longer than
estimated.  Expense  risk  refers  to the  risk  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
reductions in unit values.

B. ADMINISTRATIVE CHARGES

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

C. COST OF INSURANCE AND OTHER RELATED CHARGES

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

D. DEFERRED SALES CHARGE

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

NOTE 4: TAXES

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



                                       6
<PAGE>

NOTE 5: NET CONTRIBUTIONS BY CONTRACT OWNERS

Net contract owner  withdrawals/(contributions)  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, 2005 and 2004, were as follows:

                                   THREE MONTHS ENDED
                                        MARCH 31,
                               2005                  2004
                             --------              --------
                                       (UNAUDITED)

VAL                          $(22,504)             $(10,765)
VLI                            22,104                  (864)
SPVA                          (15,000)                    0
SPVL                              375                 6,180
                             --------              --------
TOTAL                        $(15,025)             $ (5,449)
                             ========              ========

NOTE 6: PARTNERSHIP DISTRIBUTIONS

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

NOTE 7: UNIT INFORMATION

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

                                     MARCH 31, 2005
                                       (UNAUDITED)           DECEMBER 31, 2004
                                   ------------------       -------------------
UNITS OUTSTANDING:                      3,443,348                3,438,311
UNIT VALUE:                        2.13053 to 2.51226       2.08645 to 2.45484

NOTE 8: FINANCIAL HIGHLIGHTS

The range of total return for the three months ended March 31, 2005 and 2004 was
as follows:

                                     THREE MONTHS ENDED
                                         MARCH 31,
                               2005                  2004
                             --------              --------
                                       (UNAUDITED)

TOTAL RETURN              2.11% to 2.34%        0.44% to 0.66%









                                       7
<PAGE>


        THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP


                CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES


<TABLE>
<CAPTION>
                                                                        MARCH 31, 2005
                                                                          (UNAUDITED)    DECEMBER 31, 2004
                                                                       ----------------  -----------------
<S>                                                                     <C>                 <C>
ASSETS
REAL ESTATE INVESTMENTS -- At estimated market value:
   Real estate and improvements
      (cost: 3/31/2005 -- $221,462,489; 12/31/2004 -- $224,584,885) ..   $202,490,858       $203,246,069
   Real estate partnership (cost: 3/31/2005 -- $11,305,625;
      12/31/2004 -- $11,286,826) .....................................     12,232,041         12,126,566
   Mortgage and other loans receivable (cost: 3/31/2005 -- $2,583,241;
      12/31/2004 -- $1,332,060) ......................................      2,583,241          1,332,060
                                                                         ------------       ------------
        Total real estate investments ................................    217,306,140        216,704,695
CASH AND CASH EQUIVALENTS ............................................     21,637,051         17,557,182
OTHER ASSETS, NET ....................................................      4,742,962          6,313,734
                                                                         ------------       ------------
        Total assets .................................................   $243,686,153       $240,575,611
                                                                         ============       ============

LIABILITIES
MORTGAGE LOANS PAYABLE ...............................................     43,647,986         43,773,767
ACCOUNTS PAYABLE AND ACCRUED EXPENSES ................................      3,092,713          3,096,006
DUE TO AFFILIATES ....................................................        686,944            721,419
OTHER LIABILITIES ....................................................        758,122            622,900
MINORITY INTEREST ....................................................      4,248,693          5,638,458
                                                                         ------------       ------------
        Total liabilities ............................................     52,434,458         53,852,550
                                                                         ------------       ------------
COMMITMENTS AND CONTINGENCIES
PARTNERS' EQUITY .....................................................    191,251,695        186,723,061
                                                                         ------------       ------------
        Total liabilities and partners' equity .......................   $243,686,153       $240,575,611
                                                                         ============       ============
NUMBER OF SHARES OUTSTANDING AT END OF PERIOD ........................      7,140,308          7,140,308
                                                                         ============       ============
SHARE VALUE AT END OF PERIOD .........................................         $26.78             $26.15
                                                                         ============       ============
</TABLE>

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
















                                       8
<PAGE>

           THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP


                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                   THREE MONTHS       THREE MONTHS
                                                                      ENDED              ENDED
                                                                  MARCH 31, 2005     MARCH 31, 2004
                                                                  --------------     --------------
<S>                                                                <C>                 <C>
INVESTMENT INCOME:
  Revenue from real estate and improvements ....................   $6,739,666          $6,484,513
  Equity in income of real estate partnership ..................      122,750             165,887
  Interest and equity income on mortgage loans receivable and
    other loans receivable .....................................       59,170              59,126
  Income from other real estate investments ....................           --              31,644
  Interest on short-term investments ...........................       99,222              43,177
                                                                   ----------          ----------
      Total investment income ..................................    7,020,808           6,784,347
                                                                   ----------          ----------
INVESTMENT EXPENSES:
  Operating ....................................................    1,941,949           1,661,254
  Investment management fee ....................................      673,537             635,701
  Real estate taxes ............................................      650,195             722,033
  Administrative ...............................................    1,177,736           1,216,664
  Interest expense .............................................      586,024             595,075
  Minority interest ............................................        3,573              31,557
                                                                   ----------          ----------
      Total investment expenses ................................    5,033,014           4,862,284
                                                                   ----------          ----------
NET INVESTMENT INCOME ..........................................    1,987,794           1,922,063
                                                                   ----------          ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON REAL ESTATE INVESTMENTS:
  Net proceeds from real estate investments sold ...............    4,550,103                  --
    Less: Cost of real estate investments sold .................    4,101,778                  --
         Realization of prior periods' unrealized gain (loss) on
            real estate investments sold .......................      646,563                  --
                                                                   ----------          ----------
  Net gain (loss) realized on real estate investments sold .....     (198,238)                 --
                                                                   ----------          ----------
  Change in unrealized gain (loss) on real estate investments ..    3,100,426            (188,037)
  Less: Minority interest in unrealized gain (loss) on real
    estate investments .........................................      361,348             373,063
                                                                   ----------          ----------
  Net unrealized gain (loss) on real estate investments ........    2,739,078            (561,100)
                                                                   ----------          ----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
  ON REAL ESTATE INVESTMENTS ...................................    2,540,840            (561,100)
                                                                   ----------          ----------
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ....   $4,528,634          $1,360,963
                                                                   ==========          ==========
</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, 2005   MARCH 31, 2004
                                                                    --------------    --------------
<S>                                                                  <C>               <C>
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS:
   Net investment income ........................................    $  1,987,794      $  1,922,063
   Net gain (loss) realized on real estate investments sold .....        (198,238)               --
   Net unrealized gain (loss) from real estate investments ......       2,739,078          (561,100)
                                                                     ------------      ------------
      Increase (decrease) in net assets resulting from operations       4,528,634         1,360,963
                                                                     ------------      ------------
NET ASSETS--Beginning of period .................................     186,723,061       181,643,061
                                                                     ------------      ------------
NET ASSETS--End of period .......................................    $191,251,695      $183,004,024
                                                                     ============      ============
</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, 2005    MARCH 31, 2004
                                                                         --------------    --------------
<S>                                                                        <C>              <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net increase (decrease) in net assets resulting from operations ...     $ 4,528,634      $ 1,360,963
   Adjustments to reconcile net increase (decrease) in net assets
      to net cash flows from operating activities:
        Net realized and unrealized gain (loss) on investments .......      (2,540,840)         561,100
        Equity in income of real estate partnership in excess
          of distributions ...........................................         (18,798)          38,301
        Minority interest from operating activities ..................           3,573           31,557
        Bad debt expense .............................................          30,775          136,932
        (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 .................................         (59,170)          (8,126)
        (Increase) Decrease in:
          Other assets ...............................................       1,539,998         (496,447)
        Increase (Decrease) in:
          Accounts payable and accrued expenses ......................          (3,293)         262,198
          Due to affiliates ..........................................         (34,475)        (290,073)
          Other liabilities ..........................................         135,222           (9,666)
                                                                           -----------      -----------
   Net cash flows from operating activities ..........................       3,581,626        1,555,095
                                                                           -----------      -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
   Net proceeds from real estate investments sold ....................       4,550,103               --
   Additions to real estate and improvements .........................        (979,382)      (1,088,916)
   Contribution to real estate partnership ...........................              --         (103,951)
   Origination of mortgage and other loans receivable ................      (1,192,011)        (548,145)
   Origination of other real estate investments ......................              --       (3,750,000)
                                                                           -----------      -----------
   Net cash flows from (used in) investing activities ................       2,378,710       (5,491,012)
                                                                           -----------      -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Principal payments on mortgage loan payable .......................        (125,781)        (175,612)
   Distributions to minority interest partners .......................      (1,974,692)         (34,197)
   Contributions from minority interest partners .....................         220,006               --
                                                                           -----------      -----------
   Net cash flows used in financing activities .......................      (1,880,467)        (209,809)
                                                                           -----------      -----------

   NET CHANGE IN CASH AND CASH EQUIVALENTS ...........................       4,079,869       (4,145,726)

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

   CASH AND CASH EQUIVALENTS--End of period ..........................     $21,637,051      $14,756,088
                                                                           ===========      ===========

   SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
   Cash paid during the quarter for interest .........................     $   650,306      $   612,727
                                                                           ===========      ===========
   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, 2005
                                                     UNLESS             (UNAUDITED)              DECEMBER 31, 2004
                                                    OTHERWISE   -------------------------   --------------------------
                                                   INDICATED                 ESTIMATED                     ESTIMATED
PROPERTY NAME          OWNERSHIP    CITY, STATE    (UNAUDITED)    COST      MARKET VALUE       COST       MARKET VALUE
-------------         -----------  -------------   -----------  --------    ------------    -----------    -----------
<S>                      <C>      <C>                <C>        <C>            <C>           <C>             <C>
REAL ESTATE INVESTMENTS

OFFICES
750 Warrenville           WO         Lisle, IL       103,193   $23,173,035    $9,699,984    $23,173,036    $10,098,838
Oakbrook Terrace          WO       Oakbrook, IL      123,734    14,833,796     9,800,000     14,833,796      9,698,734
Summit @ Cornell Oaks     WO      Beaverton , OR     72,109     11,936,409     9,600,005     11,934,209      9,644,005
Westpark                  WO       Brentwood, TN     97,199     10,750,310    11,341,339     10,708,970     11,151,327
Financial Plaza           WO       Brentwood, TN     95,768     12,333,151    11,100,042     12,333,151     10,966,233
----------------------------------------------------------------------------------------------------------------------
                            Offices % as of 3/31/05    27%      73,026,701    51,541,370     72,983,162     51,559,137
APARTMENTS
Brookwood Apartments      WO        Atlanta, GA     240 Units   17,810,816    16,877,037     17,344,994     16,616,914
Dunhill Trace Apartments  WO        Raleigh, NC     250 Units   16,092,903    18,009,186     16,083,715     18,000,660
Riverbend Apartments      CJV    Jacksonville, FL   458 Units   20,024,229    23,100,000     20,015,959     22,600,000
SIMA Apartments           CJV    Gresham/Salem, OR  201 Units    8,217,822     9,300,000     12,004,323     13,900,000
----------------------------------------------------------------------------------------------------------------------
                           Apartments % as of 3/31/05  35%      62,145,770    67,286,223     65,448,991     71,117,574
RETAIL
King's Market             WO       Rosewell, GA      314,358    33,934,842    21,413,090     33,864,392     21,765,286
Hampton Towne Center      WO        Hampton, VA      174,540    18,031,496    22,200,000     18,031,495     21,000,000
White Marlin Mall         CJV     Ocean City, MD     186,016    15,234,838    19,800,000     15,229,878     19,300,000
Kansas City Portfolio     EJV   Kansas City, KS;MO   487,660    11,305,524    12,231,941     11,286,726     12,126,466
----------------------------------------------------------------------------------------------------------------------
                             Retail % as of 3/31/05    40%      78,506,700    75,645,031     78,412,491     74,191,752
INDUSTRIAL
Smith Road                WO        Aurora, CO       277,930    10,692,797    11,200,175     10,692,625     10,204,072
----------------------------------------------------------------------------------------------------------------------
                           Industrial % as of 3/31/05  6%       10,692,797    11,200,175     10,692,625     10,204,072
HOTEL
Portland Crown Plaza      CJV     Lake Oswego, OR   161 Rooms    8,396,046     9,050,000      8,334,342      8,300,000
----------------------------------------------------------------------------------------------------------------------
                              Hotel % as of 3/31/05    5%        8,396,046     9,050,000      8,334,342      8,300,000
LAND
Gateway Village           EJV    Blue Springs, MO                      100           100            100            100
----------------------------------------------------------------------------------------------------------------------
                              Land % as of 03/31/05    0%              100           100            100            100
MORTGAGE AND OTHER LOANS RECEIVABLE
Englar K-Mart             MD      Westminster, MD                2,583,241     2,583,241      1,332,060      1,332,060
----------------------------------------------------------------------------------------------------------------------
 Mortgage and Other Loans Receivable% as of 3/31/05    1%        2,583,241     2,583,241      1,332,060      1,332,060

TOTAL REAL ESTATE INVESTMENTS AS A PERCENTAGE OF
NET ASSETS AS OF 3/31/05                              114%     235,351,355   217,306,140    237,203,771    216,704,695
                                                      =====    ===========   ===========    ===========    ===========
</TABLE>
WO -- Wholly Owned Investment
CJV -- Consolidated Joint Venture
EJV -- Joint Venture Investment accounted for under the equity method
MD -- Mezzanine Debt


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






                                       12
<PAGE>

           THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

                      CONSOLIDATED SCHEDULES OF INVESTMENTS

<TABLE>
<CAPTION>
                                                                             MARCH 31, 2005
                                                                               (UNAUDITED)                DECEMBER 31, 2004
                                                                        ---------------------------   -------------------------
                                                               FACE                     ESTIMATED                    ESTIMATED
                                                              AMOUNT        COST       MARKET VALUE      COST      MARKET VALUE
                                                            ----------  -----------    ------------   -----------  ------------
<S>                                                         <C>          <C>            <C>           <C>            <C>
CASH AND CASH EQUIVALENTS -- Percentage of Net Assets                                         11.3%                        9.4%
Federal Home Loan Banks, 2.4640%, April 1, 2005 ......      20,862,000   $20,860,592     20,860,592   $        --            --
Federal Home Loan Bank, 6.450%, January 3, 2005 ......      19,457,000            --             --    19,455,135    19,455,135
                                                                         -----------    ------------  ------------  -----------
TOTAL CASH EQUIVALENTS ...............................                    20,860,592     20,860,592    19,455,135    19,455,135
CASH .................................................                       776,459        776,459    (1,897,953)   (1,897,953)
                                                                         -----------    ------------  ------------  -----------
TOTAL CASH AND CASH EQUIVALENTS ......................                   $21,637,051    $21,637,051   $17,557,182    17,557,182
                                                                         ===========    ===========   ===========   ===========
</TABLE>
        THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED
                             FINANCIAL STATEMENTS.
























                                       13
<PAGE>

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS OF

           THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

                             MARCH 31, 2005 AND 2004

                                   (UNAUDITED)

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

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

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

NOTE 2: RELATED PARTY TRANSACTIONS

Pursuant to an investment management agreement, Prudential Investment Management
("PIM") charges the Partnership a daily  investment  management fee at an annual
rate of 1.25% of the average daily gross asset valuation of the Partnership. For
the three  months  ended  March 31,  2005 and 2004  investment  management  fees
incurred by the Partnership were $673,537 and $635,701, respectively.

The Partnership also reimburses PIM for certain administrative services rendered
by PIM. The amounts  incurred for the three months ended March 31, 2005 and 2004
were $53,907 and $92,722,  respectively,  and are  classified as  administrative
expense in the Consolidated Statements of Operations.

NOTE 3: COMMITMENTS AND CONTINGENCIES

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

As of March 31, 2005, the Partnership had the following outstanding  commitments
to purchase real estate or fund additional  expenditures on previously  acquired
properties and loan take-out agreements:

                                               COMMITMENTS
                        PROPERTY TYPE            (000'S)
                        -------------          -----------
                           Retail              $    12,000
                           Other                     1,600
                                               -----------
                           Total               $    13,600
                                               ===========





                                       14
<PAGE>

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS OF

           THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

                             MARCH 31, 2005 AND 2004

                                   (UNAUDITED)

NOTE 3: COMMITMENTS AND CONTINGENCIES (CONTINUED)

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

NOTE 4: FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
                                                                     FOR THE THREE MONTHS ENDED MARCH 31,
                                                              -----------------------------------------------------
                                                               2005        2004       2003        2002        2001
                                                              ------      ------     ------      ------      ------
<S>                                                           <C>         <C>        <C>         <C>         <C>
PER SHARE(UNIT) OPERATING PERFORMANCE:
Net Asset Value, beginning of period .....................    $26.15      $24.66     $24.11      $23.82      $22.74
                                                              ------      ------     ------      ------      ------
INCOME FROM INVESTMENT OPERATIONS:
Investment income, before management fee .................      0.36        0.35       0.39        0.42        0.39
Management fee ...........................................     (0.09)      (0.09)     (0.08)      (0.07)      (0.07)
Net realized and unrealized gain (loss) on investments ...      0.36       (0.08)     (0.49)      (0.45)      (0.07)
                                                              ------      ------     ------      ------      ------
   Net Increase in Net Assets Resulting from Operations ..      0.63        0.18      (0.18)      (0.10)       0.25
                                                              ------      ------     ------      ------      ------
NET ASSET VALUE, END OF PERIOD ...........................    $26.78      $24.84     $23.93      $23.72      $22.99
                                                              ======      ======     ======      ======      ======
TOTAL RETURN, BEFORE MANAGEMENT FEE (a): .................      2.79%       1.10%     (0.45)%     (0.12)%      1.46%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, end of period (in millions) ..................      $191        $183       $183       $197         $209
   Ratios to average net assets (b):
      Total Portfolio Level Expenses .....................      0.36%       0.35%      0.31%       0.31%       0.32%
      Net Investment Income ..............................      1.43%       1.41%      1.60%       1.80%       1.74%
</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)
   -------------------------------------------------------------------------
   Beginning Net Asset Value + Time Weighted Contributions -- Time Weighted
                                                              Distributions

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











                                       15
<PAGE>

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

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

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

(a) LIQUIDITY AND CAPITAL RESOURCES

As of March 31, 2005, the  Partnership's  liquid assets,  consisting of cash and
cash equivalents, were approximately $21.6 million, an increase of approximately
$4.0 million from $17.6 million at December 31, 2004.  Excluding  operating cash
flow generated by the  Partnership's  assets,  the increase was primarily due to
sales proceeds  received in connection  with the sale of the apartment  property
located  in Salem,  Oregon.  Sources  of  liquidity  include  net cash flow from
property   operations,   interest  from  short-term   investments,   sales,  and
financings.  The Partnership uses cash for its real estate investment activities
and  for  distribution  to its  partners.  As of  March  31,  2005,  8.9% of the
Partnership's total assets consisted of cash and cash equivalents.

Dispositions  for the three months ended March 31, 2005 included the sale of one
apartment  complex  located in Salem,  Oregon.  The  consolidated  joint venture
between the Partnership and its co-investor sold the apartment  complex for $4.6
million.

The Partnership  made $6.0 million in distributions to the Partners during 2004.
Distributions  may be made to the Partners during 2005 based upon the percentage
of assets  invested in short-term  obligations,  taking into  consideration  the
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.

During the first three months of 2005, the Partnership spent  approximately $1.0
million on capital  improvements  to  existing  properties.  Approximately  $0.5
million was associated with the renovation of the apartment  complex in Atlanta,
Georgia,  $0.1 million was associated with the renovation and  redevelopment  of
the retail center in Roswell,  Georgia, and $0.1 million was associated with the
renovation of the hotel  property in Lake Oswego,  Oregon.  The  remaining  $0.3
million  was  associated  with  minor  capital  improvements  at  various  other
properties.

(b) RESULTS OF OPERATIONS

The following is a comparison of the Partnership's results of operations for the
periods ended March 31, 2005 and 2004.

MARCH 31, 2005 VS. MARCH 31, 2004

                         NET INVESTMENT INCOME OVERVIEW

The  Partnership's  net  investment  income for the three months ended March 31,
2005 was  approximately  $2.0  million,  an increase of $0.1  million  from $1.9
million for the prior year period.  The increase was  primarily due to increased
rents and stabilized occupancy at both office properties in Brentwood, Tennessee
and reduced  operating  expenses in the hotel  portfolio.  Partially  offsetting
these gains were the loss of income from the sale of three  apartment  complexes
in Salem, Oregon and increased rental concessions in the apartment portfolio.

Revenue from real estate and  improvements  increased  $0.3 million in the first
three  months  of 2005  from the  prior  year  period.  Administrative  expenses
remained  relatively  unchanged in the first three months of 2005 from the prior
year period.  Operating  expenses increased $0.3 million in the first quarter of
2005 from the  prior  year  period.  The  increase  is  primarily  due to higher
operating costs associated with the Partnership's hotel property in Lake Oswego,
Oregon.


                                       16
<PAGE>

                               VALUATION OVERVIEW

The  Partnership  recorded an aggregate  unrealized gain of $2.7 million for the
three  months  ended  March 31,  2005,  compared to an  unrealized  loss of $0.6
million during the prior year period. The unrealized gain during the first three
months of 2005 was  attributed  to gains in the  retail,  industrial,  and hotel
sectors.  The retail sector  recorded an unrealized  gain totaling $1.2 million,
primarily due to strengthening  market fundamentals at the Partnership's  retail
centers. The Partnership's industrial asset located in Aurora, Colorado recorded
an unrealized gain totaling $1.0 million, due to strengthening market conditions
and continued investor demand. Additionally, the Partnership's hotel property in
Lake Oswego,  Oregon recorded an unrealized gain of $0.4 million,  primarily due
to strengthening market fundamentals.

            NET GAIN (LOSS) ON REAL ESTATE INVESTMENTS SOLD OVERVIEW

On March  10,  2005,  the  Partnership  and its  co-investor  sold an  apartment
property in Salem,  Oregon for $4.6  million,  resulting  in a realized  loss of
approximately $0.2 million.

The following  table presents a comparison of the  Partnership's  sources of net
investment  income,  and realized and  unrealized  gains or losses by investment
type for the three month periods ended March 31, 2005 and 2004.
<TABLE>
<CAPTION>
                                                                    THREE MONTHS ENDED MARCH 31,
                                                                    ----------------------------
                                                                       2005             2004
                                                                    -----------      -----------
<S>                                                                 <C>              <C>
NET INVESTMENT INCOME:
Office properties ................................................  $   670,163      $   502,797
Apartment complexes ..............................................      639,230          741,550
Retail properties ................................................    1,055,401        1,158,256
Industrial properties ............................................      119,965          147,786
Hotel property ...................................................      169,536           59,731
Other (including interest income, investment mgt fee, etc.) ......     (666,501)        (688,057)
                                                                    -----------      -----------
TOTAL NET INVESTMENT INCOME ......................................  $ 1,987,794      $ 1,922,063
                                                                    ===========      ===========
NET REALIZED GAIN (LOSS) ON REAL ESTATE INVESTMENTS:
Apartment Complexes ..............................................     (198,238)              --
                                                                    -----------      -----------
TOTAL NET REALIZED GAIN (LOSS) ON REAL ESTATE INVESTMENTS ........     (198,238)              --
                                                                    -----------      -----------
NET UNREALIZED GAIN (LOSS) ON REAL ESTATE INVESTMENTS:
Office properties ................................................  $   (61,306)     $(2,079,610)
Apartment complexes ..............................................      163,700          (85,075)
Retail properties ................................................    1,191,835        1,563,107
Industrial properties ............................................      995,932           (8,506)
Hotel property ...................................................      448,917           48,984
                                                                    -----------      -----------
TOTAL NET UNREALIZED GAIN (LOSS) ON REAL ESTATE INVESTMENTS ......    2,739,078         (561,100)
                                                                    -----------      -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON REAL ESTATE INVESTMENTS  $ 2,540,840         (561,100)
                                                                    ===========      ===========
</TABLE>
OFFICE PORTFOLIO
<TABLE>
<CAPTION>
                                    NET           NET
                                 INVESTMENT    INVESTMENT        UNREALIZED        UNREALIZED
                                INCOME/LOSS   INCOME/LOSS        GAIN/(LOSS)       GAIN/(LOSS)    OCCUPANCY    OCCUPANCY
PROPERTY                           2005           2004               2005             2004           2005         2004
--------                         --------       ---------         ---------        ----------      ---------    ---------
<S>                              <C>            <C>               <C>             <C>                 <C>          <C>
THREE MONTHS ENDING MARCH 31,
-----------------------------
Lisle, IL ..........             $101,432       $  93,201         $(398,854)      $(2,104,741)        43%          44%
Brentwood, TN ......              225,685         200,286           148,673           (39,260)        97%          79%
Oakbrook Terrace, IL               66,220          63,635           101,266          (369,885)        41%          41%
Beaverton, OR ......              218,008         236,305           (46,200)               --         72%          78%
Brentwood, TN ......               58,818         (90,630)          133,809           434,276        100%           0%
                                 --------       ---------        ----------       -----------
                                 $670,163       $ 502,797        $  (61,306)      $(2,079,610)
                                 --------       ---------        ----------       -----------
</TABLE>
                              NET INVESTMENT INCOME

Net investment income for the Partnership's  office properties was approximately
$0.7  million for the three  months  ended March 31,  2005,  an increase of $0.2
million from the prior year period. The increase was primarily due to stabilized
occupancy and increased market rents at one of the  Partnership's  office assets
in Brentwood, Tennessee.



                                       17
<PAGE>

                              UNREALIZED GAIN/LOSS

The five  office  properties  owned by the  Partnership  recorded  an  aggregate
unrealized loss of  approximately  $0.1 million during the first three months of
2005. The losses were  primarily due to lower market rents and costs  associated
with  re-leasing  efforts  at the  Partnership's  office  properties  in  Lisle,
Illinois.

The five  office  properties  owned by the  Partnership  recorded  an  aggregate
unrealized loss of  approximately  $2.1 million during the first three months of
2004.  The decrease in values was primarily due to a decline in market rents,  a
decrease in occupancy due to various  near-term lease  expirations and increased
lease up cost associated with all of the office properties.

APARTMENT COMPLEXES
<TABLE>
<CAPTION>
                                  NET            NET     TOTAL UNREALIZED/
                               INVESTMENT     INVESTMENT      REALIZED       UNREALIZED
                               INCOME/LOSS   INCOME/LOSS    GAIN/(LOSS)      GAIN/(LOSS)    OCCUPANCY      OCCUPANCY
PROPERTY                          2005          2004           2005             2004          2005           2004
--------                       -----------   -----------    -----------      -----------    -----------   -----------
<S>                             <C>           <C>            <C>              <C>             <C>             <C>
THREE MONTHS ENDING MARCH 31,
-----------------------------
Atlanta, GA...................  $  71,206     $ 207,368     $ (205,698)       $ 290,000        92%            91%
Raleigh, NC...................    144,916       147,693           (661)         (65,000)       92%            93%
Jacksonville, FL..............    218,880       273,617        316,991          (28,000)       92%            91%
Gresham/Salem, OR*............    204,228       112,872         53,068         (282,075)       92%            90%
                                ---------     ---------      ---------        ---------
                                $ 639,230     $ 741,550      $ 163,700        $ (85,075)
                                =========     =========      =========        =========
</TABLE>

* Net  Investment  Income for the three  months  ended March 31,  2005  reflects
  partial  period results for the apartment  property in Salem,  Oregon that was
  sold on March 10, 2005 and full period  results for the apartment  property in
  Gresham,  Oregon.  Net Investment  Income for the three months ended March 31,
  2004 reflects results for four apartment  properties located in Gresham/Salem,
  Oregon, two of which were sold prior to year-end 2004.

                              NET INVESTMENT INCOME

Net  investment  income  for the  Partnership's  apartment  properties  was $0.6
million for the three  months  ended March 31,  2005, a decrease of $0.1 million
from the prior year  period.  The  decrease  was  primarily  due to increases in
operating  expenses and rental concessions at the apartment property in Atlanta,
Georgia and soft  market  conditions  affecting  the  property in  Jacksonville,
Florida.  Partially offsetting the loss was an increase in net investment income
for the  apartment  properties in  Gresham/Salem,  Oregon due to a diminution of
mortgage interest expense resulting from the prepayment of debt.

                       TOTAL UNREALIZED/REALIZED GAIN/LOSS

The  Partnership  recorded an aggregate  unrealized  and  realized  gain of $0.2
million for the three  months ended March 31,  2005,  compared to an  unrealized
loss of $0.1  million  for the  prior  year  period.  The  unrealized  gain  was
primarily  due to  continued  investor  demand,  which has caused an increase in
valuations.

RETAIL PROPERTIES
<TABLE>
<CAPTION>
                            NET NET TOTAL UNREALIZED/
                                INVESTMENT    INVESTMENT      REALIZED     UNREALIZED
                               INCOME/LOSS   INCOME/LOSS    GAIN/(LOSS)    GAIN/(LOSS)    OCCUPANCY      OCCUPANCY
PROPERTY                          2005          2004           2005           2004           2005           2004
--------                       ----------    ----------     ----------     ----------     ----------     ----------
<S>                            <C>           <C>            <C>            <C>              <C>            <C>
THREE MONTHS ENDING MARCH 31,
------------------------------
Roswell, GA................... $  448,122    $  426,419     $ (422,646)    $  (39,710)       74%            75%
Kansas City, KS; MO...........    122,748       160,614         86,677        744,008        82%            87%
Hampton, VA...................    307,708       304,081      1,200,000        285,500       100%           100%
Ocean City, MD................    117,981       176,372        327,804        573,309        90%            99%
Westminster, MD*..............         --        31,644             --             --       N/A            N/A
Westminster, MD **............     58,842        59,126             --             --       N/A            N/A
                               ----------    ----------     ----------     ----------
                               $1,055,401    $1,158,256     $1,191,835     $1,563,107
                               ==========    ==========     ==========     ==========
</TABLE>
*  Classified as Other Real Estate Investment (Paid off September 13, 2004)

** Mortgage Loan Receivable (Acquired January 2004)


                                       18
<PAGE>

                              NET INVESTMENT INCOME

Net investment income for the  Partnership's  retail properties was $1.2 million
for the three  months  ended March 31, 2005, a decrease of $0.1 million from the
prior year period. The decrease was primarily due to near-term lease expirations
at the retail center in Ocean City, Maryland.

                              UNREALIZED GAIN/LOSS

The retail properties recorded an aggregate  unrealized gain of $1.2 million for
the three months ended March 31, 2005. The  unrealized  gain of $1.2 million was
primarily due to  strengthening  market  fundamentals  at the retail  centers in
Hampton, Virginia and Ocean City, Maryland. Partially offsetting these gains was
an  unrealized  loss of $0.4 million  recorded at the retail  center  located in
Roswell,  Georgia  due to the  likely  loss  of a  major  anchor  tenant  at the
expiration of its lease in January 2009.

The retail properties recorded an aggregate  unrealized gain of $1.6 million for
the three  months ended March 31, 2004.  The retail  center  located in Hampton,
Virginia   recorded  an  unrealized  gain  of  $0.3  million  due  to  continued
strengthening  market  fundamentals.  The retail center in Ocean City,  Maryland
recorded a net  unrealized  gain of $0.6 million due to pre-leased  expansion of
the center.  The retail centers in Kansas City,  Kansas and Missouri recorded an
aggregate  unrealized  gain of $0.7 million,  primarily due to  renovations  and
re-leasing efforts.

INDUSTRIAL PROPERTIES
<TABLE>
<CAPTION>
                                   NET          NET
                               INVESTMENT    INVESTMENT     UNREALIZED     UNREALIZED
                                 INCOME        INCOME       GAIN/(LOSS)    GAIN/(LOSS)    OCCUPANCY      OCCUPANCY
PROPERTY                          2005          2004           2005           2004          2005           2004
--------                       ---------     ---------      ---------       --------      ---------      --------
<S>                             <C>           <C>            <C>             <C>             <C>            <C>
THREE MONTHS ENDING MARCH 31,
-----------------------------
Aurora, CO....................  $ 119,965     $ 145,412      $ 995,932       $ (8,506)       78%            84%
Bolingbrook, IL...............         --         2,603             --             --        Sold September 2002
Salt Lake City, UT............         --          (229)            --             --         Sold January 2003
                                ---------     ---------      ---------       --------
                                $ 119,965     $ 147,786      $ 995,932       $ (8,506)
                                =========     =========      =========       ========
</TABLE>
                              NET INVESTMENT INCOME

Net investment income for the Partnership's industrial property was $0.1 million
for the three months ended March 31, 2005, a decrease of $0.03  million from the
prior year period.  The  decrease was  primarily  due to lower  occupancy,  as a
result of a lease termination in late 2004.

                              UNREALIZED GAIN/LOSS

The Aurora,  Colorado industrial  property owned by the Partnership  recorded an
unrealized gain of  approximately  $1.0 million for the three months ended March
31,  2005.  The  unrealized  gain  was  primarily  due to  strengthening  market
fundamentals and continuing investor demand for this product type.

The unrealized loss recorded for the first three months ended March 31, 2004 was
due to  capital  improvements  at the  property  that were not  reflected  as an
increase in market value.

HOTEL PROPERTY
<TABLE>
<CAPTION>
                                      NET           NET
                                  INVESTMENT    INVESTMENT     UNREALIZED     UNREALIZED
                                    INCOME        INCOME       GAIN/(LOSS)    GAIN/(LOSS)    OCCUPANCY   OCCUPANCY
PROPERTY                             2005          2004           2005           2004          2005        2004
------------                      ----------    -----------    -----------    -----------    ---------    --------
<S>                               <C>            <C>           <C>             <C>             <C>         <C>
THREE MONTHS ENDING MARCH 31,
-----------------------------
Lake Oswego, OR..............     $ 169,536      $ 59,731      $ 448,917       $ 48,984        62%         69%
                                  =========      ========      =========       ========
</TABLE>









                                       19
<PAGE>

                              NET INVESTMENT INCOME

Net investment income for the Partnership's  hotel property was $0.2 million for
the three  months  ended March 31,  2005,  an increase of $0.1  million from the
prior year period.  The increase was primarily  attributed to reduced  operating
expenses  and higher  average  daily rates  generated at the hotel for the first
three months ended March 31, 2005 compared to the prior year period.

                              UNREALIZED GAIN/LOSS

The Lake Oswego,  Oregon hotel  property  owned by the  Partnership  recorded an
unrealized  gain of $0.4 million for the three months ended March 31, 2005.  The
increase was primarily due to strengthening market fundamentals.

OTHER

Other net  investment  income  decreased  $0.02 million  during the three months
ended March 31, 2005 from the prior year  period.  Other net  investment  income
includes  interest income from  short-term  investments,  investment  management
fees, and portfolio level expenses.

(c) INFLATION

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

CRITICAL ACCOUNTING POLICIES

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

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

VALUATION OF INVESTMENTS

REAL ESTATE  INVESTMENTS  -- The  Partnership's  investments  in real estate are
initially 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,  with internal updates quarterly. The Chief Real Estate Appraiser of
Prudential  Investment  Management  ("PIM") is responsible for assuring that the
valuation process provides objective and reasonable market value estimates.  The
market value of real estate  investments  does not reflect the transaction  sale
costs, which may be incurred upon disposition of real estate investments.

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

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

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

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

                                       20
<PAGE>

As described  above,  the estimated  market value of real estate and real estate
related assets is determined through an appraisal process, except for other real
estate investments, which are determined as stated above. These estimated market
values  may  vary  significantly  from the  prices  at  which  the  real  estate
investments would sell because market prices of real estate investments can only
be determined by  negotiation  between a willing buyer and seller.  Although the
estimated market values represent subjective estimates, management believes that
these estimated market values are reasonable approximations of market prices and
the  aggregate  value of  investments  in real estate is fairly  presented as of
March 31, 2005 and December 31, 2004.

OTHER ESTIMATES

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

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK


Interest Rate Risk. The  Partnership's  exposure to market rate risk for changes
in interest rates relates to approximately  34.14% (as of March 31, 2005) of its
investment  portfolio  consisting  primarily of short-term fixed rate commercial
paper and fixed and variable  interest rate debt. The  Partnership  does not use
derivative  financial  instruments.   By  policy,  the  Partnership  places  its
investments with high quality debt security issuers, limits the amount of credit
exposure to any one issuer,  limits  duration by restricting the term, and holds
investments to maturity except under unusual circumstances.

The table below presents the amounts and related weighted  interest rates of the
Partnership's cash equivalents and short-term investments at March 31, 2005:
<TABLE>
<CAPTION>
                                                                ESTIMATED MARKET
                                                                      VALUE            AVERAGE
                                                 MATURITY       (IN $ MILLIONS)     INTEREST RATE
                                              -------------   --------------------  --------------
<S>                                             <C>                  <C>                 <C>
Cash and Cash equivalents...................    0-3 months           $21.6               2.46%
</TABLE>

The table below  discloses the  Partnership's  debt as of March 31, 2005. All of
the Partnership's long-term debt bears interest at fixed rates and therefore the
fair value of these instruments is affected by changes in market interest rates.
The following  table presents  principal  cash flows (in  thousands)  based upon
maturity dates of the debt obligations and the related weighted-average interest
rates by expected maturity dates for the fixed rate debt.
<TABLE>
<CAPTION>
DEBT (IN $ THOUSANDS),             4/1/2005 -                                                               ESTIMATED
INCLUDING CURRENT PORTION           1/1/10     2006       2007    2008      2009      THEREAFTER   TOTAL   FAIR VALUE
-------------------------         ----------   ----       ----    ----      ----      ----------   -----   ----------
<S>                                  <C>       <C>        <C>    <C>        <C>         <C>        <C>        <C>
Average Fixed Interest Rate......    5.22%     5.20%      5.18%     4.99%     5.37%       6.75%       6.17%

Fixed Rate.......................    $512      $549       $588   $26,090    $9,273      $6,636     $43,648    $42,902
Variable Rate....................      --        --         --        --        --          --          --         --
                                     --------------------------------------------------------------------------------
Total Mortgage Loans Payable.....    $512      $549       $588   $26,090    $9,273      $6,636     $43,648    $42,902
                                     --------------------------------------------------------------------------------
</TABLE>
The  Partnership is exposed to market risk from tenants.  While the  Partnership
has not experienced any significant credit losses, in the event of a significant
rising interest rate environment and/or economic downturn,  delinquencies  could
increase and result in losses to the  Partnership  and the Account,  which would
adversely affect its operating results and liquidity.










                                       21
<PAGE>

ITEM 4. CONTROLS AND PROCEDURES

In order to ensure that the information we must disclose in our filings with the
Securities  and  Exchange  Commission  (the  "SEC"),  is  recorded,   processed,
summarized, and reported on a timely basis, the Company's management,  including
our Chief  Executive  Officer and Chief  Financial  Officer,  have  reviewed and
evaluated  the  effectiveness  of our  disclosure  controls and  procedures,  as
defined in Exchange Act Rules  13a-15(e)  and  15d-15(e),  as of March 31, 2005.
Based on such  evaluation,  the Chief  Executive  Officer  and  Chief  Financial
Officer have concluded  that, as of March 31, 2005, our disclosure  controls and
procedures  were  effective  in timely  alerting  them to  material  information
relating to us required to be included in our periodic  SEC  filings.  There has
been no change,  other than as  discussed  in the  following  paragraph,  in our
internal  control over  financial  reporting  during the quarter ended March 31,
2005 that has materially affected, or is reasonably likely to materially affect,
our internal control over financial reporting.

Effective  January 1, 2005 we  implemented  a new general  ledger and  financial
reporting  platform  for the  majority of our  operations.  The new  platform is
intended to improve  efficiencies  through the use of more  current  technology.
Although the  implementation  of the new platform resulted in changes in certain
of our internal  controls over financial  reporting,  we do not believe that the
implementation or the related changes in internal controls materially affect the
effectiveness of our internal control over financial reporting.

                          PART II -- OTHER INFORMATION

ITEM 5. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

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

ITEM 6. EXHIBITS

      EXHIBITS

      31.1    Section 302 Certification of the Chief Executive Officer.

      31.2    Section 302 Certification of the Chief Financial Officer.

      32.1    Section 906 Certification of the Chief Executive Officer.

      32.2    Section 906 Certification of the Chief Financial Officer.


















                                       22
<PAGE>

                                   SIGNATURES

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


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

Date:  May 13, 2005                           By: /s/ Bernard J. Jacob
      ------------------                          ---------------------------
                                                      Bernard J. Jacob
                                                      Chief Executive Officer























                                       23