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UNITED STATES
SECURITIES AND EXCHANGE COMMISSIONWASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

| | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
| | ---------------------------------------------------------------------------------------

For the quarterly period ended September 30, 2005

OR

| | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
| | ----------------------------------------------------------------------------------------

Commission file number 33-20018

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

in respect of

PRUCO LIFE OF NEW JERSEY VARIABLE CONTRACT REAL  PROPERTY ACCOUNT
(Exact name of Registrant as specified in its charter)

|New Jersey                      | 22-2426091                       
|------------------------------- | ---------------------------------
|(State or other jurisdiction of | (IRS Employer Identification No.)
|incorporation or organization)  |                                  

213 Washington Street
Newark, New Jersey 07102-2992
(973) 802-6000
(Address and Telephone Number of Registrant's Principal Executive Offices)

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    NO

Indicate by check mark whether the Registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
                                                                                                         YES    NO



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TABLE OF CONTENTS

|                                                                                                          |  |  | Page                                                                                                        | 
|--------------------------------------------------------------------------------------------------------- |  |  | ----------------------------------------------------------------------------------------------------------- | 
|                                                                                                          |  |  |                                                                                                             | 
|Part I Financial
      Information                                                                        |  |  |                                                                                                             | 
|                                                                                                          |  |  |                                                                                                             | 
|Item 1. Financial
      Statements (Unaudited)                                                            |  |  |                                                                                                             | 
|                                                                                                          |  |  |                                                                                                             | 
|A.
      PRUCO LIFE OF NEW JERSEY VARIABLE CONTRACT REAL PROPERTY ACCOUNT                                 |  |  |                                                                                                             | 
|                                                                                                          |  |  |                                                                                                             | 
|                                                                                                          |  |  | Statement
      of Net Assets  September 30, 2005 and December 31, 2004                                    | 
|                                                                                                          |  |  |                                                                                                             | 
|                                                                                                          |  |  | Statement of Operations
       Nine and Three Months Ended September 30, 2005 and 2004                     | 
|                                                                                                          |  |  |                                                                                                             | 
|                                                                                                          |  |  | Statement of Changes
      in Net Assets  Nine and Three Months Ended September 30, 2005 and
      2004    | 
|                                                                                                          |  |  |                                                                                                             | 
|                                                                                                          |  |  | Notes to the
      Financial Statements of the Real Property Account                                        | 
|                                                                                                          |  |  |                                                                                                             | 
|B.
      THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP                                       |  |  |                                                                                                             | 
|                                                                                                          |  |  |                                                                                                             | 
|                                                                                                          |  |  | Consolidated Statements
      of Assets and Liabilities  September 30, 2005 and December 31, 2004          | 
|                                                                                                          |  |  |                                                                                                             | 
|                                                                                                          |  |  | Consolidated Statements
      of Operations  Nine and Three Months Ended September 30, 2005 and
      2004 | 
|                                                                                                          |  |  |                                                                                                             | 
|                                                                                                          |  |  | Consolidated
      Statements of Changes in Net Assets                                                     | 
|                                                                                                          |  |  | Nine and Three
      Months Ended September 30, 2005 and 2004                                               | 
|                                                                                                          |  |  |                                                                                                             | 
|                                                                                                          |  |  | Consolidated
      Statements of Cash Flows  Nine and Three Months Ended September 30,
      2005 and 2004 | 
|                                                                                                          |  |  |                                                                                                             | 
|                                                                                                          |  |  | Consolidated
      Schedules of Investments  September 30, 2005 and December 31, 2004                      | 
|                                                                                                          |  |  |                                                                                                             | 
|                                                                                                          |  |  | Notes to the
      Financial Statements of the Partnership                                                  | 
|                                                                                                          |  |  |                                                                                                             | 
|Item
      2. Management's Discussion and Analysis of Financial Condition and Results
      of Operations |  |  | 16                                                                                                          | 
|                                                                                                          |  |  |                                                                                                             | 
|Item
      3. Quantitative and Qualitative Disclosures About Market Risks                                 |  |  | 24                                                                                                          | 
|                                                                                                          |  |  |                                                                                                             | 
|Item
      4. Controls and Procedures                                                                     |  |  | 26                                                                                                          | 
|                                                                                                          |  |  |                                                                                                             | 
|Part II Other
      Information                                                                           |  |  |                                                                                                             | 
|                                                                                                          |  |  |                                                                                                             | 
|Item
      4. Submission of Matters to a Vote of Security Holders                                         |  |  | 26                                                                                                          | 
|                                                                                                          |  |  |                                                                                                             | 
|Item
      6. Exhibits                                                                                    |  |  | 26                                                                                                          | 
|                                                                                                          |  |  |                                                                                                             | 
|SIGNATURES                                                                                                |  |  | 27                                                                                                          | 

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FORWARD-LOOKING STATEMENTS

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

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PART I  FINANCIAL INFORMATION

ITEM 1. Financial Statements

PRUCO LIFE OF NEW JERSEY VARIABLE CONTRACT REAL PROPERTY ACCOUNT

|                                                                                 |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|-------------------------------------------------------------------------------- | - | ----------------------------- |  | - | ----------------------------- | - | - | ----------------------------- | - | - | ----------------------------- | -
|STATEMENTS OF NET ASSETS                                                         |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|September 30, 2005 and December 31, 2004                                         |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|                                                                                 |   | September 30, 2005(unaudited) |  |   | December 31, 2004             |   |   |                               |   |   |                               |  
|                                                                                 |   |                               |  |   |                               |   |   |                               |   |  
|                                                                                 |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|ASSETS                                                                           |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|Investment in The Prudential Variable Contract                                   |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|Real Property Partnership                                                        | $ | 9,004,181                     |  | $ | 8,082,948                     |   |   |                               |   |   |                               |  
|                                                                                 |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|Net Assets                                                                       | $ | 9,004,181                     |  | $ | 8,082,948                     |   |   |                               |   |   |                               |  
|                                                                                 |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|                                                                                 |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|NET ASSETS,representing:                                                         |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|Equity of contract owners                                                        | $ | 6,726,378                     |  | $ | 6,042,260                     |   |   |                               |   |   |                               |  
|Equity of Pruco Life Insurance Company of New Jersey                             |   | 2,277,803                     |  |   | 2,040,688                     |   |   |                               |   |   |                               |  
|                                                                                 |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|                                                                                 | $ | 9,004,181                     |  | $ | 8,082,948                     |   |   |                               |   |   |                               |  
|                                                                                 |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|                                                                                 |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|Units outstanding                                                                |   | 3,453,460                     |  |   | 3,438,311                     |   |   |                               |   |   |                               |  
|                                                                                 |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|                                                                                 |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|Portfolio shares held                                                            |   | 309,093                       |  |   | 309,093                       |   |   |                               |   |   |                               |  
|Portfolio net asset value per share                                              | $ | 29.13                         |  | $ | 26.15                         |   |   |                               |   |   |                               |  
|                                                                                 |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|STATEMENTS OF OPERATIONS                                                         |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|For the nine and three months ended September 30, 2005 and 2004                  |   | 1/1/2005-9/30/2005(unaudited) |  |   | 1/1/2004-9/30/2004(unaudited) |   |   | 7/1/2005-9/30/2005(unaudited) |   |   | 7/1/2004-9/30/2004(unaudited) |  
|                                                                                 |   |                               |  |   |                               |   |   |                              
|                                                                                 |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|INVESTMENT INCOME                                                                |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|Net investment income from Partnership operations                                | $ | 286,842                       |  | $ | 244,391                       |   | $ | 103,725                       |   | $ | 86,033                        |  
|                                                                                 |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|                                                                                 |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|EXPENSES                                                                         |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|Charges to contract owners for assuming mortality risk and                       |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|expense risk and for administration                                              |   | 26,932                        |  |   | 25,434                        |   |   | 9,392                         |   |   | 8,674                         |  
|                                                                                 |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|NET INVESTMENT INCOME                                                            |   | 259,910                       |  |   | 218,957                       |   |   | 94,333                        |   |   | 77,359                        |  
|                                                                                 |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|                                                                                 |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|NET REALIZED AND UNREALIZED GAIN                                                 |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|(LOSS) ON INVESTMENTS                                                            |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|Net change in unrealized gain (loss) on investments in Partnership               |   | 579,832                       |  |   | 262,065                       |   |   | 412,104                       |   |   | 134,813                       |  
|Net realized gain (loss) on sale of investments in Partnership                   |   | 54,559                        |  |   | 0                             |   |   | (11,696                       | ) |   | 0                             |  
|                                                                                 |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|NET GAIN (LOSS) ON INVESTMENTS                                                   |   | 634,391                       |  |   | 262,065                       |   |   | 400,488                       |   |   | 134,813                       |  
|                                                                                 |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|                                                                                 |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|NET INCREASE (DECREASE) IN NET ASSETS                                            |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|RESULTING FROM OPERATIONS                                                        | $ | 894,301                       |  | $ | 481,022                       |   | $ | 494,821                       |   | $ | 212,172                       |  
|                                                                                 |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|                                                                                 |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|STATEMENTS OF CHANGES IN NET ASSETS                                              |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|For the nine and three months ended September 30, 2005 and 2004                  |   | 1/1/2005-9/30/2005(unaudited) |  |   | 1/1/2004-9/30/2004(unaudited) |   |   | 7/1/2005-9/30/2005(unaudited) |   |   | 7/1/2004-9/30/2004(unaudited) |  
|                                                                                 |   |                               |  |   |                               |   |   |                              
|                                                                                 |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|OPERATIONS                                                                       |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|Net investment income                                                            | $ | 259,910                       |  | $ | 218,957                       |   | $ | 94,333                        |   | $ | 77,359                        |  
|Net change in unrealized gain (loss) on investments in Partnership               |   | 579,832                       |  |   | 262,065                       |   |   | 382,837                       |   |   | 134,813                       |  
|Net realized gain (loss) on sale of investments in Partnership                   |   | 54,559                        |  |   | 0                             |   |   | 17,651                        |   |   | 0                             |  
|                                                                                 |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|                                                                                 |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|NET INCREASE (DECREASE) IN NET ASSETS                                            |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|RESULTING FROM OPERATIONS                                                        |   | 894,301                       |  |   | 481,022                       |   |   | 494,821                       |   |   | 212,172                       |  
|                                                                                 |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|                                                                                 |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|CAPITAL TRANSACTIONS                                                             |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|Net contributions (withdrawals) by contract owners                               |   | 23,435                        |  |   | (94,749                       | ) |   | 11,144                        |   |   | (49,067                       | )
|Net contributions (withdrawals) by Pruco Life Insurance Company
   of New Jersey |   | 3,497                         |  |   | 120,183                       |   |   | (1,751                        | ) |   | 57,741                        |  
|                                                                                 |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|                                                                                 |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|NET INCREASE (DECREASE) IN NET ASSETS                                            |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|RESULTING FROM CAPITAL TRANSACTIONS                                              |   | 26,932                        |  |   | 25,434                        |   |   | 9,393                         |   |   | 8,674                         |  
|                                                                                 |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|                                                                                 |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|TOTAL INCREASE (DECREASE) IN NET ASSETS                                          |   | 921,233                       |  |   | 506,456                       |   |   | 504,214                       |   |   | 220,846                       |  
|                                                                                 |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|NET ASSETS                                                                       |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|Beginning of period                                                              |   | 8,082,948                     |  |   | 7,846,237                     |   |   | 8,499,967                     |   |   | 8,131,847                     |  
|                                                                                 |   |                               |  |   |                               |   |   |                               |   |   |                               |  
|End of period                                                                    | $ | 9,004,181                     |  | $ | 8,352,693                     |   | $ | 9,004,181                     |   | $ | 8,352,693                     |  
|                                                                                 |   |                               |  |   |                               |   |   |                               |   |   |                               |  

The accompanying notes are an integral part of these financial statements.

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PRUCO LIFE OF NEW JERSEY VARIABLE CONTRACT REAL PROPERTY ACCOUNTNotes to Financial Statements

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 unaudited 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 accordance with the requirements of Form 10-Q and 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 September 30, 2005 and for the nine and three months ended September 30, 2005 and 2004 is unaudited; however, in the opinion of management, the interim data includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the results for the interim periods.

|B. | Investment in Partnership Interest
|-- | ----------------------------------

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

|C. | Income Recognition
|-- | ------------------

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

|D. | Equity of Pruco Life Insurance Company of New Jersey
|-- | ----------------------------------------------------

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

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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 the risk that life insurance contract owners may not live as long as estimated or annuitants may live longer than estimated and expense risk is 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 a reduction in unit values.

|B. | Administrative Charges
|-- | ----------------------

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

|C. | Cost of Insurance and Other Related Charges
|-- | -------------------------------------------

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

|D. | Deferred Sales Charge
|-- | ---------------------

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

|E. | Partial Withdrawal Charge
|-- | -------------------------

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

Note 4:  Taxes

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



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Note 5:  Net Contributions (Withdrawals) by Contract Owners

Net contract owner contributions (withdrawals)
    for the real estate investment option in Pruco Life of New Jersey’s
    variable insurance and variable annuity products for the nine and three months
    ended
    September 30, 2005 and 2004, were as follows:

|      |  |   | Nine months ended
  September 30, |   |   | Three months ended September 30, |  
|----- |  | - | --------------------------------- | - | - | -------------------------------- | -
|      |  |   | (Unaudited)                       |   |   | (Unaudited)                      |  
|      |  |   | 2005                              |   |   | 2004                             |  
|      |  |   |                                   |   |   |                                  |  
|      |  |   |                                   |   |   |                                  |  
|VAL   |  | $ | 23,322                            |   | $ | (71,475                          | )
|VLI   |  |   | (26,288                           | ) |   | (16,836                          | )
|SPVA  |  |   | 27,050                            |   |   | 0                                |  
|SPVL  |  |   | (649                              | ) |   | (6,438                           | )
|      |  |   |                                   |   |   |                                  |  
|TOTAL |  | $ | 23,435                            |   | $ | (94,749                          | )
|      |  |   |                                   |   |   |                                  |  

Note 6: Partnership Distributions

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

Note 7: Unit Information

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

|                   |  |  | September 30, 2005 |  |  | December 31, 2004  | 
|------------------ |  |  | ------------------ |  |  | ------------------ | 
|                   |  |  |                    |  |  |                    | 
|                   |  |  | (Unaudited)        |  |  |                    | 
|Units Outstanding: |  |  | 3,453,460          |  |  | 3,438,311          | 
|Unit Value:        |  |  | 2.30274 to 2.72760 |  |  | 2.08645 to 2.45484 | 

Note 8:  Financial Highlights

The ranges of total return for the nine months ended September 30, 2005 and 2004 were as follows:

|             |  |  | Nine months endedSeptember 30, | 
|------------ |  |  | ------------------------------ | 
|             |  |  | (Unaudited)                    | 
|             |  |  | 2005                           | 
|             |  |  |                                | 
|Total Return |  |  | 10.37% to 11.11%               | 

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THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY
PARTNERSHIP
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

|                                                                    | September 30, 2005
  (Unaudited) |             | December 31, 2004 |  
|------------------------------------------------------------------- | -------------------------------- | ----------- | ----------------- | -
|ASSETS                                                              |                                  |             |                   |  
|                                                                    |                                  |             |                   |  
|REAL ESTATE INVESTMENTS  At estimated market value:                |                                  |             |                   |  
|Real estate and improvements                                        |                                  |             |                   |  
|(cost:  9/30/2005  $203,173,438; 12/31/2004  $224,584,885)        | $                                | 200,335,056 |                   | $
|Real estate partnership (cost:  9/30/2005  $11,351,348;            |                                  |             |                   |  
|12/31/2004  $11,286,826)                                           |                                  | 11,451,023  |                   |  
|Mortgage and other loans receivable (cost:  9/30/2005  $3,439,317; |                                  |             |                   |  
|12/31/2004  $1,332,060)                                            |                                  | 3,439,317   |                   |  
|                                                                    |                                  |             |                   |  
|Total real estate investments                                       |                                  | 215,225,396 |                   |  
|                                                                    |                                  |             |                   |  
|CASH AND CASH EQUIVALENTS                                           |                                  | 41,612,649  |                   |  
|                                                                    |                                  |             |                   |  
|OTHER ASSETS (net of allowance for uncollectible                    |                                  |             |                   |  
|(accounts:  09/30/2005  $55,369; 12/31/2004  $46,690)             |                                  | 3,619,668   |                   |  
|                                                                    |                                  |             |                   |  
|Total assets                                                        | $                                | 260,457,713 |                   | $
|                                                                    |                                  |             |                   |  
|LIABILITIES                                                         |                                  |             |                   |  
|                                                                    |                                  |             |                   |  
|MORTGAGE LOANS PAYABLE                                              |                                  | 43,328,380  |                   |  
|                                                                    |                                  |             |                   |  
|ACCOUNTS PAYABLE AND ACCRUED EXPENSES                               |                                  | 2,982,149   |                   |  
|                                                                    |                                  |             |                   |  
|DUE TO AFFILIATES                                                   |                                  | 741,142     |                   |  
|                                                                    |                                  |             |                   |  
|OTHER LIABILITIES                                                   |                                  | 511,465     |                   |  
|                                                                    |                                  |             |                   |  
|MINORITY INTEREST                                                   |                                  | 4,890,254   |                   |  
|                                                                    |                                  |             |                   |  
|Total liabilities                                                   |                                  | 52,453,390  |                   |  
|                                                                    |                                  |             |                   |  
|COMMITMENTS AND CONTINGENCIES                                       |                                  |             |                   |  
|                                                                    |                                  |             |                   |  
|PARTNERS' EQUITY                                                    |                                  | 208,004,323 |                   |  
|                                                                    |                                  |             |                   |  
|Total liabilities and partners' equity                              | $                                | 260,457,713 |                   | $
|                                                                    |                                  |             |                   |  
|NUMBER OF SHARES OUTSTANDING AT END OF PERIOD                       |                                  | 7,140,308   |                   |  
|                                                                    |                                  |             |                   |  
|SHARE VALUE AT END OF PERIOD                                        | $                                | 29.13       |                   | $
|                                                                    |                                  |             |                   |  
|                                                                    |                                  |             |                   |  

The accompanying notes are an integral part
of these consolidated financial statements.

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THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited)

|                                                                                   | Nine Months Ended
  September 30, |            | Three Months Ended
  September 30, |  
|---------------------------------------------------------------------------------- | --------------------------------- | ---------- | ---------------------------------- | -
|                                                                                   |                                   |            |                                    |  
|                                                                                   |                                   | 2005       |                                    |  
|INVESTMENT INCOME:                                                                 |                                   |            |                                    |  
|Revenue from real estate and improvements                                          | $                                 | 20,598,665 |                                    | $
|Equity in income of real estate partnership                                        |                                   | 168,504    |                                    |  
|Interest and equity income on mortgage loans                                       |                                   |            |                                    |  
|receivable and other loans receivable                                              |                                   | 196,221    |                                    |  
|Income from other real estate investments                                          |                                   |           |                                    |  
|Interest on short-term investments                                                 |                                   | 580,537    |                                    |  
|                                                                                   |                                   |            |                                    |  
|                                                                                   |                                   |            |                                    |  
|Total investment income                                                            |                                   | 21,543,927 |                                    |  
|                                                                                   |                                   |            |                                    |  
|INVESTMENT EXPENSES:                                                               |                                   |            |                                    |  
|Operating                                                                          |                                   | 5,863,044  |                                    |  
|Investment management fee                                                          |                                   | 2,098,000  |                                    |  
|Real estate taxes                                                                  |                                   | 1,797,951  |                                    |  
|Administrative                                                                     |                                   | 3,350,266  |                                    |  
|Interest expense                                                                   |                                   | 1,652,343  |                                    |  
|Minority interest                                                                  |                                   | 156,017    |                                    |  
|                                                                                   |                                   |            |                                    |  
|Total investment expenses                                                          |                                   | 14,917,621 |                                    |  
|                                                                                   |                                   |            |                                    |  
|NET INVESTMENT INCOME                                                              |                                   | 6,626,306  |                                    |  
|                                                                                   |                                   |            |                                    |  
|REALIZED AND UNREALIZED GAIN (LOSS) ON REAL ESTATE                                 |                                   |            |                                    |  
|INVESTMENTS:                                                                       |                                   |            |                                    |  
|Net proceeds from real estate investments sold                                     |                                   | 25,122,589 |                                    |  
|Less:     Cost of real estate investments sold                                     |                                   | 26,856,771 |                                    |  
|Realization
    of prior periods unrealized                                       |                                   |            |                                    |  
|gain (loss) on real estate investments sold                                        |                                   | (3,239,094 | )                                  |  
|Minority interest in realized gain (loss) on investments sold                      |                                   | 244,547    |                                    |  
|                                                                                   |                                   |            |                                    |  
|Net gain (loss) realized on real estate                                            |                                   |            |                                    |  
|investments sold                                                                   |                                   | 1,260,364  |                                    |  
|                                                                                   |                                   |            |                                    |  
|                                                                                   |                                   |            |                                    |  
|Change in unrealized gain (loss) on real estate investments                        |                                   | 14,521,276 |                                    |  
|Less: Minority interest in unrealized gain (loss) on real estate
      investments |                                   | 1,126,684  |                                    |  
|                                                                                   |                                   |            |                                    |  
|Net unrealized gain (loss) on real estate investments                              |                                   | 13,394,592 |                                    |  
|                                                                                   |                                   |            |                                    |  
|NET REALIZED AND UNREALIZED GAIN (LOSS)                                            |                                   |            |                                    |  
|ON REAL ESTATE INVESTMENTS                                                         |                                   | 14,654,956 |                                    |  
|                                                                                   |                                   |            |                                    |  
|INCREASE (DECREASE) IN NET ASSETS RESULTING                                        |                                   |            |                                    |  
|FROM OPERATIONS                                                                    | $                                 | 21,281,262 |                                    | $
|                                                                                   |                                   |            |                                    |  

The accompanying notes are an integral part of these consolidated financial statements.

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THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS(Unaudited)

|                                            | Nine Months Ended September 30, |            
|------------------------------------------- | ------------------------------- | -----------
|                                            | 2005                            |            
|                                            |                                 |            
|INCREASE (DECREASE) IN NET ASSETS           |                                 |            
|RESULTING FROM OPERATIONS:                  |                                 |            
|Net investment income                       | $                               | 6,626,306  
|Net gain (loss) realized on real estate     |                                 |            
|investments sold                            |                                 | 1,260,364  
|Net unrealized gain (loss) from real estate |                                 |            
|investments                                 |                                 | 13,394,592 
|                                            |                                 |            
|Increase (decrease) in net assets           |                                 |            
|resulting from operations                   |                                 | 21,281,262 
|                                            |                                 |            
|NET ASSETS   Beginning of period           |                                 | 186,723,061
|                                            |                                 |            
|NET ASSETS   End of period                 | $                               | 208,004,323
|                                            |                                 |            

The accompanying notes are an integral part of these consolidated financial statements.

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THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)

|                                                                | Nine Months
  Ended
  September 30, 2005 |             | Nine Months
  Ended
  September 30, 2004 |  
|--------------------------------------------------------------- | ---------------------------------------- | ----------- | ---------------------------------------- | -
|                                                                |                                          |             |                                          |  
|CASH FLOWS FROM OPERATING ACTIVITIES:                           |                                          |             |                                          |  
|Net increase (decrease) in net assets resulting from operations | $                                        | 21,281,262  |                                          | $
|Adjustments to reconcile net increase (decrease) in net assets  |                                          |             |                                          |  
|to net cash flows from operating activities:                    |                                          |             |                                          |  
|Net realized and unrealized gain (loss) on investments          |                                          | (14,654,956 | )                                        |  
|Equity in income of real estate partnership in excess           |                                          |             |                                          |  
|of distributions                                                |                                          | (64,522     | )                                        |  
|Minority interest from operating activities                     |                                          | 156,017     |                                          |  
|Bad debt expense                                                |                                          | 60,813      |                                          |  
|(Increase) Decrease in accrued interest included in other real  |                                          |             |                                          |  
|estate investments                                              |                                          |            |                                          |  
|(Increase) Decrease in accrued interest included in mortgage    |                                          |             |                                          |  
|and other loans receivable                                      |                                          | (283,517    | )                                        |  
|(Increase) Decrease in:                                         |                                          |             |                                          |  
|Other assets                                                    |                                          | 2,633,252   |                                          |  
|Increase (Decrease) in:                                         |                                          |             |                                          |  
|Accounts payable and accrued expenses                           |                                          | (113,857    | )                                        |  
|Due to affiliates                                               |                                          | 19,723      |                                          |  
|Other liabilities                                               |                                          | (111,435    | )                                        |  
|                                                                |                                          |             |                                          |  
|Net cash flows from operating activities                        |                                          | 8,922,780   |                                          |  
|                                                                |                                          |             |                                          |  
|CASH FLOWS FROM INVESTING ACTIVITIES:                           |                                          |             |                                          |  
|Net proceeds from real estate investments sold                  |                                          | 25,122,589  |                                          |  
|Additions to real estate and improvements                       |                                          | (5,445,323  | )                                        |  
|Contribution to real estate partnership                         |                                          |            |                                          |  
|Origination of mortgage and other loans receivable              |                                          | (1,823,740  | )                                        |  
|Repayment of other real estate investments                      |                                          |            |                                          |  
|Origination of other real estate investments                    |                                          |            |                                          |  
|                                                                |                                          |             |                                          |  
|Net cash flows from (used in) investing activities              |                                          | 17,853,526  |                                          |  
|                                                                |                                          |             |                                          |  
|CASH FLOWS FROM FINANCING ACTIVITIES:                           |                                          |             |                                          |  
|Principal payments on mortgage loan payable                     |                                          | (445,387    | )                                        |  
|Proceeds from mortgage loan payable                             |                                          |            |                                          |  
|Distributions to minority interest partners                     |                                          | (2,275,452  | )                                        |  
|                                                                |                                          |             |                                          |  
|Net cash flows used in financing activities                     |                                          | (2,720,839  | )                                        |  
|                                                                |                                          |             |                                          |  
|                                                                |                                          |             |                                          |  
|NET CHANGE IN CASH AND CASH EQUIVALENTS                         |                                          | 24,055,467  |                                          |  
|                                                                |                                          |             |                                          |  
|CASH AND CASH EQUIVALENTS  Beginning of period                 |                                          | 17,557,182  |                                          |  
|                                                                |                                          |             |                                          |  
|CASH AND CASH EQUIVALENTS  End of period                       | $                                        | 41,612,649  |                                          | $
|                                                                |                                          |             |                                          |  
|SUPPLEMENTAL DISCLOSURE OF CASH FLOW                            |                                          |             |                                          |  
|INFORMATION:                                                    |                                          |             |                                          |  
|Cash paid during the six months for interest                    | $                                        | 1,818,269   |                                          | $
|                                                                |                                          |             |                                          |  

The accompanying notes are an integral part of these consolidated financial statements.

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THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

CONSOLIDATED SCHEDULES OF INVESTMENTS

|                                                                           |           |                            | Total
        Rentable
        Square
    Feet |   | September
    30, 2005(Unaudited) |   | December
    31, 2004     
|-------------------------------------------------------------------------- | --------- | -------------------------- | ---------------------------------------------- | - | --------------------------------- | - | --------------------------
|                                                                           |           |                            | Unless
    Otherwise                           |   |                                   |   |                           
|Property
    Name                                                          | Ownership | City,
    State            | Indicated
    (Unaudited)                      |   | Cost                              |   | Estimated
    Market Value
|                                                                          
|REAL ESTATE INVESTMENTS                                                    |           |                            |                                                |   |                                   |   |                           
|                                                                           |           |                            |                                                |   |                                   |   |                           
|OFFICES                                                                    |           |                            |                                                |   |                                   |   |                           
|750 Warrenville                                                            | WO        | Lisle, IL                  | 103,193                                        | $ | 23,173,335                        | $ | 10,000,300                
|Oakbrook Terrace                                                           | WO        | Oakbrook, IL               | 123,734                                        |   |                                  |   |                          
|Summit at Cornell Oaks                                                     | WO        | Beaverton , OR             | 72,109                                         |   | 11,976,098                        |   | 10,518,341                
|Westpark                                                                   | WO        | Brentwood, TN              | 97,199                                         |   | 10,798,599                        |   | 12,541,739                
|Financial Plaza                                                            | WO        | Brentwood, TN              | 95,768                                         |   | 12,333,116                        |   | 12,299,959                
|                                                                          
|                                                                           |           | Offices % as of 9/30/05    | 22%                                            |   | 58,281,148                        |   | 45,360,339                
|APARTMENTS                                                                 |           |                            |                                                |   |                                   |   |                           
|Brookwood Apartments                                                       | WO        | Atlanta, GA                | 240 Units                                      |   | 18,378,717                        |   | 17,865,859                
|Dunhill Trace Apartments                                                   | WO        | Raleigh, NC                | 250 Units                                      |   | 16,168,699                        |   | 19,024,362                
|Riverbend Apartments                                                       | CJV       | Jacksonville, FL           | 458 Units                                      |   | 20,141,655                        |   | 23,100,000                
|SIMA Apartments                                                            | CJV       | Gresham/Salem, OR          | 201 Units                                      |   |                                  |   |                          
|                                                                          
|                                                                           |           | Apartments % as of 9/30/05 | 29%                                            |   | 54,689,072                        |   | 59,990,221                
|RETAIL                                                                     |           |                            |                                                |   |                                   |   |                           
|King's Market                                                              | WO        | Rosewell, GA               | 314,358                                        |   | 37,331,411                        |   | 27,936,970                
|Hampton Towne Center                                                       | WO        | Hampton, VA                | 174,540                                        |   | 18,031,494                        |   | 25,100,000                
|White Marlin Mall                                                          | CJV       | Ocean City, MD             | 186,016                                        |   | 15,271,049                        |   | 20,900,000                
|Kansas City Portfolio                                                      | EJV       | Kansas City, KS;MO         | 487,660                                        |   | 11,351,248                        |   | 11,450,923                
|                                                                          
|                                                                           |           | Retail % as of 9/30/05     | 41%                                            |   | 81,985,202                        |   | 85,387,893                
|INDUSTRIAL                                                                 |           |                            |                                                |   |                                   |   |                           
|Smith Road                                                                 | WO        | Aurora, CO                 | 277,930                                        |   | 10,813,584                        |   | 11,247,526                
|                                                                          
|                                                                           |           | Industrial % as of 9/30/05 | 5%                                             |   | 10,813,584                        |   | 11,247,526                
|HOTEL                                                                      |           |                            |                                                |   |                                   |   |                           
|Portland Crown Plaza                                                       | CJV       | Lake Oswego, OR            | 161 Rooms                                      |   | 8,755,681                         |   | 9,800,000                 
|                                                                          
|                                                                           |           | Hotel % as of 9/30/05      | 5%                                             |   | 8,755,681                         |   | 9,800,000                 
|LAND                                                                       |           |                            |                                                |   |                                   |   |                           
|Gateway Village                                                            | EJV       | Blue Springs, MO           |                                                |   | 100                               |   | 100                       
|                                                                          
|                                                                           |           | Land % as of 9/30/05       | 0%                                             |   | 100                               |   | 100                       
|MORTGAGE AND OTHER LOANS RECEIVABLE                                        |           |                            |                                                |   |                                   |   |                           
|Englar K-Mart                                                              | MD        | Westminster, MD            |                                                |   | 3,439,317                         |   | 3,439,317                 
|                                                                          
|Mortgage and Other Loans Receivable% as of 9/30/05                         | 2%        |                            | 3,439,317                                      |   | 3,439,317                         |   | 1,332,060                 
|                                                                           |           |                            |                                                |   |                                   |   |                           
|                                                                           |           |                            |                                                |   |                                   |   |                           
|Total Real Estate Investments as a Percentage of  Net Assets as of 9/30/05 | 104%      | $                          | 217,964,103                                    | $ | 215,225,396                       | $ | 237,203,771               
|                                                                           |           |                            |                                                |   |                                   |   |                           

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

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THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

CONSOLIDATED SCHEDULES OF INVESTMENTS

|                                                      |                 |            | September
      30, 2005
      (Unaudited) |   | December 31, 2004      | 
|----------------------------------------------------- | --------------- | ---------- | ------------------------------------------ | - | ---------------------- | 
|                                                      |                 |            |                                            |   |                        | 
|                                                      | Face
    Amount |            | Cost                                       |   | Estimated
Market Value | 
|                                                      |                 |            |                                            |   |                        | 
|CASH AND CASH EQUIVALENTS  Percentage of Net Assets  |                 |            |                                            |   |                        | 
|Federal Home Loan Bank, 6.4500%,
    Jan. 3, 2005     | $               | 19,475,000 |                                            |   |                       | 
|Federal Home Loan Banks, 3.1950%,
    October 3, 2005 |                 | 39,751,000 |                                            |   | 39,740,565             | 
|                                                      |                 |            |                                            |   |                        | 
|Total Cash Equivalents                                |                 | 59,226,000 |                                            |   | 39,740,565             | 
|                                                      |                 |            |                                            |   |                        | 
|Cash                                                  |                 | 1,861,649  |                                            |   | 1,872,084              | 
|                                                      |                 |            |                                            |   |                        | 
|Total Cash and Cash Equivalents                       | $               | 61,087,649 |                                            | $ | 41,612,649             | 
|                                                      |                 |            |                                            |   |                        | 

The accompanying notes are an integral part of these consolidated financial statements.

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NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS OF
THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP
September
30, 2005 and 2004
(Unaudited)

Note 1: Summary Of Significant Accounting Policies

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

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

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

Note 2: Related Party Transactions

Pursuant to an investment management agreement, Prudential Investment Management (PIM) charges the Partnership a daily investment management fee at an annual rate of 1.25% of the average daily gross asset valuation of the
Partnership.  For the nine months ended September 30, 2005 and 2004 investment management fees incurred by the Partnership were $2,098,000 and $1,958,091, respectively.

The Partnership also reimburses PIM for certain administrative services rendered by PIM.  The amounts incurred for the nine months ended September 30, 2005 and 2004 were $40,222 and $92,722, respectively, and are classified as part of
administrative expense in the Consolidated Statements of Operations.

Note 3: Commitments and Contingencies

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

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

|Property Type |  | Commitments
    (000's) |       
|------------- |  | ----------------------- | ------
|              |  |                         |       
|Apartments    |  | $                       | 20,405
|Retail        |  |                         | 15,187
|Other         |  |                         | 1,550 
|              |  |                         |       
|Total         |  | $                       | 37,142
|              |  |                         |       

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NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS OF
THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP
September
30, 2005 and 2004
(Unaudited)

Note 3: Commitments and Contingencies (continued)

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

Note 4: Financial Highlights

|                                                       | For the Nine Months Ended September 30, |      
|------------------------------------------------------ | --------------------------------------- | -----
|                                                       |                                         |      
|                                                       | 2005                                    |      
|                                                       |                                         |      
|Per Share(Unit) Operating Performance:                 |                                         |      
|Net Asset Value, beginning of period                   | $                                       | 26.15
|Income From Investment Operations:                     |                                         |      
|Investment income, before management fee               |                                         | 1.22 
|Management fee                                         |                                         | (0.29
|Net realized and unrealized gain (loss) on investments |                                         | 2.05 
|                                                       |                                         |      
|Net Increase in Net Assets Resulting from Operations   |                                         | 2.98 
|                                                       |                                         |      
|                                                       |                                         |      
|Net Asset Value, end of period                         | $                                       | 29.13
|                                                       |                                         |      
|                                                       |                                         |      
|Total Return, before Management Fee (a):               |                                         | 12.58
|Ratios/Supplemental Data:                              |                                         |      
|Net Assets, end of period (in millions)                | $                                       | 208  
|Ratios to average net assets (b):                      |                                         |      
|Total Portfolio Level Expenses                         |                                         | 1.10 
|Net Investment Income                                  |                                         | 3.04 

|                                                                                                                                                                         
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                         
|(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.                                                                                                    

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

All of the assets of the Account are invested in 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 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 unaudited Financial Statements of the Account and the Partnership and the
related Notes included herein.

(a) Liquidity and Capital Resources

As of September 30, 2005, the Partnerships liquid assets, consisting of cash and cash equivalents, were approximately $41.6 million, an increase of approximately $24.0 million from $17.6 million at December 31, 2004.  The increase
was primarily due to net sales proceeds received in connection with three sales totaling approximately $25.0 million cash.  Sources of liquidity include net cash flow from property operations, sales, financings and interest from short-term
investments.  The Partnership uses cash for its real estate investment activities and for distribution to its partners. As of September 30, 2005, 16.0% of the Partnerships total assets consisted of cash and cash equivalents.

Dispositions for the nine months ended September 30, 2005 included the sale of one apartment complex located in Salem, Oregon, an office property located in Oakbrook Terrace, Illinois, and one apartment complex located in Gresham,
Oregon. The three investments sold for combined gross proceeds of $26.0 million.

During the first nine months of 2005, the Partnership spent approximately $5.4 million on capital improvements to existing properties. Approximately $1.0 million was associated with the renovation of an apartment complex in Atlanta,
Georgia, approximately $3.5 million was associated with the renovation and redevelopment of a retail center in Roswell, Georgia, and approximately $0.4 million was associated with the renovation of a hotel property in Lake Oswego, Oregon. The
remaining $0.5 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 nine and three month periods ended September 30, 2005 and 2004.

Net Investment Income Overview

The Partnerships net investment income for the nine months ended September 30, 2005 was approximately $6.6 million, an increase of $0.9 million from $5.7 million for the prior year period. The Partnerships net investment
income for the quarter ended September 30, 2005 was $2.4 million, an increase of $0.4 million from $2.0 million for the prior year period. The increase for both the nine-month and three-month periods was attributed to the office and hotel sectors,
due to (a) increased rents and stabilized occupancy at both office properties in Brentwood, Tennessee and (b) increased occupancy and higher average daily rates at the hotel property in Lake Oswego, Oregon.  Partially offsetting these increases were
decreases in net investment income in the apartment sector for the nine-month period and decreases in net investment income in the retail and industrial sectors for both the nine-month and three-month periods ended

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September 30, 2005. The decrease in the apartment sector was a result of rental concessions and mortgage interest incurred for the apartment property in Atlanta, Georgia that was not incurred during the first nine months of 2004. The
decrease in net investment income in the retail sector was a result of (a) increased expenses at the retail centers in Kansas City, Kansas and Kansas City, Missouri and (b) increased vacancy at the retail center in Ocean City, Maryland. The decrease
in net investment income in the industrial sector was a result of lower occupancy at the industrial property in Aurora, Colorado as a result of a lease termination in 2004.

Valuation Overview

The Partnership recorded an aggregate unrealized gain of $13.4 million for the nine months ended September 30, 2005, compared to an unrealized gain of $6.1 million during the prior year period. The unrealized gain during the first nine
months of 2005 was attributed to valuation gains in all property type sectors, primarily due to strengthening market fundamentals and continued investor demand.

The Partnership recorded an aggregate unrealized gain of $9.5 million for the three months ended September 30, 2005, compared to an unrealized gain of $3.1 million during the prior year period.  The unrealized gain for the three months
ended September 30, 2005 was primarily recorded in the office and retail sectors. The gains in the office sector were due to strengthening market fundamentals as noted above. The retail sector recorded value gains, mainly due to the completion of
the redevelopment and opening of an anchor retailer, Publix, at the retail center in Roswell, Georgia and continued investor demand at the retail center in Hampton, Virginia.

The Partnership recorded a net realized gain of $1.3 million for the nine months ended September 30, 2005. The realized gain for the nine-month period was recorded in the office and apartment sectors in connection with the sales of the
office property located in Oakbrook Terrace, Illinois and one apartment complex located in Salem, Oregon.

The Partnership recorded a realized loss of $0.3 million for the three months ended September 30, 2005. The realized loss for the three-month period was recorded in the apartment sector in connection with the sale of one apartment
complex in Gresham, Oregon.

Net Gain (Loss) on Real Estate Investments Sold Overview

On August 10, 2005, the Partnership sold one apartment complex in Gresham, Oregon for $9.9 million, resulting in a realized loss of approximately $0.3 million.

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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 nine and three month periods ended September 30, 2005 and 2004.

|                                            | Nine Months Ended September 30, |             | Three Months Ended September 30, |           
|------------------------------------------- | ------------------------------- | ----------- | -------------------------------- | ----------
|                                            |                                 | 2005        |                                  | 2004      
|                                            |                                 |             |                                  |           
|Net Investment Income:                      |                                 |             |                                  |           
|                                            |                                 |             |                                  |           
|Office properties                           |                                 |             | $2,340,225                       |           
|Apartment complexes                         |                                 | 1,718,278   |                                  | 1,982,985 
|Retail properties                           |                                 | 3,158,106   |                                  | 3,469,560 
|Industrial properties                       |                                 |             | 397,619                          |           
|Hotel property                              |                                 |             | 771,163                          |           
|Equity in income of real estate partnership |                                 |             |                                 |           
|Other (including interest income,           |                                 |             |                                  |           
|investment mgt fee, etc.)                   |                                 | (1,759,085  | )                                | (2,109,784
|                                            |                                 |             |                                  |           
|Total Net Investment Income                 |                                 |             | $6,626,306                       |           
|                                            |                                 |             |                                  |           
|Net Realized Gain (Loss) on Real Estate     |                                 |             |                                  |           
|Investments:                                |                                 |             |                                  |           
|                                            |                                 |             |                                  |           
|Apartment Complex                           |                                 |             | 209,531                          |           
|Office Building                             |                                 | 1,050,833   |                                  |           
|                                            |                                 |             |                                  |           
|Total Net Realized Gain (Loss) on Real      |                                 |             |                                  |           
|Estate Investments                          |                                 | 1,260,364   |                                  |           
|                                            |                                 |             |                                  |           
|Net Unrealized Gain (Loss) on Real Estate   |                                 |             |                                  |           
|Investments:                                |                                 |             |                                  |           
|                                            |                                 |             |                                  |           
|Office properties                           |                                 | 3,491,704   |                                  |           
|Apartment complexes                         |                                 | 1,219,842   |                                  | 2,957,522 
|Retail properties                           |                                 | 7,038,712   |                                  | 3,472,078 
|Industrial properties                       |                                 |             | 922,495                          |           
|Hotel property                              |                                 |             | 721,839                          |           
|                                            |                                 |             |                                  |           
|Total Net Unrealized Gain (Loss) on Real    |                                 |             |                                  |           
|Estate Investments                          |                                 | 13,394,592  |                                  | 6,066,910 
|                                            |                                 |             |                                  |           
|                                            |                                 |             |                                  |           
|Net Realized and Unrealized Gain (Loss) on  |                                 |             |                                  |           
|Real Estate Investments                     |                                 | $14,654,956 |                                  | $6,066,910
|                                            |                                 |             |                                  |           

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OFFICE PORTFOLIO

|Property              |   | Net
     Investment
     Income/Loss
    2005 |   |   | Net
     Investment
     Income/Loss
    2004 |   |   | Realized /
     Unrealized
     Gain/(Loss)
    2005 |   |   | Unrealized
     Gain/(Loss)
    2004 |   | Occupancy
    2005 |   | Occupancy
    2004 |  
|--------------------- | - | --------------------------------------------- | - | - | --------------------------------------------- | - | - | ---------------------------------------------------- | - | - | ------------------------------------ | - | ------------------ | - | ------------------ | -
|                     
|Nine Months Ended     |   |                                               |   |   |                                               |   |   |                                                      |   |   |                                      |   |                    |   |                    |  
|September 30,         |   |                                               |   |   |                                               |   |   |                                                      |   |   |                                      |   |                    |   |                    |  
|                      |   |                                               |   |   |                                               |   |   |                                                      |   |   |                                      |   |                    |   |                    |  
|Lisle, IL             | $ | 304,006                                       |   | $ | 298,887                                       |   | $ | (98,838                                              | ) | $ | (2,106,789                           | ) | 43                 | % | 43                 | %
|Brentwood, TN         |   | 745,503                                       |   |   | 606,990                                       |   |   | 1,300,782                                            |   |   | 1,389,806                            |   | 92                 | % | 82                 | %
|Oakbrook Terrace, IL* |   | 202,894                                       |   |   | 214,345                                       |   |   | 1,174,380                                            |   |   | (539,499                             | ) | N/A                |   | 41                 | %
|Beaverton, OR         |   | 620,283                                       |   |   | 666,350                                       |   |   | 832,446                                              |   |   | (400,000                             | ) | 75                 | % | 72                 | %
|Brentwood, TN         |   | 467,539                                       |   |   | (385,957                                      | ) |   | 1,333,767                                            |   |   | 1,253,081                            |   | 100                | % | 100                | %
|                      |   |                                               |   |   |                                               |  
|                      | $ | 2,340,225                                     |   | $ | 1,400,615                                     |   | $ | 4,542,537                                            |   | $ | (403,401                             | ) |                    |   |                    |  
|                      |   |                                               |   |   |                                               |  
|                      |   |                                               |   |   |                                               |   |   |                                                      |   |   |                                      |   |                    |   |                    |  
|Three Months Ended    |   |                                               |   |   |                                               |   |   |                                                      |   |   |                                      |   |                    |   |                    |  
|September 30,         |   |                                               |   |   |                                               |   |   |                                                      |   |   |                                      |   |                    |   |                    |  
|                      |   |                                               |   |   |                                               |   |   |                                                      |   |   |                                      |   |                    |   |                    |  
|Lisle, IL             | $ | 65,716                                        |   | $ | 114,847                                       |   | $ | 300,016                                              |   | $ | (2,048                               | ) |                    |   |                    |  
|Brentwood, TN         |   | 248,520                                       |   |   | 207,389                                       |   |   | 1,193,449                                            |   |   | 1,129,066                            |   |                    |   |                    |  
|Oakbrook Terrace, IL* |   | (50,650                                       | ) |   | 91,718                                        |   |   | 1,085                                                |   |   | (28,335                              | ) |                    |   |                    |  
|Beaverton, OR         |   | 221,588                                       |   |   | 212,959                                       |   |   | 886,642                                              |   |   | (400,000                             | ) |                    |   |                    |  
|Brentwood, TN         |   | 217,826                                       |   |   | (207,998                                      | ) |   | 1,199,958                                            |   |   | 92,213                               |   |                    |   |                    |  
|                      |   |                                               |   |   |                                               |  
|                      | $ | 703,000                                       |   | $ | 418,915                                       |   | $ | 3,581,150                                            |   | $ | 790,896                              |   |                    |   |                    |  
|                      |   |                                               |   |   |                                               |  

*Net Investment Income for the nine months ended September 30, 2005 reflects partial period results foroffice property located inOakbrook Terrace, Illinois that was sold on
June 8, 2005. Net investment incomethe three months endedSeptember 30, 2005 reflects post closing operating and administrative expenses

Net Investment Income

Net investment income for the Partnerships office properties was approximately $2.3 million for the nine months ended September 30, 2005, an increase of $0.9 million from the prior year period.  Net investment income for the
Partnerships office properties was approximately $0.7 million for the three months ended September 30, 2005, an increase of $0.3 million from the prior year period.  The increase for both periods was primarily due to stabilized occupancy and
increased market rents at both of the Partnerships office assets in Brentwood, Tennessee. Partially offsetting these increases were post closing operating and administrative expenses at the Oakbrook Terrace, Illinois office property, which was
sold during the three month period ended June 30, 2005.

Total Realized and Unrealized Gain/(Loss)

The office properties owned by the Partnership recorded an aggregate net realized and unrealized gain of approximately $4.5 million during the first nine months of 2005, compared to a net unrealized loss of $0.4 million for the prior
year period. The office properties owned by the Partnership recorded an aggregate net realized and unrealized gain of approximately $3.6 million for the three months ended September 30, 2005, compared to a net unrealized gain of $0.8 million for the
prior year period.  The gains for both the nine and three month periods were primarily due to (a) the sale of the office property in Oakbrook Terrace, Illinois and (b) strengthening market fundamentals and increases in occupancy at the office
properties located in Brentwood, Tennessee and Beaverton, Oregon.

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APARTMENT COMPLEXES

|Property           |   | Net
     Investment
     Income/Loss
    2005 |  |   | Net

     Investment
     Income/Loss
    2004 |  |   | Realized /
     Unrealized
     Gain/(Loss)
    2005 |   |   | Unrealized
     Gain/(Loss)
    2004 |   | Occupancy
    2005 |   | Occupancy
    2004 |  
|------------------ | - | --------------------------------------------- |  | - | ---------------------------------------------- |  | - | ---------------------------------------------------- | - | - | ------------------------------------ | - | ------------------ | - | ------------------ | -
|                  
|Nine Months Ended  |   |                                               |  |   |                                                |  |   |                                                      |   |   |                                      |   |                    |   |                    |  
|September 30,      |   |                                               |  |   |                                                |  |   |                                                      |   |   |                                      |   |                    |   |                    |  
|                   |   |                                               |  |   |                                                |  |   |                                                      |   |   |                                      |   |                    |   |                    |  
|Atlanta, GA        | $ | 68,002                                        |  | $ | 626,795                                        |  | $ | 215,223                                              |   | $ | 585,008                              |   | 91                 | % | 95                 | %
|Raleigh, NC        |   | 503,143                                       |  |   | 415,751                                        |  |   | 938,718                                              |   |   | 577,633                              |   | 93                 | % | 94                 | %
|Jacksonville, FL   |   | 792,840                                       |  |   | 794,333                                        |  |   | 189,443                                              |   |   | 304,325                              |   | 92                 | % | 91                 | %
|Gresham/Salem, OR* |   | 354,293                                       |  |   | 146,106                                        |  |   | 85,989                                               |   |   | 1,490,556                            |   | N/A                |   | 92                 | %
|                   |   |                                               |  |   |                                                | 
|                   | $ | 1,718,278                                     |  | $ | 1,982,985                                      |  | $ | 1,429,373                                            |   | $ | 2,957,522                            |   |                    |   |                    |  
|                   |   |                                               |  |   |                                                | 
|                   |   |                                               |  |   |                                                |  |   |                                                      |   |   |                                      |   |                    |   |                    |  
|Three Months Ended |   |                                               |  |   |                                                |  |   |                                                      |   |   |                                      |   |                    |   |                    |  
|September 30,      |   |                                               |  |   |                                                |  |   |                                                      |   |   |                                      |   |                    |   |                    |  
|                   |   |                                               |  |   |                                                |  |   |                                                      |   |   |                                      |   |                    |   |                    |  
|Atlanta, GA        | $ | 25,165                                        |  | $ | 206,259                                        |  | $ | 122,663                                              |   | $ | 309,999                              |   |                    |   |                    |  
|Raleigh, NC        |   | 238,548                                       |  |   | 120,848                                        |  |   | (51,434                                              | ) |   | (30,352                              | ) |                    |   |                    |  
|Jacksonville, FL   |   | 391,924                                       |  |   | 275,022                                        |  |   | (114,826                                             | ) |   | 369,154                              |   |                    |   |                    |  
|Gresham/Salem, OR* |   | 39,651                                        |  |   | 28,076                                         |  |   | (271,277                                             | ) |   | 1,308,261                            |   |                    |   |                    |  
|                   |   |                                               |  |   |                                                | 
|                   | $ | 695,288                                       |  | $ | 630,205                                        |  | $ | (314,874                                             | ) | $ | 1,957,062                            |   |                    |   |                    |  
|                   |   |                                               |  |   |                                                | 

* Net investment income for the nine months ended September 30, 2005 reflects partial period results for the  apartment properties in Salem, Oregon and Gresham, Oregon that were sold on March 10, 2005 and  August 10, 2005, respectively.
Net investment income for the three months ended September 30, 2005  reflects partial period results for the apartment property located in Gresham, Oregon. Net investment  income for the nine months ended September 30, 2004 and three months ended
September 30, 2004 reflects  results for four apartment properties located in Salem and Gresham, Oregon, two of which were sold on  December 14, 2004.

Net Investment Income

Net investment income for the Partnerships apartment properties was $1.7 million for the nine months ended September 30, 2005, a decrease of $0.3 million from the prior year period. The decrease was primarily due to (a) rental
concessions and mortgage interest incurred for the apartment property in Atlanta, Georgia that was not incurred during the first nine months of 2004. Partially offsetting the decrease 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 on the properties.

Net investment income for the Partnerships apartment properties was $0.7 million for the three months ended September 30, 2005, an increase of $0.1 million from the prior year period. The increase was primarily due to (a) reduced
expenses at the apartment property in Raleigh, North Carolina and (b) higher occupancy and reduced operating expenses at the apartment property in Jacksonville, Florida. Partially offsetting the increase was a decrease in net investment income for
the apartment property in Atlanta, Georgia for the reasons discussed above.

Total Realized and Unrealized Gain/(Loss)

The Partnership recorded an aggregate net unrealized and realized gain of $1.4 million for the nine months ended September 30,2005, compared to a net unrealized gain of $3.0 million for
the

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prior year period.  The net unrealized gain was primarily due to continued investor demand, which has caused an increase in valuations.

The apartment properties owned by the Partnership recorded an aggregate net unrealized and realized loss of $0.3 million for the three months ended September 30, 2005, compared to an aggregate net unrealized gain of $2.0 million for the
prior year period.  The aggregate net unrealized and realized loss was primarily due to the sale of one apartment property located in Gresham, Oregon, as previously discussed.

RETAIL PROPERTIES

|Property            |  |   | Net
     Investment
     Income/Loss
    2005 |   |   | Net
     Investment
     Income/Loss
    2004 |  |   | Unrealized
     Gain/(Loss)
    2005 |   |   | Unrealized
     Gain/(Loss)
    2004 |   | Occupancy
    2005 |   | Occupancy
    2004 |  
|------------------- |  | - | --------------------------------------------- | - | - | --------------------------------------------- |  | - | ------------------------------------ | - | - | ------------------------------------ | - | ------------------ | - | ------------------ | -
|                   
|Nine Months Ended   |  |   |                                               |   |   |                                               |  |   |                                      |   |   |                                      |   |                    |   |                    |  
|September 30,       |  |   |                                               |   |   |                                               |  |   |                                      |   |   |                                      |   |                    |   |                    |  
|                    |  |   |                                               |   |   |                                               |  |   |                                      |   |   |                                      |   |                    |   |                    |  
|Roswell, GA         |  | $ | 1,224,536                                     |   | $ | 1,154,113                                     |  | $ | 2,704,664                            |   | $ | (109,515                             | ) | 94                 | % | 78                 | %
|Kansas City, KS; MO |  |   | 141,470                                       |   |   | 344,936                                       |  |   | (740,065                             | ) |   | 1,758,986                            |   | 86                 | % | 85                 | %
|Hampton, VA         |  |   | 947,392                                       |   |   | 916,802                                       |  |   | 4,100,000                            |   |   | 981,574                              |   | 100                | % | 100                | %
|Ocean City, MD      |  |   | 654,659                                       |   |   | 700,459                                       |  |   | 974,113                              |   |   | 841,033                              |   | 87                 | % | 99                 | %
|Westminster, MD*    |  |   | (469                                          | ) |   | 246,765                                       |  |   |                                     |   |   |                                     |   | N/A                |   | N/A                |  
|Westminster, MD **  |  |   | 190,518                                       |   |   | 106,485                                       |  |   |                                     |   |   |                                     |   | N/A                |   | N/A                |  
|                    |  |   |                                               |   |   |                                               | 
|                    |  | $ | 3,158,106                                     |   | $ | 3,469,560                                     |  | $ | 7,038,712                            |   | $ | 3,472,078                            |   |                    |   |                    |  
|                    |  |   |                                               |   |   |                                               | 
|                    |  |   |                                               |   |   |                                               |  |   |                                      |   |   |                                      |   |                    |   |                    |  
|Three Months Ended  |  |   |                                               |   |   |                                               |  |   |                                      |   |   |                                      |   |                    |   |                    |  
|September 30,       |  |   |                                               |   |   |                                               |  |   |                                      |   |   |                                      |   |                    |   |                    |  
|                    |  |   |                                               |   |   |                                               |  |   |                                      |   |   |                                      |   |                    |   |                    |  
|Roswell, GA         |  | $ | 410,255                                       |   | $ | 369,753                                       |  | $ | 2,787,772                            |   | $ | (35,300                              | ) |                    |   |                    |  
|Kansas City, KS; MO |  |   | (65,481                                       | ) |   | 83,528                                        |  |   | 222,040                              |   |   | (68,253                              | ) |                    |   |                    |  
|Hampton, VA         |  |   | 332,042                                       |   |   | 305,542                                       |  |   | 2,900,000                            |   |   | 394,424                              |   |                    |   |                    |  
|Ocean City, MD      |  |   | 181,924                                       |   |   | 288,846                                       |  |   | 100,787                              |   |   | (61,254                              | ) |                    |   |                    |  
|Westminster, MD*    |  |   | (469                                          | ) |   | 103,864                                       |  |   |                                     |   |   |                                     |   |                    |   |                    |  
|Westminster, MD **  |  |   | 70,080                                        |   |   | 27,266                                        |  |   |                                     |   |   |                                     |   |                    |   |                    |  
|                    |  |   |                                               |   |   |                                               | 
|                    |  | $ | 928,351                                       |   | $ | 1,178,799                                     |  | $ | 6,010,599                            |   | $ | 229,617                              |   |                    |   |                    |  
|                    |  |   |                                               |   |   |                                               | 

* Classified as Other Real Estate Investment (mortgage paid in full September 13, 2004).
**Mortgage Loan Receivable (Acquired January 2004).

Net Investment Income

Net investment income for the Partnerships retail properties was $3.2 million for the nine months ended September 30, 2005, a decrease of $0.3 million from the prior year period. Net investment income for the Partnerships
retail properties was $0.9 million for the three months ended September 30, 2005, a decrease of $0.3 million from the prior year period. The decrease in net investment income for both the nine and three month periods was primarily due to (a)
increased expenses at the retail centers in Kansas City, Kansas and Kansas City, Missouri, (b) increased vacancy at the retail center in Ocean City, Maryland and (c) interest income received the prior year in connection with the loan made by the
Partnership to the retail center in Westminster, Maryland that was paid in full on September 13, 2004. Partially offsetting the decrease for both the nine and three month periods was (a) an increase in net investment income at the retail center in
Roswell, Georgia due to higher occupancy resulting from the opening of an anchor retailer, Publix and (b) interest income received in connection with the mortgage loan receivable made by the Partnership to the retail center in Westminster, Maryland
in January 2004.

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Unrealized Gain/(Loss)

The retail properties recorded an aggregate net unrealized gain of $7.0 million for the nine months ended September 30, 2005, compared to a net unrealized gain of $3.5 million for the prior year period. The net unrealized gain was
primarily due to (a) continued investor demand at the retail centers in Hampton, Virginia and Ocean City, Maryland that recorded a combined unrealized gain of $5.1 million and (b) completion of the redevelopment and opening of an anchor retailer,
Publix, at the retail center in Roswell, Georgia that recorded a net unrealized gain of approximately $2.7 million.  Partially offsetting these gains was a net unrealized loss of $0.7 million recorded at the retail centers located in Kansas City,
Kansas and Kansas City, Missouri due to increases in expenses.

The retail properties recorded an aggregate net unrealized gain of $6.0 million for the three months ended September 30, 2005, compared to a net unrealized gain of $0.2 million for the prior year period. The net unrealized gain was
primarily attributed to the retail centers located in Roswell, Georgia and Hampton, Virginia, as previously discussed.

INDUSTRIAL PROPERTIES

|Property           |  |   | Net
     Investment
     Income/Loss
    2005 |  |   | Net
     Investment
     Income/Loss
    2004 |   |   | Unrealized
     Gain/(Loss)
    2005 |   |   | Unrealized
     Gain/(Loss)
    2004 |   | Occupancy
    2005  |   | Occupancy
    2004 |  
|------------------ |  | - | --------------------------------------------- |  | - | --------------------------------------------- | - | - | ------------------------------------ | - | - | ------------------------------------ | - | ------------------- | - | ------------------ | -
|                  
|Nine Months Ended  |  |   |                                               |  |   |                                               |   |   |                                      |   |   |                                      |   |                     |   |                    |  
|September 30,      |  |   |                                               |  |   |                                               |   |   |                                      |   |   |                                      |   |                     |   |                    |  
|                   |  |   |                                               |  |   |                                               |   |   |                                      |   |   |                                      |   |                     |   |                    |  
|Aurora, CO         |  | $ | 397,619                                       |  | $ | 510,737                                       |   | $ | 922,495                              |   | $ | 12,745                               |   | 78                  | % | 88                 | %
|Bolingbrook, IL    |  |   | -                                             |  |   | 2,603                                         |   |   |                                     |   |   |                                     |   | Sold September 2002
|Salt Lake City, UT |  |   | -                                             |  |   | (1,500                                        | ) |   |                                     |   |   |                                     |   | Sold January 2003  
|                   |  |   |                                               |  |   |                                               |  
|                   |  | $ | 397,619                                       |  | $ | 511,840                                       |   | $ | 922,495                              |   | $ | 12,745                               |   |                     |   |                    |  
|                   |  |   |                                               |  |   |                                               |  
|                   |  |   |                                               |  |   |                                               |   |   |                                      |   |   |                                      |   |                     |   |                    |  
|Three Months Ended |  |   |                                               |  |   |                                               |   |   |                                      |   |   |                                      |   |                     |   |                    |  
|September 30,      |  |   |                                               |  |   |                                               |   |   |                                      |   |   |                                      |   |                     |   |                    |  
|                   |  |   |                                               |  |   |                                               |   |   |                                      |   |   |                                      |   |                     |   |                    |  
|Aurora, CO         |  | $ | 149,259                                       |  | $ | 191,299                                       |   | $ | (73,265                              | ) | $ | (696                                 | ) |                     |   |                    |  
|Bolingbrook, IL    |  |   |                                              |  |   |                                              |   |   |                                     |   |   |                                     |   |                     |   |                    |  
|Salt Lake City, UT |  |   |                                              |  |   | (160                                          | ) |   |                                     |   |   |                                     |   |                     |   |                    |  
|                   |  |   |                                               |  |   |                                               |  
|                   |  | $ | 149,259                                       |  | $ | 191,139                                       |   | $ | (73,265                              | ) | $ | (696                                 | ) |                     |   |                    |  
|                   |  |   |                                               |  |   |                                               |  

Net Investment Income

Net investment income for the Partnerships industrial property was $0.4 million for the nine months ended September 30, 2005, a decrease of $0.1 million from the prior year period. Net investment income for the Partnerships
industrial property was $0.1 million for the three months ended September 30, 2005, unchanged from the prior year period. The decrease for the nine month period was primarily due to lower occupancy, as a result of a lease termination in 2004.

Unrealized Gain/(Loss)

The Aurora, Colorado industrial property owned by the Partnership recorded a net unrealized gain of approximately $0.9 million for the nine months ended September 30, 2005.  The net unrealized gain was primarily due to continuing
investor demand for this product type.

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HOTEL PROPERTY

|Property           |  |   | Net
     Investment
     Income/Loss
    2005 |  |   | Net
     Investment
     Income/Loss
    2004 |  |   | Unrealized
     Gain/(Loss)
    2005 |  |   | Unrealized
     Gain/(Loss)
    2004 |  | Occupancy
    2005 |   | Occupancy
    2004 |  
|------------------ |  | - | --------------------------------------------- |  | - | --------------------------------------------- |  | - | ------------------------------------ |  | - | ------------------------------------ |  | ------------------ | - | ------------------ | -
|                  
|Nine Months Ended  |  |   |                                               |  |   |                                               |  |   |                                      |  |   |                                      |  |                    |   |                    |  
|September 30,      |  |   |                                               |  |   |                                               |  |   |                                      |  |   |                                      |  |                    |   |                    |  
|                   |  |   |                                               |  |   |                                               |  |   |                                      |  |   |                                      |  |                    |   |                    |  
|Lake Oswego, OR    |  | $ | 771,163                                       |  | $ | 402,509                                       |  | $ | 721,839                              |  | $ | 27,966                               |  | 88                 | % | 76                 | %
|                   |  |   |                                               |  |   |                                               |  |   |                                      |  |   |                                      |  |                    |   |                    |  
|                   |  |   |                                               |  |   |                                               |  |   |                                      |  |   |                                      |  |                    |   |                    |  
|Three Months Ended |  |   |                                               |  |   |                                               |  |   |                                      |  |   |                                      |  |                    |   |                    |  
|September 30,      |  |   |                                               |  |   |                                               |  |   |                                      |  |   |                                      |  |                    |   |                    |  
|                   |  |   |                                               |  |   |                                               |  |   |                                      |  |   |                                      |  |                    |   |                    |  
|Lake Oswego, OR    |  | $ | 384,709                                       |  | $ | 226,826                                       |  | $ | 48,025                               |  | $ | 144,094                              |  |                    |   |                    |  

Net Investment Income

Net investment income for the Partnerships hotel property was $0.8 million for the nine months ended September 30, 2005, an increase of $0.4 million from the prior year period.  Net investment income for the Partnerships
hotel property was $0.4 million for the three months ended September 30, 2005, an increase of $0.2 million from the prior year period. The increase for both the nine and three month periods was primarily due to increased occupancy and higher average
daily rates generated at the hotel compared to the prior year periods.

Unrealized Gain/(Loss)

The Lake Oswego, Oregon hotel property owned by the Partnership recorded a net unrealized gain of $0.7 million for the nine months ended September 30, 2005. The net unrealized gain was primarily due to strengthening market fundamentals
and the benefits associated with completion of the renovation.

Other

Other net investment income increased $0.4 million during the nine months ended September 30, 2005 from the prior year period.  Other net investment income includes interest income from short-term investments, investment management
fees, and portfolio level expenses.

(c) Inflation

The Partnerships leases with a majority of its commercial tenants provide for recoveries of expenses based upon the tenants proportionate share of, and/or increases in, real estate taxes and certain operating costs, which
may partially 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 unaudited Financial

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

Valuation of Investments

Real Estate Investments The Partnership's investments in real estate are initially carried at their purchase price.  Subsequently, real estate investments are reported at their estimated market values
based upon appraisal reports prepared by independent real estate appraisers (members of the Appraisal Institute or an equivalent organization) within a reasonable amount of time following acquisition of the real estate and no less frequently than
annually thereafter, with independent updates quarterly. The Chief Real Estate Appraiser of PIM is responsible to assure that the valuation process provides objective and reasonable market value estimates.  The market value of real estate
investments does not reflect 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 acting under duress.

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

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

As described above, the estimated market value of real estate and real estate related assets is determined through an appraisal process, except for other real estate investments, which are determined as stated above.  These estimated
market values may vary significantly from the prices at which the real estate investments would sell because market prices of real estate investments can only be determined by negotiation between a willing buyer and seller. Although the estimated
market values represent subjective estimates, management believes that these estimated market values are reasonable approximations of market prices and that the aggregate value of investments in real estate is fairly presented as of September 30,
2005 and September 30, 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 unaudited 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 40.84% (as of September 30, 2005) of its investment portfolio consisting
primarily of short-term fixed rate commercial paper and fixed and variable interest rate debt. The Partnership does not use derivative financial instruments. By policy, the Partnership places its investments with high quality debt security issuers,
limits the amount of credit exposure to any

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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 September 30, 2005:

|                          |            | Estimated Market |              
|------------------------- | ---------- | ---------------- | -------------
|                          |            | Value            | Average      
|                          | Maturity   | (in $ millions)  | Interest Rate
|                          |           
|Cash and Cash equivalents | 0-3 months | $41.6            | 3.03%        

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

|Debt (in $ thousands),
    including current portion |   | 10/1/2005-12/31/2005 |   |   | 2006 |   |   | 2007 |   |   | 2008   |   |   | 2009  |   |   | Thereafter |   |   | Total  |   |   | Estimated Fair
    Value
|---------------------------------------------------- | - | -------------------- | - | - | ---- | - | - | ---- | - | - | ------ | - | - | ----- | - | - | ---------- | - | - | ------ | - | - | ------------------------
|                                                     |   |                      |   |   |      |   |   |      |   |   |        |   |   |       |   |   |            |   |   |        |   |   |                         
|Average Fixed Interest Rate                          |   | 5.21                 | % |   | 5.20 | % |   | 5.18 | % |   | 4.99   | % |   | 5.37  | % |   | 6.75       | % |   | 6.17   | % |   |                         
|Fixed Rate                                           | $ | 67                   |   | $ | 550  |   | $ | 589  |   | $ | 26,092 |   | $ | 8,746 |   | $ | 7,284      |   | $ | 43,328 |   | $ | 42,505                  
|Variable Rate                                        |   |                     |   |   |     |   |   |     |   |   |       |   |   |      |   |   |           |   |   |       |   |   |                        
|                                                     |  
|Total Mortgage Loans Payable                         | $ | 67                   |   | $ | 550  |   | $ | 589  |   | $ | 26,092 |   | $ | 8,746 |   | $ | 7,284      |   | $ | 43,328 |   | $ | 42,505                  
|                                                     |  

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

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Item 4.  Controls and Procedures

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

PART II  OTHER INFORMATION

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

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



Item 6.  Exhibits

| | Exhibits | 
| | -------- | 

| |      |  |                                                          
| | ---- |  | ---------------------------------------------------------
| | 31.1 |  | Section 302 Certification of the Chief Executive Officer.

| |      |  |                                                          
| | ---- |  | ---------------------------------------------------------
| | 31.2 |  | Section 302 Certification of the Chief Financial Officer.
| |      |  |                                                          

| | 32.1 |  | Section 906 Certification of the Chief Executive Officer.
| | ---- |  | ---------------------------------------------------------

| |      |  |                                                          
| | ---- |  | ---------------------------------------------------------
| | 32.2 |  | Section 906 Certification of the Chief Financial Officer.

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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

|Date:          November 14, 2005 | By: | /s/  Bernard J. Jacob  
|-------------------------------- | --- | -----------------------
|                                 |     |                        
|                                 |     |                        
|                                 |     | Bernard J. Jacob       
|                                 |     | Chief Executive Officer
|                                 |     |                        

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