Filing Compare · PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY ACCOUNT

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

~~FORM 10-Q~~ _________________________________________

~~(Mark~~FORM ~~One)~~ 10-Q

~~x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934~~ __________________________________________

~~For~~(Mark ~~the quarterly period ended March 31, 2015~~ One)

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

¨For ~~TRANSITION~~the ~~REPORT~~quarterly ~~PURSUANT~~period TOended ~~SECTION~~June 30, 132015 ~~OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934~~

~~Commission file number 033-20083-01~~ OR

~~THE PRUDENTIAL~~¨ ~~INSURANCE~~TRANSITION ~~COMPANY~~REPORT PURSUANT TO SECTION 13 OR 15(d) OF ~~AMERICA~~THE SECURITIES EXCHANGE ACT OF 1934

inCommission ~~respect~~file ofnumber 033-20083-01

~~THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY ACCOUNT~~ ____________________________________________________

~~(Exact~~THE ~~name~~PRUDENTIAL ofINSURANCE ~~registrant~~COMPANY asOF ~~specified in its charter)~~ AMERICA

New Jersey		22-1211670
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)

in respect of

~~751~~THE ~~Broad~~PRUDENTIAL ~~Street~~VARIABLE CONTRACT

~~Newark,~~REAL ~~New~~PROPERTY ~~Jersey 07102~~ ACCOUNT

(~~973)~~Exact ~~802-6000~~name of registrant as specified in its charter)

~~(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 x NO ¨



New Jersey	22-1211670
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

~~Indicate~~751 byBroad check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). YES x NO ¨ Street

~~Indicate by check mark whether the registrant is a large accelerated filer~~Newark, anNew ~~accelerated~~Jersey filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. 07102

(~~Check one~~973): 802-6000

~~Large accelerated filer ¨ Accelerated filer ¨ Non-accelerated filer x~~ (DoAddress ~~not~~and ~~check~~Telephone ifNumber aof ~~smaller~~Registrant’s ~~reporting~~Principal ~~company)~~Executive ~~Smaller reporting company ¨~~Offices)

~~Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES ¨ NO x~~ ____________________________________________________

~~Table~~Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of ~~Contents~~the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES x NO ¨

~~THE~~Indicate ~~PRUDENTIAL~~by ~~VARIABLE~~check ~~CONTRACT~~mark ~~REAL~~whether ~~PROPERTY~~the ~~ACCOUNT~~registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). YES x NO ¨

~~(Registrant)~~Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

~~INDEX~~(Check one):

	Page
Forward-Looking Statement Disclosure		3
Part I - Financial Information
Item 1. Financial Statements (Unaudited)
A. THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY ACCOUNT
Statements of Net Assets – March 31, 2015 and December 31, 2014		4
Statements of Operations – Three Months Ended March 31, 2015 and 2014		4
Statements of Changes in Net Assets – Three Months Ended March 31, 2015 and 2014		4
Notes to the Financial Statements		5
B. THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP
Consolidated Statements of Assets and Liabilities – March 31, 2015 and December 31, 2014		12
Consolidated Statements of Operations – Three Months Ended March 31, 2015 and 2014		13
Consolidated Statements of Changes in Net Assets– Three Months Ended March 31, 2015 and 2014		14
Consolidated Statements of Cash Flows – Three Months Ended March 31, 2015 and 2014		15
Consolidated Schedules of Investments – March 31, 2015 and December 31, 2014		16
Notes to Consolidated Financial Statements		18
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		26
Item 3. Quantitative and Qualitative Disclosures About Market Risk		33
Item 4. Controls and Procedures		33
Part II - Other Information
Item 1A. Risk Factors		34
Item 6. Exhibits		34
Signatures		35



Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	x (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES ¨ NO x

Table of Contents

~~Forward-Looking~~THE ~~Statement~~PRUDENTIAL ~~Disclosure~~VARIABLE CONTRACT REAL PROPERTY ACCOUNT

Certain 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, 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 The Prudential Insurance Company of America, or the “Company”, or The Prudential Variable Contract Real Property Account, or 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: (1Registrant) general economic, market and political conditions, including the performance and fluctuations of fixed income, equity, real estate and other financial markets; (2) interest rate fluctuations or prolonged periods of low interest rates; (3) reestimates of our reserves for future policy benefits and claims; (4) differences between actual experience regarding mortality, morbidity, persistency, utilization, interest rates, or market returns and the assumptions we use in pricing our products, establishing liabilities and reserves or for other purposes; (5) changes in our assumptions related to deferred policy acquisition costs and value of business acquired; (6) changes in our financial strength or credit ratings; (7) investment losses and defaults; (8) competition in our product lines and for personnel; (9) changes in tax law; (10) regulatory or legislative changes, including the Dodd-Frank Wall Street Reform and Consumer Protection Act; (11) adverse determinations in litigation or regulatory matters and our exposure to contingent liabilities; (12) domestic or international military actions, natural or man-made disasters including terrorist activities or pandemic disease, or other events resulting in catastrophic loss of life; (13) ineffectiveness of risk management policies and procedures in identifying, monitoring and managing risks; (14) changes in statutory or accounting principles generally accepted in the United States of America, or “U.S. GAAP”, practices or policies; and (15) interruption in telecommunication, information technology or other operational systems or failure to maintain the security, confidentiality or privacy of sensitive data on such systems. 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. See “Risk Factors” included in our Annual Report on Form 10-K for the year ended December 31, 2014, for discussion of certain risks relating to the operation of The Prudential Variable Contract Real Property Partnership, or the “Partnership”, and investment in our securities.

This report includes real estate market data. Market data is subject to change and there are limits on the availability and reliability of raw data and other limitations and uncertainties inherent in any survey of market data. INDEX



		Page
Forward-Looking Statement Disclosure		3
Part I - Financial Information
Item 1.	Financial Statements (Unaudited)
A. THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY ACCOUNT
	Statements of Net Assets - June 30, 2015 and December 31, 2014	4
	Statements of Operations - Three and Six Months Ended June 30, 2015 and 2014	4
	Statements of Changes in Net Assets - Three and Six Months Ended June 30, 2015 and 2014	4
	Notes to the Financial Statements	5
B. THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP
	Consolidated Statements of Assets and Liabilities - June 30, 2015 and December 31, 2014	13
	Consolidated Statements of Operations - Three and Six Months Ended June 30, 2015 and 2014	14
	Consolidated Statements of Changes in Net Assets - Six Months Ended June 30, 2015 and 2014	15
	Consolidated Statements of Cash Flows - Six Months Ended June 30, 2015 and 2014	16
	Consolidated Schedules of Real Estate Investments - June 30, 2015 and December 31, 2014	17
	Notes to Consolidated Financial Statements	19
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	28
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	36
Item 4.	Controls and Procedures	36
Part II - Other Information
Item 1A.	Risk Factors	37
Item 6.	Exhibits	37
Signatures		38

~~Table of Contents~~2

~~Part~~Table I.of ~~Financial Information~~ Contents

~~ITEM~~Forward-Looking 1.Statement ~~Financial Statements (Unaudited)~~Disclosure

~~UNAUDITED~~Certain ~~FINANCIAL~~of ~~STATEMENTS~~the OFstatements 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, 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 The Prudential Insurance Company of America, or the “Company”, or The Prudential Variable Contract Real Property Account, or 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 and fluctuations of fixed income, equity, real estate and other financial markets; (2) interest rate fluctuations or prolonged periods of low interest rates; (3) reestimates of our reserves for future policy benefits and claims; (4) differences between actual experience regarding mortality, morbidity, persistency, utilization, interest rates, or market returns and the assumptions we use in pricing our products, establishing liabilities and reserves or for other purposes; (5) changes in our assumptions related to deferred policy acquisition costs and value of business acquired; (6) changes in our financial strength or credit ratings; (7) investment losses and defaults; (8) competition in our product lines and for personnel; (9) changes in tax law; (10) regulatory or legislative changes, including the Dodd-Frank Wall Street Reform and Consumer Protection Act; (11) adverse determinations in litigation or regulatory matters and our exposure to contingent liabilities; (12) domestic or international military actions, natural or man-made disasters including terrorist activities or pandemic disease, or other events resulting in catastrophic loss of life; (13) ineffectiveness of risk management policies and procedures in identifying, monitoring and managing risks; (14) changes in statutory or accounting principles generally accepted in the United States of America, or “U.S. GAAP”, practices or policies; and (15) interruption in telecommunication, information technology or other operational systems or failure to maintain the security, confidentiality or privacy of sensitive data on such systems. 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. See “Risk Factors” included in our Annual Report on Form 10-K for the year ended December 31, 2014, for discussion of certain risks relating to the operation of The Prudential Variable Contract Real Property Partnership, or the “Partnership”, and investment in our securities.

~~THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY ACCOUNT~~ 3

~~STATEMENTS~~Table OFof ~~NET ASSETS~~ Contents

~~March 31,~~Part ~~2015~~I. ~~and~~Financial ~~December 31, 2014~~ Information

	March 31, 2015		December 31, 2014
ASSETS
Investment in The Prudential Variable Contract Real Property Partnership	$	78,794,837	$	79,093,169
Net Assets	$	78,794,837	$	79,093,169
NET ASSETS, representing:
Equity of contract owners	$	65,732,822	$	65,089,739
Equity of The Prudential Insurance Company of America		13,062,015		14,003,430
	$	78,794,837	$	79,093,169
Units outstanding		26,699,212		27,271,568
Portfolio shares held		1,910,381		1,954,048
Portfolio net asset value per share	$	41.25	$	40.48

ITEM 1. Financial Statements (Unaudited)

~~STATEMENTS~~UNAUDITED OFINTERIM ~~OPERATIONS~~FINANCIAL STATEMENTS OF

For the three month periods ended March 31, 2015 and 2014
	Three Months Ended
	March 31, 2015			March 31, 2014
INVESTMENT INCOME
Net investment income allocated from The Prudential Variable Contract Real Property Partnership	$	563,849		$	757,290
EXPENSES
Charges to contract owners for assuming mortality and expense risk and for administration		124,277			120,098
NET INVESTMENT INCOME		439,572			637,192
NET RECOGNIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net unrealized gain (loss) on investments allocated from The Prudential Variable Contract Real Property Partnership		937,952			(207,289	)
NET GAIN (LOSS) ON INVESTMENTS		937,952			(207,289	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	1,377,524		$	429,903
STATEMENTS OF CHANGES IN NET ASSETS
For the three month periods ended March 31, 2015 and 2014
	Three Months Ended
	March 31, 2015			March 31, 2014
OPERATIONS
Net investment income	$	439,572		$	637,192
Net unrealized gain (loss) on investments allocated from The Prudential Variable Contract Real Property Partnership		937,952			(207,289	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		1,377,524			429,903
CAPITAL TRANSACTIONS
Net contributions (withdrawals) by contract owners		(461,137	)		(368,332	)
Net contributions (withdrawals) by The Prudential Insurance Company of America		(1,214,719	)		(1,306,173	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL TRANSACTIONS		(1,675,856	)		(1,674,505	)
TOTAL INCREASE (DECREASE) IN NET ASSETS		(298,332	)		(1,244,602	)
NET ASSETS
Beginning of period		79,093,169			77,305,072
End of period	$	78,794,837		$	76,060,470

THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY ACCOUNT

~~The~~STATEMENTS ~~accompanying~~OF ~~notes~~NET ~~are an integral part of these financial statements.~~ ASSETS

4June 30, 2015 and December 31, 2014



	June 30, 2015		December 31, 2014
ASSETS
Investment in The Prudential Variable Contract Real Property Partnership	$	79,517,570	$	79,093,169
Net Assets	$	79,517,570	$	79,093,169
NET ASSETS, representing:
Equity of contract owners	$	65,663,986	$	65,089,739
Equity of The Prudential Insurance Company of America	13,853,584		14,003,430
	$	79,517,570	$	79,093,169
Units outstanding	26,752,681		27,271,568
Portfolio shares held	1,910,381		1,954,048
Portfolio net asset value per share	$	41.62	$	40.48

~~NOTES TO UNAUDITED INTERIM FINANCIAL~~ STATEMENTS OF OPERATIONS

~~THE~~For ~~PRUDENTIAL~~the ~~VARIABLE~~three ~~CONTRACT~~and ~~REAL~~six ~~PROPERTY~~months ~~ACCOUNT~~ended June 30, 2015 and 2014

March 31, 2015



	Six Months Ended				Three Months Ended
	June 30, 2015		June 30, 2014		June 30, 2015		June 30, 2014
INVESTMENT INCOME
Net investment income allocated from The Prudential Variable Contract Real Property Partnership	$	1,208,305	$	1,463,381	$	644,456	$	706,091
EXPENSES
Charges to contract owners for assuming mortality and expense risk and for administration	251,076		241,759		126,799		121,661
NET INVESTMENT INCOME	957,229		1,221,622		517,657		584,430
NET RECOGNIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net unrealized gain (loss) on investments allocated from The Prudential Variable Contract Real Property Partnership	963,221		501,212		25,269		708,501
Net recognized gain (loss) on investments allocated from The Prudential Variable Contract Real Property Partnership	53,008		—		53,008		—
NET GAIN (LOSS) ON INVESTMENTS	1,016,229		501,212		78,277		708,501
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	1,973,458	$	1,722,834	$	595,934	$	1,292,931

~~Note~~STATEMENTS 1:OF ~~General~~CHANGES IN NET ASSETS

~~The Prudential~~For ~~Variable Contract Real Property Account (~~the ~~“Real~~three ~~Property~~and ~~Account”~~six ormonths ~~the~~ended ~~“Registrant”) was established on November~~June 2030, ~~1986~~2015 ~~by resolution of the Board of Directors of The Prudential Insurance Company of America (“Prudential” or the “Company”), as a separate investment account pursuant to New Jersey law~~ and is registered under the Securities Act of 1933, as amended. Prudential is a wholly-owned subsidiary of Prudential Financial, Inc. (“Prudential Financial”). The assets of the Real Property Account are segregated from Prudential’s other assets. The Real Property Account is used to fund benefits under certain variable life insurance and variable annuity contracts issued by Prudential. These products are Variable Appreciable Life (“PVAL”, “PVAL $100,000+ Face Value,” and “CVAL”), Discovery Plus (“PDISCO+”), and Variable Investment Plan (“VIP”). 2014

The assets of the Real Property 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 variable annuity contracts. The Real Property Account, along with the Pruco Life Variable Contract Real Property Account and the Pruco Life of New Jersey Variable Contract Real Property Account, are the sole investors in the Partnership. These financial statements should be read in conjunction with the accompanying unaudited consolidated financial statements of the Partnership.



	Six Months Ended						Three Months Ended
	June 30, 2015			June 30, 2014			June 30, 2015			June 30, 2014
OPERATIONS
Net investment income	$	957,229		$	1,221,622		$	517,657		$	584,430
Net unrealized gain (loss) on investments allocated from The Prudential Variable Contract Real Property Partnership	963,221			501,212			25,269			708,501
Net recognized gain (loss) on investments allocated from The Prudential Variable Contract Real Property Partnership	53,008			—			53,008			—
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	1,973,458			1,722,834			595,934			1,292,931
CAPITAL TRANSACTIONS
Net contributions (withdrawals) by contract owners	(1,003,206		)	(585,351		)	(542,069		)	(217,019		)
Net contributions (withdrawals) by The Prudential Insurance Company of America	(545,851		)	(967,493		)	668,868			338,680
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL TRANSACTIONS	(1,549,057		)	(1,552,844		)	126,799			121,661
TOTAL INCREASE (DECREASE) IN NET ASSETS	424,401			169,990			722,733			1,414,592
NET ASSETS
Beginning of period	79,093,169			77,305,072			78,794,837			76,060,470
End of period	$	79,517,570		$	77,475,062		$	79,517,570		$	77,475,062

The ~~Partnership~~accompanying ~~has~~notes aare ~~policy~~an ofintegral ~~investing~~part ~~at least 65%~~ of ~~its~~these ~~assets~~financial ~~in direct ownership interests in income-producing real estate and participating mortgage loans~~statements.

~~Note 2: Summary of Significant Accounting Policies~~ 4

A.NOTES ~~Basis~~TO ofTHE ~~Accounting~~UNAUDITED INTERIM FINANCIAL STATEMENTS OF

~~The~~THE ~~Unaudited~~PRUDENTIAL ~~Interim~~VARIABLE ~~Financial~~CONTRACT ~~Statements~~REAL asPROPERTY of March 31, 2015 and the statement of net assets as of December 31, 2014, which has been derived from Audited Financial Statements, have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission. ACCOUNT

InJune ~~the opinion of management~~30, all adjustments necessary for a fair statement of the financial position and results of operations have been made. All such adjustments are of a normal, recurring nature. Interim results are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Real Property Account’s Audited Financial Statements included in the Real Property Account’s Annual Report on Form 10-K for the year ended December 31, 2014. 2015

~~Use~~Note of1: ~~Estimates~~ General

The ~~preparation~~Prudential ofVariable ~~financial~~Contract ~~statements~~Real inProperty ~~conformity~~Account ~~with~~(the ~~U.S.~~“Real ~~GAAP~~Property ~~requires~~Account” ~~management~~or tothe ~~make~~“Registrant”) ~~estimates~~was ~~and~~established ~~assumptions~~on ~~that~~November 20, ~~affect~~1986 by resolution of the ~~reported~~ ~~amounts~~Board of ~~assets~~Directors ~~and~~of ~~liabilities~~The ~~and~~Prudential ~~disclosure~~Insurance Company of ~~contingent~~America ~~assets~~(“Prudential” ~~and~~or ~~liabilities~~the “Company”), as ofa ~~the~~separate ~~date~~investment ofaccount ~~the~~pursuant ~~financial~~to ~~statements~~New Jersey law and is registered under the ~~reported~~Securities ~~amounts~~Act of ~~revenues~~1933, ~~and~~as ~~expenses~~amended. ~~during~~Prudential ~~the~~is ~~reporting~~a ~~period~~wholly-owned subsidiary of Prudential Financial, Inc. ~~Actual~~(“Prudential ~~results~~Financial”). ~~could~~The ~~differ~~assets of the Real Property Account are segregated from ~~those~~ ~~estimates~~Prudential’s other assets. The ~~most~~Real ~~significant~~Property ~~estimates~~Account ~~include~~is ~~valuation~~used ofto ~~investment~~fund inbenefits ~~the~~under ~~Partnership~~certain variable life insurance and variable annuity contracts issued by Prudential. These products are Variable Appreciable Life (“PVAL”, “PVAL $100,000+ Face Value,” and “CVAL”), Discovery Plus (“PDISCO+”), and Variable Investment Plan (“VIP”).

5The assets of the Real Property 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 variable annuity contracts. The Real Property Account, along with the Pruco Life Variable Contract Real Property Account and the Pruco Life of New Jersey Variable Contract Real Property Account, are the sole investors in the Partnership. These financial statements should be read in conjunction with the accompanying unaudited consolidated financial statements of the Partnership.

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

~~NOTES~~Note TO2: ~~UNAUDITED~~Summary ~~INTERIM~~of ~~FINANCIAL~~Significant ~~STATEMENTS~~Accounting OF Policies

~~THE~~A. ~~PRUDENTIAL~~Basis ~~VARIABLE~~of ~~CONTRACT REAL PROPERTY ACCOUNT~~ Accounting

~~March~~The 31Unaudited Interim Financial Statements as of June 30, 2015 and the statement of net assets as of December 31, 2014, which has been derived from Audited Financial Statements, have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission.

~~Note~~In 2:the ~~Summary~~opinion of ~~Significant~~management, ~~Accounting~~all ~~Policies~~adjustments ~~(continued)~~necessary for a fair statement of the financial position and results of operations have been made. All such adjustments are of a normal, recurring nature. Interim results are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Real Property Account’s Audited Financial Statements included in the Real Property Account’s Annual Report on Form 10-K for the year ended December 31, 2014.

B.Use ~~Investment~~of ~~in Partnership Interest~~Estimates

The ~~investment~~preparation inof ~~the~~financial ~~Partnership~~statements isin ~~based~~conformity onwith ~~the~~U.S. ~~Real~~GAAP ~~Property~~requires ~~Account’s~~management ~~proportionate~~to ~~interest~~make ofestimates ~~the Partnership’s fair value. At March 31, 2015~~ and ~~December 31,~~assumptions ~~2014,~~that affect the ~~Real~~reported ~~Property~~amounts ~~Account’s~~of ~~interest~~assets inand ~~the~~liabilities ~~General~~and ~~Partners’~~disclosure ~~Controlling~~of ~~Interest~~contingent ~~was~~assets ~~42.2%~~and orliabilities ~~1,910,381~~as ~~shares~~of ~~and~~the ~~42.0%~~date orof ~~1,954,048~~the ~~shares,~~financial ~~respectively.~~statements ~~Properties~~and ~~owned~~the byreported ~~the Partnership~~amounts ~~are~~of ~~illiquid~~revenues and ~~their~~expenses ~~fair~~during ~~value~~the isreporting ~~based~~period. onActual ~~estimated~~results ~~fair~~could ~~value~~differ asfrom ~~discussed~~those inestimates. ~~the~~The ~~notes~~most tosignificant ~~the~~estimates ~~unaudited~~include ~~consolidated~~valuation ~~financial~~of ~~statements~~investment ofin the Partnership.

CB. ~~Income~~Investment ~~Recognition~~in Partnership Interest

~~Net~~The investment ~~income~~in orthe ~~loss,~~Partnership ~~recognized~~is ~~and~~based ~~unrealized~~on ~~gains~~the ~~and~~Real ~~losses~~Property ~~are~~Account’s ~~allocated~~proportionate ~~based~~interest ~~upon~~of the ~~monthly~~Partnership’s ~~average~~fair ~~net~~value. ~~assets~~At ~~for~~June 30, 2015 and December 31, 2014, the ~~investment~~ inReal Property Account’s share of the general partners' controlling interest of the Partnership was 42.2% ~~Amounts~~or 1,910,381 shares and 42.0% or 1,954,048 shares, respectively. Properties owned by the Partnership are illiquid and their fair value is based on estimated fair value as discussed in the ~~Real~~notes ~~Property~~to ~~Account’s~~the ~~proportionate~~unaudited ~~interest~~consolidated infinancial statements of the Partnership.

DC. ~~Equity~~Income ~~of The Prudential Insurance Company of America~~Recognition

~~Prudential~~Net ~~maintains~~investment aincome ~~position~~or inloss, ~~the~~recognized ~~Real~~and ~~Property~~unrealized ~~Account~~gains ~~for~~and ~~liquidity~~losses ~~purposes,~~are ~~including~~allocated ~~unit~~based ~~purchases~~upon ~~and~~the ~~redemptions,~~monthly ~~Partnership share~~average ~~transactions,~~net ~~and~~assets ~~expense~~for ~~processing~~the investment in the Partnership. ~~The~~Amounts ~~position~~are ~~does~~based ~~not~~on ~~affect~~the ~~contract~~Real ~~owners~~Property Account’s ~~accounts~~proportionate orinterest in the ~~related unit values~~Partnership.

There were no cash transactions at the Real Property Account level for the three months ended March 31, 2015 and the year ended December 31, 2014 as all of the transactions are settled by Prudential on behalf of the Real Property Account through a redemption or an issuance of units. Therefore, no statement of cash flows is presented for the three month periods ended March 31, 2015 and 2014. 5

~~Note~~NOTES 3:TO ~~Charges~~THE ~~and~~UNAUDITED ~~Expenses~~INTERIM FINANCIAL STATEMENTS OF

A.THE ~~Mortality~~PRUDENTIAL ~~Risk~~VARIABLE ~~and~~CONTRACT ~~Expense~~REAL ~~Risk~~PROPERTY ~~Charges~~ACCOUNT

~~Mortality~~June ~~risk and expense risk charges are determined daily using an effective annual rate of 1.2%~~30, 0.9%, 0.6% and 1.2% for PDISCO+, PVAL, PVAL $100,000 + Face Value and VIP, respectively (for PDISCO+, the 1.2% includes a 0.20% administrative charge). CVAL used the same fees and charges as the VAL face amount over $100,000. 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 contracts may exceed related charges by Prudential. The mortality risk and expense risk charges are assessed through reduction in unit values. 2015

B.Note ~~Cost~~2: Summary of ~~Insurance~~Significant ~~and~~Accounting ~~Other~~Policies ~~Related Charges~~(continued)

~~Contract~~D. ~~owner~~Equity ~~contributions~~of ~~are subject to certain deductions prior to being invested in the Real Property Account.~~ The deductions for PVAL and PVAL $100,000 + Face Value are (1) state premium taxes; and (2) transaction costs which are deducted from each premium payment to cover premium collection and processing costs. Contracts are subject to charges on each basic premium for assuming a guaranteed minimum death benefit risk. This charge compensates Prudential ~~for~~Insurance ~~the~~Company ~~risk that an insured may die at a time when the death benefit exceeds the benefit that would have been payable in the absence~~ of ~~a minimum guarantee. These charges are assessed through the redemption of units.~~ America

CPrudential maintains a position in the Real Property Account for liquidity purposes, including unit purchases and redemptions, Partnership share transactions, and expense processing. ~~Deferred~~The ~~Sales~~position ~~Charge~~does not affect contract owners’ accounts or the related unit values.

AThere ~~deferred~~were ~~sales~~no ~~charge~~cash istransactions ~~imposed~~at ~~upon~~ the ~~withdrawals~~Real ofProperty ~~certain~~Account ~~purchase~~level ~~payments to compensate Prudential~~ for ~~sales~~the ~~and~~six ~~other~~months ~~marketing expenses~~ended ~~for~~June ~~PDISCO+~~30, ~~and~~2015 ~~VIP. The amount of any sales charge will depend on the amount withdrawn~~ and the ~~number~~year ofended ~~contract~~December ~~years~~31, ~~that~~2014 ~~have~~as ~~elapsed~~all ~~since~~of the ~~contract~~transactions ~~owner~~are orsettled ~~annuitant~~by ~~made~~Prudential ~~the~~on ~~purchase~~behalf ~~payments~~of ~~deemed to be withdrawn. As~~ the ~~amount~~ ofReal ~~time~~Property ~~that~~Account ~~has~~through ~~elapsed since~~ a ~~given~~redemption ~~purchase~~or ~~payment~~an ~~made~~issuance ~~increases,~~of ~~the sales charge applicable to that purchase payment generally decreases~~units. NoTherefore, ~~sales~~no ~~charge~~statement ~~is made against the withdrawal~~ of ~~investment~~cash ~~income.~~flows ~~No sales charge~~ is ~~imposed upon~~presented ~~death~~for ~~benefit~~the ~~payments~~six ormonths ~~upon~~ended ~~transfers~~June ~~made~~30, ~~between~~2015 ~~subaccounts.~~and ~~This deferred sales charge is assessed through the redemption of units~~2014.

D.Note ~~Partial~~3: ~~Withdrawal~~Charges ~~Charge~~and Expenses

A. ~~charge~~Mortality isRisk ~~imposed by Prudential on partial withdrawals of the cash surrender value for PVAL~~ and ~~PVAL~~Expense ~~$100,000~~Risk + Face Value. 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. This charge is assessed through the redemption of units. Charges

EMortality risk and expense risk charges are determined daily using an effective annual rate of 1.2%, ~~Annual~~0.9%, ~~Maintenance~~0.6% ~~Charge~~and 1.2% for PDISCO+, PVAL, PVAL $100,000 + Face Value and VIP, respectively (for PDISCO+, the 1.2% includes a 0.20% administrative charge). CVAL used the same fees and charges as the VAL face amount over $100,000. 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 contracts may exceed related charges by Prudential. The mortality risk and expense risk charges are assessed through reduction in unit values.

AnB. ~~annual~~Cost ~~maintenance charge, applicable to PDISCO+ and VIP,~~ of ~~$30~~Insurance ~~will be deducted if~~ and ~~only~~Other ifRelated the contract fund is less than $10,000 on a contract anniversary or at the time a full withdrawal is effected, including a withdrawal to effect an annuity. The charge is made by reducing accumulation units credited to a contract owner’s account. Charges

~~Note~~Contract 4:owner ~~Taxes~~contributions are subject to certain deductions prior to being invested in the Real Property Account. The deductions for PVAL and PVAL $100,000 + Face Value are (1) state premium taxes; and (2) transaction costs which are deducted from each premium payment to cover premium collection and processing costs. Contracts are subject to charges on each basic premium for assuming a guaranteed minimum death benefit risk. This charge compensates Prudential for the risk that an insured may die at a time when the death benefit exceeds the benefit that would have been payable in the absence of a minimum guarantee. These charges are assessed through the redemption of units.

~~Prudential is taxed as a “life insurance company”, as defined by the Internal Revenue Code~~C. ~~The~~Deferred ~~results~~Sales of operations of the Real Property Account form a part of Prudential Financial’s consolidated federal tax return. Under current federal, state, and local law, no federal, state or local income taxes are payable by the Real Property Account. As such, no provision for the tax liability has been recorded in these financial statements. Prudential management will review periodically the status of the policy in the event of changes in the tax law. Charge

6A deferred sales charge is imposed upon the withdrawals of certain purchase payments to compensate Prudential for sales and other marketing expenses for PDISCO+ and VIP. The amount of any sales charge will depend on the amount withdrawn and the number of contract years that have elapsed since the contract owner or annuitant made the purchase payments deemed to be withdrawn. As the amount of time that has elapsed since a given purchase payment made increases, the sales charge applicable to that purchase payment generally decreases. No sales charge is made against the withdrawal of investment income. No sales charge is imposed upon death benefit payments or upon transfers made between subaccounts. This deferred sales charge is assessed through the redemption of units.

~~Table~~D. ofPartial ~~Contents~~Withdrawal Charge

~~NOTES~~A TOcharge ~~UNAUDITED~~is ~~INTERIM~~imposed ~~FINANCIAL~~by ~~STATEMENTS~~Prudential OFon partial withdrawals of the cash surrender value for PVAL and PVAL $100,000 + Face Value. 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. This charge is assessed through the redemption of units.

~~THE~~E. ~~PRUDENTIAL~~Annual ~~VARIABLE~~Maintenance ~~CONTRACT REAL PROPERTY ACCOUNT~~ Charge

~~March~~An 31annual maintenance charge, ~~2015~~applicable to PDISCO+ and VIP, of $30 will be deducted if and only if the contract fund is less than $10,000 on a contract anniversary or at the time a full withdrawal is effected, including a withdrawal to effect an annuity. The charge is made by reducing accumulation units credited to a contract owner’s account.

~~Note 5: Net Contributions (Withdrawals) by Contract Owners~~ 6

~~Net~~NOTES ~~contributions~~TO ~~(withdrawals)~~THE byUNAUDITED ~~contract~~INTERIM ~~owners~~FINANCIAL ~~for~~STATEMENTS ~~the Real Property Account by product for the three months ended March 31, 2015 and 2014 were as follows:~~ OF

	Three Months Ended March 31,
	2015			2014
PVAL/PVAL $100,000+ Face Value/CVAL	$	(437,659	)	$	(238,548	)
PDISCO+/VIP		(23,478	)		(129,784	)
TOTAL	$	(461,137	)	$	(368,332	)

THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY ACCOUNT

~~Note~~June 6:30, ~~Partnership Distributions~~ 2015

~~For~~Note ~~the~~4: three months ended March 31, 2015, the Partnership distributed a total of $5.0 million, which occurred on March 30, 2015. The Real Property Account’s share of this distribution was $1.8 million. For the three months ended March 31, 2014, the Partnership distributed a total of $5.0 million, which occurred on March 26, 2014. The Real Property Account’s share of this distribution was $1.8 million. Taxes

~~For~~Prudential is taxed as a “life insurance company”, as defined by the ~~three~~Internal ~~months~~Revenue ~~ended~~Code. ~~March 31~~The results of operations of the Real Property Account form a part of Prudential Financial’s consolidated federal tax return. Under current federal, ~~2015~~state, and ~~2014~~local law, ~~there~~no ~~were~~federal, nostate ~~purchases~~or oflocal ~~the Partnership~~income taxes are payable by the Real Property Account. As such, no provision for a tax liability has been recorded in these financial statements. Prudential management will review periodically the status of the policy in the event of changes in the tax law.

Note 75: ~~Unit~~Net ~~Information~~Contributions (Withdrawals) by Contract Owners

~~All~~Net ~~products~~contributions ~~referred~~(withdrawals) toby incontract ~~Note~~owners 1for the Real Property Account by product for ~~outstanding~~the ~~units~~three and ~~unit~~six ~~values~~months atended ~~March~~June 3130, 2015 and ~~December 31,~~ 2014 were as follows:

		March 31, 2015					December 31, 2014
	Six Months Ended June 30,
Units Outstanding:		26,699,212					27,271,568
	2015			2014
Unit Value:		$ 2.68950 to $ 3.10855					$ 2.64710 to $ 3.05509
PVAL/PVAL $100,000+ Face Value/CVAL	$	(962,657	)	$	(447,000	)
PDISCO+/VIP	(40,549		)	(138,351		)
TOTAL	$	(1,003,206	)	$	(585,351	)

Note 8: Financial Highlights



	Three Months Ended June 30,
	2015			2014
PVAL/PVAL $100,000+ Face Value/CVAL	$	(524,997	)	$	(208,452	)
PDISCO+/VIP	(17,072		)	(8,567		)
TOTAL	$	(542,069	)	$	(217,019	)

~~The~~Note ~~range of total return for the three months ended March 31, 2015 and 2014 were as follows~~6: Partnership Distributions

	Three Months Ended March 31,
	2015	2014
Total Return	1.60% to 1.75%	0.42% to 0.56%

For the six months ended June 30, 2015, the Partnership distributed a total of $5.0 million, which occurred on March 30, 2015. The Real Property Account’s share of this distribution was $1.8 million. For the six months ended June 30, 2014, the Partnership distributed a total of $5.0 million, which occurred on March 26, 2014. The Real Property Account’s share of this distribution was $1.8 million.

~~Note~~For 9:the ~~Related~~six ~~Party~~months ended June 30, 2015 and 2014, there were no purchases of the Partnership by the Real Property Account.

~~The~~Note ~~Real~~7: ~~Property~~Unit Account has transactions and relationships with Prudential and other affiliates. Due to these relationships, it is possible that the terms of these transactions are not the same as those that would result from transactions among unrelated parties. Information

All products referred to in Note 1 for outstanding units and unit values at June 30, 2015 and December 31, 2014 were as follows:

Prudential and its affiliates perform various services on behalf of the Partnership in which the Real Property Account invests and may receive fees for the services performed. These services include, among other things, shareholder communications, postage, transfer agency and various other record keeping and customer service functions.



	June 30, 2015			December 31, 2014
Units Outstanding:	26,752,681			27,271,568
Unit Value:	$2.70604	to	$3.13241	$2.64710	to	$3.05509

~~Table~~NOTES ofTO ~~Contents~~THE UNAUDITED INTERIM FINANCIAL STATEMENTS OF

~~NOTES~~THE TOPRUDENTIAL ~~UNAUDITED~~VARIABLE ~~INTERIM~~CONTRACT ~~FINANCIAL~~REAL ~~STATEMENTS~~PROPERTY OF ACCOUNT

~~THE~~June ~~PRUDENTIAL~~30, ~~VARIABLE CONTRACT REAL PROPERTY ACCOUNT~~ 2015

~~March~~Note ~~31,~~8: ~~2015~~Financial Highlights

~~Note~~The ~~10:~~range ~~Fair~~of ~~Value~~total ~~Measurements~~return for the three and six months ended June 30, 2015 and 2014 were as follows:

Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative fair value guidance establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows:

Level 1 – Fair value is based on unadjusted quoted prices in active markets that are accessible to the Real Property Account for identical assets or liabilities. These generally provide the most reliable evidence and should be used to measure fair value whenever available. The Real Property Account had no Level 1 assets or liabilities.

~~Level~~Note 29: Related – Fair value is based on inputs, other than Level 1 inputs, that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability through corroboration with observable market data. The Real Property Account had no Level 2 assets or liabilities. Party

~~Level~~The ~~3 – Fair value is based on significant unobservable inputs for the asset or liability. These inputs reflect the~~ Real Property Account’s ~~own~~has ~~assumptions~~transactions ~~about~~and ~~the~~relationships ~~assumptions~~with ~~that~~Prudential ~~market~~and ~~participants~~other ~~would use in pricing the asset or liability~~affiliates. ~~The~~Due ~~Real~~to ~~Property~~these ~~Account’s~~relationships, ~~Level~~it ~~3 assets consist of the investment in the Partnership which~~ is ~~based~~possible onthat the ~~Real Property~~terms ~~Account’s proportionate interest~~ of ~~the~~these ~~Partnership’s~~transactions ~~fair~~are ~~value,~~not ~~which approximates~~ the ~~Partnership’s~~same ~~net~~as ~~asset~~those ~~value.~~that ~~Properties~~would ~~owned~~result ~~by the Partnership are illiquid and fair value is based on estimates~~ from ~~property appraisal~~transactions ~~reports~~among ~~prepared~~unrelated ~~by independent real estate appraisers as discussed in the notes to the Partnership’s unaudited consolidated financial statements~~parties. ~~All of the Real Property Account’s assets were classified as Level 3.~~

~~The~~Prudential ~~purpose~~and ofits anaffiliates ~~appraisal~~perform isvarious toservices ~~estimate~~on ~~the~~behalf ~~fair value~~ of ~~real estate as of a specific date. The estimate of fair value of real estate is based on~~ the ~~conventional~~Partnership ~~approaches~~in ~~to value, all of~~ which ~~require~~ the ~~exercise~~Real ofProperty ~~subjective~~Account ~~judgment.~~invests ~~The three approaches are: (1) current cost of reproducing the real estate less deterioration~~ and ~~functional~~may ~~and~~receive ~~economic~~fees ~~obsolescence; (2) discounting~~for a series of income streams and reversion at a specific yield or by directly capitalizing a single three month period income estimate by an appropriate factor; and (3) value indicated by recent sales of comparable real estate in the ~~market~~services performed. InThese ~~the~~services ~~reconciliation~~include, ofamong ~~these~~other ~~three approaches~~things, ~~the~~shareholder ~~independent~~communications, ~~appraiser uses one or a combination of them~~postage, totransfer ~~come~~agency upand ~~with~~various ~~the~~other ~~approximate~~record ~~value~~keeping ~~for~~and ~~the~~customer ~~type~~service ~~of real estate in the market~~functions.

~~During~~Note ~~the~~10: ~~three~~Fair ~~months~~Value ~~ended March 31, 2015 and 2014, there were no transfers between Level 1, Level 2, and Level 3.~~ Measurements

8Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative fair value guidance establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows:

~~Table~~Level of1 ~~Contents~~– Fair value is based on unadjusted quoted prices in active markets that are accessible to the Real Property Account for identical assets or liabilities. These generally provide the most reliable evidence and should be used to measure fair value whenever available. The Real Property Account had no Level 1 assets or liabilities.

~~NOTES~~Level TO2 ~~UNAUDITED~~– ~~INTERIM~~Fair ~~FINANCIAL~~value ~~STATEMENTS~~is OFbased on inputs, other than Level 1 inputs, that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability through corroboration with observable market data. The Real Property Account had no Level 2 assets or liabilities.

~~THE~~Level ~~PRUDENTIAL~~3 ~~VARIABLE~~– ~~CONTRACT~~Fair ~~REAL~~value ~~PROPERTY~~is ~~ACCOUNT~~based on significant unobservable inputs for the asset or liability. These inputs reflect the entity's assumptions about how market participants would price the asset or liability. The Real Property Account’s Level 3 assets consist of the investment in the Partnership, which is based on the Real Property Account’s proportionate interest of the Partnership’s fair value, which approximates the Partnership’s net asset value. Properties owned by the Partnership are illiquid and fair value is based on estimates from property appraisal reports prepared by independent real estate appraisers as discussed in the notes to the Partnership’s unaudited consolidated financial statements. All of the Real Property Account’s assets were classified as Level 3.

~~March~~The 31purpose of an appraisal is to estimate the fair value of real estate as of a specific date. The estimate of fair value of real estate is based on the conventional approaches to value, ~~2015~~all of which require the exercise of subjective judgment. The three approaches are: (1) current cost of reproducing the real estate less deterioration and functional and economic obsolescence; (2) discounting a series of income streams and reversion at a specific yield or by directly capitalizing a single year period income estimate by an appropriate factor; and (3) value indicated by recent sales of comparable real estate in the market. In the reconciliation of these three approaches, the independent appraiser uses one or a combination of them, to come up with the approximate value for the type of real estate in the market.

~~Note~~During ~~10:~~the ~~Fair~~six ~~Value~~months ~~Measurements~~ended ~~(continued)~~June 30, 2015 and 2014, there were no transfers between Level 1, Level 2, and Level 3.

In general, the input values in the appraisal process are unobservable, therefore unless indicated otherwise, the underlying investments in the Partnership are classified as Level 3 under the fair value hierarchy. The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities. 8

Table 1of ~~below summarizes the assets measured at fair value on a recurring basis and their respective level in the fair value hierarchy.~~ Contents

~~Table~~NOTES 1:TO UNAUDITED INTERIM FINANCIAL STATEMENTS OF

	($ in 000’s)
	Fair value measurements at March 31, 2015
	Total		Level 1		Level 2		Level 3
Assets:
Investment in The Prudential Variable Contract Real Property Partnership	$	78,795	$	—	$	—	$	78,795
	($ in 000’s)
	Fair value measurements at December 31, 2014
	Total		Level 1		Level 2		Level 3
Assets:
Investment in The Prudential Variable Contract Real Property Partnership	$	79,093	$	—	$	—	$	79,093

THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY ACCOUNT

9June 30, 2015

~~Table~~Note of10: ~~Contents~~Fair Value Measurements (continued)

~~NOTES~~In TOgeneral, ~~UNAUDITED~~the ~~INTERIM~~input ~~FINANCIAL~~values ~~STATEMENTS~~in OFthe appraisal process are unobservable, therefore unless indicated otherwise, the underlying investments in the Partnership are classified as Level 3 under the fair value hierarchy. The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

~~THE~~Table ~~PRUDENTIAL~~1 ~~VARIABLE~~below ~~CONTRACT~~summarizes ~~REAL~~the ~~PROPERTY~~assets ~~ACCOUNT~~measured at fair value on a recurring basis and their respective level in the fair value hierarchy.

March 31, 2015



Table 1:	($ in 000’s)
	Fair value measurements at June 30, 2015
	Total		Level 1		Level 2		Level 3
Assets:
Investment in The Prudential Variable Contract Real Property Partnership	$	79,518	$	—	$	—	$	79,518

Note 10: Fair Value Measurements (continued)



	($ in 000’s)
	Fair value measurements at December 31, 2014
	Total		Level 1		Level 2		Level 3
Assets:
Investment in The Prudential Variable Contract Real Property Partnership	$	79,093	$	—	$	—	$	79,093

Table 2 below provides a reconciliation of the beginning and ending balances for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2015 and 2014. 9

Table 2:	($ in 000’s)
	2015
Beginning balance, January 1, 2015	$	79,093
Net recognized and unrealized gains (losses) included in earnings (or changes in net assets) from Partnership operations		938
Net investment income from Partnership operations		564
Acquisitions, issuances, and contributions		—
Dispositions, settlements, and distributions		(1,800	)
Ending balance, March 31, 2015	$	78,795
Unrealized gains (losses) for the period relating to Level 3 assets still held at the reporting date	$	938
	($ in 000’s)
	2014
Beginning balance, January 1, 2014	$	77,305
Net recognized and unrealized gains (losses) included in earnings (or changes in net assets) from Partnership operations		(207	)
Net investment income from Partnership operations		757
Acquisitions, issuances, and contributions		—
Dispositions, settlements, and distributions		(1,795	)
Ending balance, March 31, 2014	$	76,060
Unrealized gains (losses) for the period relating to Level 3 assets still held at the reporting date	$	(207	)

Table of Contents

~~Note~~NOTES ~~11:~~TO ~~Subsequent~~UNAUDITED ~~Events~~INTERIM FINANCIAL STATEMENTS OF

OnTHE ~~April 2,~~PRUDENTIAL ~~2015,~~VARIABLE ~~the~~CONTRACT ~~Partnership~~REAL ~~acquired~~PROPERTY ~~the Station House Apartments in Maplewood, NJ. For further information, see Note 9 of the Partnership unaudited consolidated financial statements.~~ ACCOUNT

10June 30, 2015

~~Table~~Note of10: ~~Contents~~Fair Value Measurements (continued)

~~[THIS~~Table ~~PAGE~~2 ~~INTENTIONALLY LEFT~~below ~~BLANK]~~provides a reconciliation of the beginning and ending balances for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the six months ended June 30, 2015 and 2014.

11Table 2:



	($ in 000’s)
	2015
Beginning balance, January 1, 2015	$	79,093
Net recognized and unrealized gains (losses) included in earnings (or changes in net assets) from Partnership operations	1,017
Net investment income from Partnership operations	1,208
Acquisitions, issuances, and contributions	—
Dispositions, settlements, and distributions	(1,800		)
Ending balance, June 30, 2015	$	79,518
Unrealized gains (losses) for the period relating to Level 3 assets still held at the reporting date	$	963

THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP



	($ in 000’s)
	2014
Beginning balance, January 1, 2014	$	77,305
Net recognized and unrealized gains (losses) included in earnings (or changes in net assets) from Partnership operations	501
Net investment income from Partnership operations	1,464
Acquisitions, issuances, and contributions	—
Dispositions, settlements, and distributions	(1,795		)
Ending balance, June 30, 2014	$	77,475
Unrealized gains (losses) for the period relating to Level 3 assets still held at the reporting date	$	501

~~CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES~~ 10

	March 31, 2015(Unaudited)		December 31,2014
ASSETS
REAL ESTATE INVESTMENTS - At estimated fair value:
Real estate and improvements (cost: 03/31/2015 — $240,986,882; 12/31/2014 — $240,778,075)	$	238,430,000	$	235,689,701
CASH AND CASH EQUIVALENTS		28,266,050		32,308,210
OTHER ASSETS, NET		3,569,292		2,947,752
Total assets	$	270,265,342	$	270,945,663
LIABILITIES & PARTNERS’ EQUITY
INVESTMENT LEVEL DEBT	$	69,738,932	$	70,006,898
ACCOUNTS PAYABLE AND ACCRUED EXPENSES		2,138,433		1,663,710
DUE TO AFFILIATES		690,905		666,963
OTHER LIABILITIES		1,036,919		934,145
Total liabilities		73,605,189		73,271,716
COMMITMENTS AND CONTINGENCIES
NET ASSETS, REPRESENTING PARTNERS’ EQUITY:
GENERAL PARTNERS’ CONTROLLING INTEREST		186,825,743		188,251,636
NONCONTROLLING INTEREST		9,834,410		9,422,311
Total partners’ equity		196,660,153		197,673,947
Total liabilities and partners’ equity	$	270,265,342	$	270,945,663
NUMBER OF SHARES OUTSTANDING AT END OF PERIOD		4,529,591		4,650,878
SHARE VALUE AT END OF PERIOD	$	41.25	$	40.48

Table of Contents

~~The~~NOTES ~~accompanying~~TO ~~notes~~UNAUDITED ~~are~~INTERIM anFINANCIAL ~~integral~~STATEMENTS ~~part of these consolidated financial statements.~~ OF

12THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY ACCOUNT

~~Table~~June of30, ~~Contents~~2015

~~THE~~Note ~~PRUDENTIAL~~10: ~~VARIABLE~~Fair ~~CONTRACT~~Value ~~REAL~~Measurements ~~PROPERTY PARTNERSHIP~~ (continued)

~~CONSOLIDATED~~Table ~~STATEMENTS~~3 OFbelow ~~OPERATIONS~~provides a reconciliation of the beginning and ending balances for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended June 30, 2015 and 2014.

~~(Unaudited)~~Table 3:

		For the Three Months Ended March 31,
	($ in 000’s)
	2015	~~2015~~		~~2014~~
INVESTMENT INCOME:
Beginning balance, April 1, 2015	$	78,795
Revenue from real estate and improvements		$	5,313,029	$	6,392,689
Net recognized and unrealized gains (losses) included in earnings (or changes in net assets) from Partnership operations	79
Interest income			4,801		5,264
Net investment income from Partnership operations	644
Total investment income			5,317,830		6,397,953
Acquisitions, issuances, and contributions	—
INVESTMENT EXPENSES:
Dispositions, settlements, and distributions	—
Operating			876,448		1,416,688
Ending balance, June 30, 2015	$	79,518
Investment management fee			677,496		632,545
Unrealized gains (losses) for the period relating to Level 3 assets still held at the reporting date	$	25
Real estate taxes			674,066		643,891
Administrative			770,263		1,013,676
Interest expense			830,661		728,102
Total investment expenses			3,828,934		4,434,902
NET INVESTMENT INCOME			1,488,896		1,963,051
RECOGNIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Change in unrealized gain (loss) on real estate investments held			2,531,492		(367,257	)
NET RECOGNIZED AND UNREALIZED GAIN (LOSS)			2,531,492		(367,257	)
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		$	4,020,388	$	1,595,794
Amounts attributable to noncontrolling interest:
Net investment income (loss) attributable to noncontrolling interest			147,994		148,313
Net unrealized gain (loss) attributable to noncontrolling interest			298,287		128,995
Increase (decrease) in net assets resulting from operations attributable to noncontrolling interest		$	446,281	$	277,308
Amounts attributable to general partners’ controlling interest:
Net investment income attributable to general partners’ controlling interest			1,340,902		1,814,738
Net unrealized gain (loss) attributable to general partners’ controlling interest			2,233,205		(496,252	)
Increase (decrease) in net assets resulting from operations attributable to general partners’ controlling interest		$	3,574,107	$	1,318,486

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



	($ in 000’s)
	2014
Beginning balance, April 1, 2014	$	76,060
Net recognized and unrealized gains (losses) included in earnings (or changes in net assets) from Partnership operations	709
Net investment income from Partnership operations	706
Acquisitions, issuances, and contributions	—
Dispositions, settlements, and distributions	—
Ending balance, June 30, 2014	$	77,475
Unrealized gains (losses) for the period relating to Level 3 assets still held at the reporting date	$	709

13 11

Table of Contents

~~THE~~[THIS ~~PRUDENTIAL~~PAGE ~~VARIABLE~~INTENTIONALLY ~~CONTRACT~~LEFT ~~REAL PROPERTY PARTNERSHIP~~ BLANK]

~~CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS~~ 12

~~(Unaudited)~~Table of Contents

	For the Three Months Ended March 31,
	2015									2014
	General Partners’Controlling Interest			NoncontrollingInterest			Total			General Partners’Controlling Interest			NoncontrollingInterest			Total
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS:
Net investment income (loss)	$	1,340,902		$	147,994		$	1,488,896		$	1,814,738		$	148,313		$	1,963,051
Net recognized and unrealized gain (loss)		2,233,205			298,287			2,531,492			(496,252	)		128,995			(367,257	)
Increase (decrease) in net assets resulting from operations		3,574,107			446,281			4,020,388			1,318,486			277,308			1,595,794
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL TRANSACTIONS:
Distributions to General Partners		(5,000,000	)		—			(5,000,000	)		(5,000,000	)		—			(5,000,000	)
Distributions to noncontrolling interest		—			(34,182	)		(34,182	)		—			(42,034	)		(42,034	)
Increase (decrease) in net assets resulting from capital transactions		(5,000,000	)		(34,182	)		(5,034,182	)		(5,000,000	)		(42,034	)		(5,042,034	)
INCREASE (DECREASE) IN NET ASSETS		(1,425,893	)		412,099			(1,013,794	)		(3,681,514	)		235,274			(3,446,240	)
NET ASSETS - Beginning of period		188,251,636			9,422,311			197,673,947			185,407,870			9,263,953			194,671,823
NET ASSETS - End of period	$	186,825,743		$	9,834,410		$	196,660,153		$	181,726,356		$	9,499,227		$	191,225,583

THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

~~The~~CONSOLIDATED ~~accompanying~~STATEMENTS ~~notes~~OF ~~are~~ASSETS anAND ~~integral part of these consolidated financial statements.~~ LIABILITIES



	June 30, 2015(Unaudited)		December 31, 2014
ASSETS
REAL ESTATE INVESTMENTS - At estimated fair value:
Real estate and improvements (cost: 06/30/2015 -- $248,200,497; 12/31/2014 -- $240,778,075)	$	247,580,522	$	235,689,701
CASH AND CASH EQUIVALENTS	31,469,671		32,308,210
OTHER ASSETS, NET	3,204,005		2,947,752
Total assets	$	282,254,198	$	270,945,663
LIABILITIES & PARTNERS’ EQUITY
INVESTMENT LEVEL DEBT	$	79,647,123	$	70,006,898
ACCOUNTS PAYABLE AND ACCRUED EXPENSES	2,450,362		1,663,710
DUE TO AFFILIATES	714,896		666,963
OTHER LIABILITIES	628,274		934,145
Total liabilities	83,440,655		73,271,716
COMMITMENTS AND CONTINGENCIES
NET ASSETS, REPRESENTING PARTNERS’ EQUITY:
GENERAL PARTNERS’ CONTROLLING INTEREST	188,539,371		188,251,636
NONCONTROLLING INTEREST	10,274,172		9,422,311
Total partners' equity	198,813,543		197,673,947
Total liabilities and partners’ equity	$	282,254,198	$	270,945,663
NUMBER OF SHARES OUTSTANDING AT END OF PERIOD	4,529,591		4,650,878
GENERAL PARTNERS' SHARE VALUE AT END OF PERIOD	$	41.62	$	40.48

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

~~THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP~~ 13

~~CONSOLIDATED~~Table ~~STATEMENTS~~of ~~OF CASH FLOWS~~ Contents

~~(Unaudited)~~THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

	For the Three Months Ended March 31,
	2015			2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Increase (decrease) in net assets resulting from operations	$	4,020,388		$	1,595,794
Adjustments to reconcile increase (decrease) in net assets to net cash provided by (used in) operating activities
Net recognized and unrealized loss (gain)		(2,531,492	)		367,257
Amortization of deferred financing costs		13,580			7,041
Bad debt expense		3,055			22,858
(Increase) decrease in:
Other assets		(638,175	)		616,045
Increase (decrease) in:
Accounts payable and accrued expenses		487,918			(5,657	)
Due to affiliates		23,942			(17,380	)
Other liabilities		102,774			(84,394	)
Net cash flows provided by (used in) operating activities		1,481,990			2,501,564
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of real estate and improvements		—			(8,295,624	)
Additions to real estate and improvements		(222,002	)		(665,974	)
Net cash flows provided by (used in) investing activities		(222,002	)		(8,961,598	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on investment level debt		(267,966	)		(251,595	)
Distributions to general partners		(5,000,000	)		(5,000,000	)
Distributions to noncontrolling interest		(34,182	)		(42,034	)
Net cash flows provided by (used in) financing activities		(5,302,148	)		(5,293,629	)
NET CHANGE IN CASH AND CASH EQUIVALENTS		(4,042,160	)		(11,753,663	)
CASH AND CASH EQUIVALENTS - Beginning of period		32,308,210			43,962,922
CASH AND CASH EQUIVALENTS - End of period	$	28,266,050		$	32,209,259

CONSOLIDATED STATEMENTS OF OPERATIONS

~~The accompanying notes are an integral part of these consolidated financial statements.~~ (Unaudited)



	For the Six Months Ended June 30,					For the Three Months Ended June 30,
	2015			2014		2015			2014
INVESTMENT INCOME:
Revenue from real estate and improvements	$	10,915,095		$	12,652,718	$	5,602,066		$	6,260,029
Interest income	7,099			9,478		2,298			4,214
Total investment income	10,922,194			12,662,196		5,604,364			6,264,243
INVESTMENT EXPENSES:
Operating	1,759,245			2,725,805		882,797			1,309,117
Investment management fee	1,378,984			1,261,889		701,488			629,344
Real estate taxes	1,315,210			1,372,522		641,144			728,631
Administrative	1,591,288			2,024,587		821,025			1,010,911
Interest expense	1,695,680			1,454,936		865,019			726,834
Total investment expenses	7,740,407			8,839,739		3,911,473			4,404,837
NET INVESTMENT INCOME (LOSS)	3,181,787			3,822,457		1,692,891			1,859,406
RECOGNIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net proceeds from real estate investments sold	12,668,032			—		12,668,032			—
Less: Cost of real estate investments sold	14,114,940			—		14,114,940			—
Gain (loss) realized from real estate investments sold	(1,446,908		)	—		(1,446,908		)	—
Less: Reversal of prior periods’ unrealized gain (loss) on real estate investments sold	(1,572,787		)	—		(1,572,787		)	—
Net gain (loss) recognized on real estate investments sold	125,879			—		125,879			—
Change in unrealized gain (loss) on real estate investments	2,895,611			1,484,250		364,119			1,851,507
NET RECOGNIZED AND UNREALIZED GAIN (LOSS)	3,021,490			1,484,250		489,998			1,851,507
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	6,203,277		$	5,306,707	$	2,182,889		$	3,710,913
Amounts attributable to noncontrolling interest:
Net investment income (loss) attributable to noncontrolling interest	$	312,386		$	320,706	$	164,392		$	172,393
Net recognized and unrealized gain (loss) attributable to noncontrolling interest	603,156			287,723		304,869			158,728
Increase (decrease) in net assets resulting from operations attributable to noncontrolling interest	$	915,542		$	608,429	$	469,261		$	331,121
Amounts attributable to general partners’ controlling interest:
Net investment income (loss) attributable to general partners' controlling interest	$	2,869,401		$	3,501,751	$	1,528,499		$	1,687,013
Net recognized gain (loss) attributable to general partners' controlling interest	125,879			—		125,879			—
Net unrealized gain (loss) attributable to general partners' controlling interest	2,292,455			1,196,527		59,250			1,692,779
Increase (decrease) in net assets resulting from operations attributable to general partners' controlling interest	$	5,287,735		$	4,698,278	$	1,713,628		$	3,379,792

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

~~THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP~~ 14

~~CONSOLIDATED~~Table ~~SCHEDULES~~of ~~OF REAL ESTATE INVESTMENTS~~ Contents

					2015 Total RentableSquare Feet Unless Otherwise			March 31, 2015(Unaudited)				December 31, 2014
Property Name	March 31, 2015Ownership		City, State		Indicated(Unaudited)			Cost		Estimated FairValue		Cost		Estimated FairValue
OFFICES
750 Warrenville		WO		Lisle, IL		92,209		$	27,969,059	$	6,000,000	$	27,964,168	$	6,200,000
Summit @ Cornell Oaks		WO		Beaverton , OR		72,109			14,072,787		12,600,000		14,072,787		12,500,000
				Offices % as of 3/31/15		10	%		42,041,846		18,600,000		42,036,955		18,700,000
APARTMENTS
700 Broadway		CJV		Seattle, WA		59 Units			22,911,923		26,100,000		22,897,489		26,100,000
Broadstone Crossing		WO		Austin, TX		225 Units			23,082,989		27,300,000		23,070,315		27,426,986
Vantage Park		CJV		Seattle, WA		91 Units			21,668,660		26,900,000		21,640,623		25,900,000
The Reserve At Waterford Lakes		WO		Charlotte, NC		140 Units			14,711,856		15,200,000		14,676,752		15,000,000
				Apartments %as of 3/31/15		51	%		82,375,428		95,500,000		82,285,179		94,426,986
RETAIL
Hampton Towne Center		WO		Hampton,VA		174,540			18,766,448		21,900,000		18,743,265		20,100,000
White Marlin Mall		CJV		Ocean City,MD		197,098			25,664,406		32,600,000		25,610,596		32,600,000
Westminster Crossing East, LLC		CJV		Westminster, MD		89,890			15,277,441		18,900,000		15,220,559		18,900,000
Village Walk		WO		Roswell, GA		88,504			20,749,324		19,400,000		20,749,324		19,300,000
Harnett Crossing		WO		Dunn, NC		189,143			8,449,001		3,430,000		8,469,209		3,980,000
Peachtree Corners Market		WO		Norcross, GA		42,185			19,282,716		19,400,000		19,282,716		19,282,715
Publix at Eagle Landing		WO		North FortMyers, FL		57,840			8,380,272		8,700,000		8,380,272		8,400,000
				Retail % as of 3/31/15		67	%		116,569,608		124,330,000		116,455,941		122,562,715
Total Real Estate Investments at Estimated Fair Values as a Percentage of General Partners’ Controlling Interest as of 3/31/15						128	%	$	240,986,882	$	238,430,000	$	240,778,075	$	235,689,701

THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

WOCONSOLIDATED -STATEMENTS ~~Wholly~~OF ~~Owned~~CHANGES ~~Investment~~IN NET ASSETS

~~CJV - Consolidated Joint Venture~~ (Unaudited)

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



	For the Six Months Ended June 30,
	2015									2014
	General Partners’ Controlling Interest			Noncontrolling Interest			Total			General Partners’ Controlling Interest			Noncontrolling Interest			Total
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS:
Net investment income (loss)	$	2,869,401		$	312,386		$	3,181,787		$	3,501,751		$	320,706		$	3,822,457
Net recognized and unrealized gain (loss)	2,418,334			603,156			3,021,490			1,196,527			287,723			1,484,250
Increase (decrease) in net assets resulting from operations	5,287,735			915,542			6,203,277			4,698,278			608,429			5,306,707
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL TRANSACTIONS:
Distributions to general partners	(5,000,000		)	—			(5,000,000		)	(5,000,000		)	—			(5,000,000		)
Distributions to noncontrolling interest	—			(63,681		)	(63,681		)	—			(66,592		)	(66,592		)
Increase (decrease) in net assets resulting from capital transactions	(5,000,000		)	(63,681		)	(5,063,681		)	(5,000,000		)	(66,592		)	(5,066,592		)
INCREASE (DECREASE) IN NET ASSETS	287,735			851,861			1,139,596			(301,722		)	541,837			240,115
NET ASSETS - Beginning of period	188,251,636			9,422,311			197,673,947			185,407,870			9,263,953			194,671,823
NET ASSETS - End of period	$	188,539,371		$	10,274,172		$	198,813,543		$	185,106,148		$	9,805,790		$	194,911,938

16The accompanying notes are an integral part of these consolidated financial statements.

~~Table of Contents~~15

~~THE~~Table ~~PRUDENTIAL~~of ~~VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP~~ Contents

~~CONSOLIDATED~~THE ~~SCHEDULES~~PRUDENTIAL OFVARIABLE CONTRACT REAL ~~ESTATE~~PROPERTY ~~INVESTMENTS~~ PARTNERSHIP

	March 31, 2015(Unaudited)								December 31, 2014
	FaceAmount		Maturity Date	Cost		EstimatedFair Value			Cost		EstimatedFair Value
CASH AND CASH EQUIVALENTS - Percentage of General Partners’ Controlling Interest							15.1	%				17.2	%
Investments in PrudentialInvestment Liquidity Pool:
Federal Home Loan Bank,0 coupon bond	$	20,500,000	April, 2015	$	20,500,000	$	20,500,000		$	14,700,000	$	14,700,000
Federal Home Loan Bank,0 coupon bond		3,140,000	April, 2015		5,000,000		5,000,000			5,000,000		5,000,000
Federal Home Loan Bank,0 coupon bond					—		—			11,000,000		11,000,000
Total Cash Equivalents					25,500,000		25,500,000			30,700,000		30,700,000
Cash					2,766,050		2,766,050			1,608,210		1,608,210
Total Cash and Cash Equivalents				$	28,266,050	$	28,266,050		$	32,308,210	$	32,308,210

CONSOLIDATED STATEMENTS OF CASH FLOWS

~~The accompanying notes are an integral part of these consolidated financial statements.~~ (Unaudited)



	For the Six Months Ended June 30,
	2015			2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Increase (decrease) in net assets resulting from operations	$	6,203,277		$	5,306,707
Adjustments to reconcile increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities
Net recognized and unrealized loss (gain)	(3,021,490		)	(1,484,250		)
Amortization of deferred financing costs	33,374			14,082
Bad debt expense	1,070			38,732
(Increase) decrease in:
Other assets	(290,698		)	880,215
Increase (decrease) in:
Accounts payable and accrued expenses	503,880			90,930
Due to affiliates	47,933			(20,579		)
Other liabilities	(305,871		)	(343,922		)
Net cash flows provided by (used in) operating activities	3,171,475			4,481,915
CASH FLOWS FROM INVESTING ACTIVITIES:
Net proceeds from real estate investments sold	12,668,032			—
Acquisition of real estate and improvements	(20,490,522		)	(8,295,624		)
Additions to real estate and improvements	(764,067		)	(2,099,355		)
Net cash flows provided by (used in) investing activities	(8,586,557		)	(10,394,979		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on investment level debt	(534,776		)	(501,677		)
Proceeds from investment level debt	10,175,000			—
Distributions to general partners	(5,000,000		)	(5,000,000		)
Distributions to noncontrolling interest	(63,681		)	(66,592		)
Net cash flows provided by (used in) financing activities	4,576,543			(5,568,269		)
NET CHANGE IN CASH AND CASH EQUIVALENTS	(838,539		)	(11,481,333		)
CASH AND CASH EQUIVALENTS - Beginning of period	32,308,210			43,962,922
CASH AND CASH EQUIVALENTS - End of period	$	31,469,671		$	32,481,589

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

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF~~ 16

~~THE~~Table ~~PRUDENTIAL~~of ~~VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP~~ Contents

~~March~~THE ~~31,~~PRUDENTIAL ~~2015~~VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

~~(Unaudited)~~CONSOLIDATED SCHEDULES OF REAL ESTATE INVESTMENTS

Note 1: Summary of Significant Accounting Policies



			2015 Total Rentable Square Feet Unless Otherwise Indicated (Unaudited)	June 30, 2015 (Unaudited)				December 31, 2014
Property Name	June 30, 2015 Ownership	City, State		Cost		Estimated Fair Value		Cost		Estimated Fair Value
OFFICES
750 Warrenville Road	WO	Lisle, IL	92,209	$	28,537,542	$	6,000,000	$	27,964,168	$	6,200,000
Summit @ Cornell Oaks	WO	Beaverton, OR	—	—		—		14,072,787		12,500,000
		Offices % as of 6/30/15	3%	28,537,542		6,000,000		42,036,955		18,700,000
APARTMENTS
700 Broadway	CJV	Seattle, WA	59 Units	22,934,425		26,200,000		22,897,489		26,100,000
Broadstone Crossing	WO	Austin, TX	225 Units	23,109,693		27,900,000		23,070,315		27,426,986
Vantage Park	CJV	Seattle, WA	91 Units	21,752,135		27,900,000		21,640,623		25,900,000
Station House Apartments of Maplewood	WO	Maplewood, NJ	50 Units	20,490,522		20,490,522		—		—
The Reserve At Waterford Lakes	WO	Charlotte, NC	140 Units	14,753,510		15,200,000		14,676,752		15,000,000
		Apartments % as of 6/30/15	62%	103,040,285		117,690,522		82,285,179		94,426,986
RETAIL
Hampton Towne Center	WO	Hampton, VA	174,540	18,774,787		21,200,000		18,743,265		20,100,000
White Marlin Mall	CJV	Ocean City, MD	197,098	25,680,085		32,600,000		25,610,596		32,600,000
Westminster Crossing East, LLC	CJV	Westminster, MD	89,890	15,277,959		18,900,000		15,220,559		18,900,000
Village Walk	WO	Roswell, GA	88,504	20,749,324		19,500,000		20,749,324		19,300,000
Harnett Crossing	WO	Dunn, NC	189,143	8,472,227		3,490,000		8,469,209		3,980,000
Peachtree Corners Market	WO	Norcross, GA	42,185	19,282,716		19,400,000		19,282,716		19,282,715
Publix at Eagle Landing	WO	North Fort Myers, FL	57,840	8,385,572		8,800,000		8,380,272		8,400,000
		Retail % as of 6/30/15	66%	116,622,670		123,890,000		116,455,941		122,562,715

Total Real Estate Investments at Estimated Fair Values as a Percentage of General Partners’ Controlling Interest as of June 30, 2015			131%	$248,200,497		$	247,580,522	$	240,778,075	$	235,689,701

A.WO ~~Basis of Presentation~~ - ~~The~~Wholly ~~accompanying~~Owned consolidated financial statements of The Prudential Variable Contract Real Property Partnership (the “Partnership”) included herein have been prepared in accordance with accounting principles generally accepted in the United States of America that are applicable to investment companies. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement have been included. Operating results for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ended December 31, 2015. For further information, refer to the audited consolidated financial statements and notes of the Partnership for the year ended December 31, 2014. The Partnership has evaluated subsequent events through May 14, 2015, the date these consolidated financial statements were available to be issued.Investment

B.CJV ~~New Accounting Pronouncement – In February 2015, the Financial Accounting Standard Board (“FASB”) issued updated guidance in Accounting Standards Update (“ASU”) 2015~~-02 ~~Consolidations~~Consolidated ~~(Topic~~Joint 810) that changes the rules regarding consolidation. The pronouncement eliminates specialized guidance for limited partnerships and similar legal entities, and removes the indefinite deferral for certain investment funds. The new guidance is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015, with early adoption permitted. The Partnership is currently assessing the impact of the guidance on the Partnership’s consolidated financial statements.Venture

~~Note~~The 2:accompanying ~~Disclosure of~~notes ~~Supplemental~~are ~~Cash~~an ~~Flow~~integral ~~Information~~part ~~and~~of ~~Non-Cash~~these ~~Investing~~consolidated ~~and~~financial ~~Financing Activity~~ statements.

~~Cash paid for interest during the three months ended March 31, 2015 and March 31, 2014 was $822,043 and $721,061, respectively.~~ 17

~~Note~~Table 3:of ~~Fair Value Measurements~~ Contents

~~Valuation~~THE ~~Methods:~~PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

~~Real estate~~CONSOLIDATED ~~investments~~SCHEDULES ~~are~~OF ~~carried~~REAL atESTATE fair value. Properties owned are initially recorded at the purchase price plus closing costs. Development costs and major renovations are capitalized as a component of cost, and routine maintenance and repairs are charged to expense as incurred. Real estate costs include the cost of acquired property, including all the tangible and intangible assets. Tangible assets include the value of all land, building and tenant improvements at the time of acquisition. Intangible assets include the value of any above or below market leases, in-place leases, and tenant relationships at the time of acquisition. INVESTMENTS

In general, fair value estimates are based upon property appraisal reports prepared by independent real estate appraisers (members of the Appraisal Institute or an equivalent organization) within a reasonable amount of time following acquisition of the real estate and no less frequently than annually thereafter. The Chief Real Estate Appraiser of Prudential Investment Management, Inc. (“PIM”), which is an indirectly owned subsidiary of Prudential Financial, Inc. (“Prudential Financial”), is responsible to assure that the valuation process provides independent and reasonable property fair value estimates. An unaffiliated third party has been appointed by PIM to assist the Chief Real Estate Appraiser in maintaining and monitoring the independence and the accuracy of the appraisal process. The fair value of real estate investments does not reflect the transaction sale costs, which may be incurred upon disposition of the real estate investments.



	June 30, 2015 (Unaudited)								December 31, 2014
	Face Amount		Maturity Date	Cost		Estimated Fair Value			Cost		Estimated Fair Value
CASH AND CASH EQUIVALENTS - Percentage of General Partners' Controlling Interest						16.7		%			17.2		%
Investments in Prudential Investment Liquidity Pool:
Federal Home Loan Bank, 0 coupon bond	$	28,000,000	July, 2015	$	28,000,000	$	28,000,000		$	14,700,000	$	14,700,000
Federal Home Loan Bank, 0 coupon bond				—		—			5,000,000		5,000,000
Federal Home Loan Bank, 0 coupon bond				—		—			11,000,000		11,000,000
Total Cash Equivalents				28,000,000		28,000,000			30,700,000		30,700,000
Cash				3,469,671		3,469,671			1,608,210		1,608,210
Total Cash and Cash Equivalents				$	31,469,671	$	31,469,671		$	32,308,210	$	32,308,210

The ~~purpose~~accompanying ofnotes an appraisal is to estimate the fair value of real estate as of a specific date. In accordance with the Financial Accounting Standards Board (“FASB”) authoritative guidance on fair value measurements and disclosures, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The estimate of fair value is based on the conventional approaches to value, all of which require the exercise of subjective judgment. The three approaches are: (1) current cost of reproducing the real estate less deterioration and functional and economic obsolescence; (2) discounting a series of income streams and reversion at a specific yield or by directly capitalizing a single three month period income estimate by an ~~appropriate~~integral ~~factor;~~part ~~and (3) value indicated by recent sales~~ of comparable real estate in the market. Key inputs and assumptions include rental income and expense amounts, related rental income and expense growth rates, discount rates and capitalization rates. In the reconciliation of these ~~three~~consolidated ~~approaches,~~financial ~~the independent appraiser uses one or a combination of them, to come up with the approximate value for the type of real estate in the market~~statements. ~~The real estate investments consist of real estate and improvements and are therefore classified as Level 3.~~

Cash equivalents include short-term investments with maturities of three months or less when purchased. Short-term investments are generally valued using unadjusted quoted prices in active markets that are accessible for identical assets and are primarily classified as Level 1. See below for a description of the levels of fair value hierarchy. 18

18Table of Contents

~~Table~~NOTES ofTO ~~Contents~~THE CONSOLIDATED FINANCIAL STATEMENTS OF

~~NOTES TO~~ THE ~~CONSOLIDATED~~PRUDENTIAL ~~FINANCIAL~~VARIABLE ~~STATEMENTS~~CONTRACT OFREAL PROPERTY PARTNERSHIP

~~THE~~June ~~PRUDENTIAL~~30, ~~VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP~~ 2015

~~March 31, 2015~~ (Unaudited)

~~(Unaudited)~~Note 1: Summary of Significant Accounting Policies

~~Note~~A. 3:Basis ~~Fair~~of ~~Value~~Presentation ~~Measurements~~- The accompanying consolidated financial statements of The Prudential Variable Contract Real Property Partnership (~~continued~~the “Partnership”) included herein have been prepared in accordance with accounting principles generally accepted in the United States of America that are applicable to investment companies. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement have been made. Operating results for the three and six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ended December 31, 2015. For further information, refer to the audited consolidated financial statements and notes of the Partnership for the year ended December 31, 2014. The Partnership has evaluated subsequent events through August 13, 2015, the date these consolidated financial statements were available to be issued. The partners in the Partnership are The Prudential Insurance Company of America, Pruco Life Insurance Company and Pruco Life Insurance Company of New Jersey (collectively the “General Partners”).

~~Fair~~B. ~~Value~~New ~~Measurements:~~Accounting Pronouncement - In February 2015, the Financial Accounting Standards Board (“FASB”) issued updated guidance in Accounting Standards Update 2015-02 Consolidations (Topic 810) that changes the rules regarding consolidation. The pronouncement eliminates specialized guidance for limited partnerships and similar legal entities, and removes the indefinite deferral for certain investment funds. The new guidance is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015, with early adoption permitted. The Partnership is currently assessing the impact of the guidance on the Partnership’s consolidated financial statements.

~~FASB~~Note ~~authoritative~~2: ~~guidance~~Disclosure onof ~~fair~~Supplemental ~~value~~Cash ~~measurements~~Flow ~~and~~Information ~~disclosures establishes a fair value measurement framework, provides a single definition of fair value~~ and ~~requires expanded disclosure summarizing fair value measurements. This guidance provides a three~~Non-~~level~~Cash ~~hierarchy~~Investing ~~based~~and onFinancing the inputs used in the valuation process. The levels in the fair value hierarchy within which the fair value measurements falls are determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows: Activity

~~Level~~Cash 1paid –for ~~Fair~~interest ~~value~~during ~~is based on unadjusted quoted prices in active markets that are accessible to~~ the ~~entity~~six ~~for~~months ~~identical~~ended ~~assets~~June ~~or liabilities.~~30, ~~These~~2015 ~~generally~~and ~~provide~~June ~~the~~30, ~~most~~2014 ~~reliable~~was ~~evidence~~$1,662,306 and ~~should~~$1,440,854, ~~be used to measure fair value whenever available~~respectively.

~~Level~~Note ~~2 –~~3: Fair ~~value~~Value is based on inputs, other than Level 1 inputs, that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability through corroboration with observable market data. Measurements

~~Level~~Valuation 3 – Fair value is based on significant unobservable inputs for the asset or liability. These inputs reflect the entity’s own assumptions about how market participants would price the asset or liability. Methods:

~~During~~Real estate investments are carried at fair value. Properties owned are initially recorded at the ~~three~~purchase ~~months~~price ~~ended March 31,~~plus ~~2015~~closing costs. Development costs and ~~2014~~major renovations are capitalized as a component of cost, ~~there~~and ~~were~~routine nomaintenance ~~transfers~~and ~~between~~repairs ~~Level~~are 1charged to expense as incurred. Real estate costs include the cost of acquired property, ~~Level~~including 2all the tangible and ~~Level~~intangible 3assets. Tangible assets include the value of all land, building and tenant improvements at the time of acquisition. Intangible assets include the value of any above or below market leases, in-place leases, and tenant relationships at the time of acquisition.

19In general, fair value estimates are based upon property appraisal reports prepared by independent real estate appraisers (members of the Appraisal Institute or an equivalent organization) within a reasonable amount of time following acquisition of the real estate and no less frequently than annually thereafter. The Chief Real Estate Appraiser of Prudential Investment Management, Inc. (“PIM”), which is an indirectly owned subsidiary of Prudential Financial, Inc. (“Prudential Financial”), is responsible to assure that the valuation process provides independent and reasonable property fair value estimates. An unaffiliated third party has been appointed by PIM to assist the Chief Real Estate Appraiser in maintaining and monitoring the independence and the accuracy of the appraisal process. The fair value of real estate investments does not reflect the transaction sale costs, which may be incurred upon disposition of the real estate investments.

~~Table~~The purpose of ~~Contents~~an appraisal is to estimate the fair value of real estate as of a specific date. In accordance with the FASB authoritative guidance on fair value measurements and disclosures, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The estimate of fair value is based on the conventional approaches to value, all of which require the exercise of subjective judgment. The three approaches are: (1) current cost of reproducing the real estate less deterioration and functional and economic obsolescence; (2) discounting a series of income streams and reversion at a specific yield or by directly capitalizing a single year period income estimate by an appropriate factor; and (3) value indicated by recent sales of comparable real estate in the market. Key inputs and assumptions include rental income and expense amounts, related rental income and expense growth rates, discount rates and capitalization rates. In the reconciliation of these three approaches, the independent appraiser uses one or a combination of them, to come up with the approximate value for the type of real estate in the market. The real estate investments consist of real estate and improvements and are therefore classified as Level 3.

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF~~ 19

~~THE~~Table ~~PRUDENTIAL~~of ~~VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP~~ Contents

~~March~~NOTES ~~31,~~TO ~~2015~~THE CONSOLIDATED FINANCIAL STATEMENTS OF

~~(Unaudited)~~THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

~~Note~~June 3:30, ~~Fair Value Measurements (continued)~~ 2015

~~Table 1 below summarizes the assets measured at fair value on a recurring basis and their respective level in the fair value hierarchy.~~ (Unaudited)

~~Table~~Note 13: Fair Value Measurements (continued)

			(in 000’s)
			Fair value measurements at March 31, 2015
Assets:	Cost at3/31/15		Amountsmeasured atfair value3/31/2015		Quoted prices inactive marketsfor identicalassets (Level 1)		Significantother observableinputs (Level 2)		Significantunobservableinputs (Level 3)
Real estate and improvements	$	240,987	$	238,430	$	—	$	—	$	238,430
Cash equivalents		25,500		25,500		25,500		—		—
Total	$	266,487	$	263,930	$	25,500	$	—	$	238,430
			(in 000’s)
			Fair value measurements at December 31, 2014
Assets:	Cost at12/31/14		Amountsmeasured atfair value12/31/2014		Quoted prices inactive marketsfor identicalassets (Level 1)		Significantother observableinputs (Level 2)		Significantunobservableinputs (Level 3)
Real estate and improvements	$	240,778	$	235,690	$	—	$	—	$	235,690
Cash equivalents		30,700		30,700		30,700		—		—
Total	$	271,478	$	266,390	$	30,700	$	—	$	235,690

20Fair Value Measurements:

~~Table~~FASB authoritative guidance on fair value measurements and disclosures establishes a fair value measurement framework, provides a single definition of ~~Contents~~fair value and requires expanded disclosure summarizing fair value measurements. This guidance provides a three-level hierarchy based on the inputs used in the valuation process. The levels in the fair value hierarchy within which the fair value measurements fall are determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows:

~~NOTES~~Level TO1 ~~THE~~- ~~CONSOLIDATED~~Fair ~~FINANCIAL~~value ~~STATEMENTS~~is OFbased on unadjusted quoted prices in active markets that are accessible to the entity for identical assets or liabilities. These generally provide the most reliable evidence and should be used to measure fair value whenever available.

~~THE~~Level ~~PRUDENTIAL~~2 ~~VARIABLE~~- ~~CONTRACT~~Fair ~~REAL~~value ~~PROPERTY~~is ~~PARTNERSHIP~~based on inputs, other than Level 1 inputs, that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability through corroboration with observable market data.

~~March~~Level ~~31,~~3 ~~2015~~- Fair value is based on significant unobservable inputs for the asset or liability. These inputs reflect the entity’s own assumptions about how market participants would price the asset or liability.

~~(Unaudited)~~During the six months ended June 30, 2015 and 2014, there were no transfers between Level 1, Level 2 and Level 3.

~~Note 3: Fair Value Measurements (continued)~~ 20

Table ~~2 below provides a reconciliation~~ of the beginning and ending balances for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three month periods ended March 31, 2015 and March 31, 2014. Contents

Table 2
	(in 000’s)
	Real estateandimprovements
Beginning balance, January 1, 2015	$	235,690
Net recognized and unrealized gains (losses) included in earnings (or changes in net assets)		2,531
Acquisitions, issuances and contributions		209
Ending balance, March 31, 2015	$	238,430
Unrealized gains (losses) for the period relating to level 3 assets still held at the reporting date	$	2,531
	(in 000’s)
	Real estateandimprovements
Beginning balance, January 1, 2014	$	210,100
Net recognized and unrealized gains (losses) included in earnings (or changes in net assets)		(367	)
Acquisitions, issuances and contributions		8,813
Ending balance, March 31, 2014	$	218,546
Unrealized gains (losses) for the period relating to level 3 assets still held at the reporting date	$	(367	)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF

21THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

~~Table~~June of30, ~~Contents~~2015

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF~~ (Unaudited)

~~THE~~Note ~~PRUDENTIAL~~3: ~~VARIABLE~~Fair ~~CONTRACT~~Value ~~REAL~~Measurements ~~PROPERTY PARTNERSHIP~~ (continued)

~~March~~Table ~~31,~~1 ~~2015~~below summarizes the assets measured at fair value on a recurring basis and their respective levels in the fair value hierarchy.

~~(Unaudited)~~Table 1

Note 3: Fair Value Measurements (continued)



			(in 000’s)
			Fair value measurements at June 30, 2015 using
Assets:	Cost at 06/30/2015		Amounts measured at fair value 06/30/2015		Quoted prices in active markets for identical assets (level 1)		Significant other observable inputs (level 2)		Significant other observable inputs (level 3)
Real estate and improvements	$	248,200	$	247,581	$	—	$	—	$	247,581
Cash equivalents	28,000		28,000		28,000		—		—
Total	$	276,200	$	275,581	$	28,000	$	—	$	247,581

Quantitative Information Regarding Level 3 Assets:



			(in 000’s)
			Fair value measurements at December 31, 2014 using
Assets:	Cost at 12/31/2014		Amounts measured at fair value 12/31/2014		Quoted prices in active markets for identical assets (level 1)		Significant other observable inputs (level 2)		Significant other observable inputs (level 3)
Real estate and improvements	$	240,778	$	235,690	$	—	$	—	$	235,690
Cash equivalents	30,700		30,700		30,700		—		—
Total	$	271,478	$	266,390	$	30,700	$	—	$	235,690

The table below represents quantitative information about the significant unobservable inputs used in the fair value measurement of Level 3 assets. Significant changes in any of those inputs in isolation would result in a significant change in fair value measurement. 21

	As of March 31, 2015
Category	Fair Value(in 000’s)		Number ofproperties in thisproperty type	Valuation Techniques	Unobservable Input		Range (Weighted Average)
Real estate and improvements:
Apartment	$	95,500	4	Discounted cash flow		Exit capitalization rate	5.00% - 6.25% (5.48%)
						Discount rate	6.50% - 7.75% (7.05%)
Office		18,600	2	Discounted cash flow		Exit capitalization rate	7.50% - 8.00% (7.66%)
						Discount rate	8.25% - 9.00% (8.49%)
Retail		124,330	7	Discounted cash flow		Exit capitalization rate	6.25% - 10.00% (7.22%)
						Discount rate	6.50% - 11.00% (7.61%)
	$	238,430

Table of Contents

22NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF

~~Table~~THE ofPRUDENTIAL ~~Contents~~VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

~~NOTES~~June TO30, ~~THE CONSOLIDATED FINANCIAL STATEMENTS OF~~ 2015

~~THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP~~ (Unaudited)

~~March~~Note ~~31,~~3: ~~2015~~Fair Value Measurements (continued)

Table 2 below provides a reconciliation of the beginning and ending balances for all assets measured at fair value on a recurring basis using significant unobservable inputs (~~Unaudited~~Level 3) for the three and six months ended June 30, 2015 and June 30, 2014.

~~Note~~Table ~~3: Fair Value Measurements (continued)~~ 2

~~Fair~~(in ~~Value of Financial Instruments Carried at Cost:~~ 000’s)

AsFair ~~of March 31, 2015 and December 31, 2014, the Partnership’s mortgages on wholly owned properties and consolidated partnerships have an estimated fair~~ value ofmeasurements approximately $70.5 million and $70.7 million, respectively, and a carrying value (amortized cost) of $69.7 million and $70.0 million, respectively. The estimated fair value is based on the amount at which the Partnership would pay to transfer the debt at the reporting date taking into consideration the effect of nonperformance risk, including the Partnership’s own credit risk. The fair value of debt is determined using ~~the~~significant discounted cash flow method, which applies certain key assumptions including the contractual terms of the agreement, market interest rates, interest spreads, credit risk, liquidity and other factors. Different assumptions or changes in future market conditions could significantly affect the estimated fair value. The input values used in determining the fair value on investment level debt are unobservable, ~~therefore would be considered as Level 3 under the fair value hierarchy.~~ inputs

~~Note~~for 4:the ~~Risk~~six months ended June 30, 2015

A.(Level ~~Valuation Risk~~3)

The estimated fair value of real estate and real estate related assets is generally determined through an appraisal process. These estimated fair values may vary significantly from the prices at which the real estate investments would sell, since market prices of real estate investments can only be determined by negotiation between a willing buyer and seller. These differences could be material to the financial statements. Although the estimated fair values represent subjective estimates, management believes that these estimated fair values are reasonable approximations of market prices and the aggregate estimated value of investments in real estate and improvements are fairly presented as of March 31, 2015 and December 31, 2014.



	Real estate and improvements
Beginning balance, January 1, 2015	$	235,690
Net recognized and unrealized gains (losses) included in earnings (or changes in net assets)	3,021
Acquisitions, issuances and contributions	21,538
Dispositions, settlements and distributions	(12,668		)
Ending balance, June 30, 2015	$	247,581
Unrealized gains (losses) for the period relating to level 3 assets still held at the reporting date	$	2,896

B.(in ~~Financing, Covenant, and Repayment Risks~~000’s)

InFair ~~the~~value ~~normal~~measurements ~~course~~using ofsignificant ~~business,~~unobservable the Partnership enters into loan agreements with certain lenders to finance its real estate investment transactions. Unfavorable economic conditions could increase related borrowing costs, limit access to the capital markets or result in a decision by lenders not to extend credit to the Partnership. There is no guarantee that the Partnership’s borrowing arrangements or ability to obtain leverage will continue to be available, or if available, will be available on terms and conditions acceptable to the Partnership. Further, these loan agreements contain, among other conditions, events of default and various covenants and representations. In the normal course of business, the Partnership may be in the process of renegotiating terms for loans outstanding that have passed their maturity dates. At March 31, 2015, the Partnership had no outstanding matured loans. inputs

Afor ~~decline in market value of~~ the ~~Partnership’s~~six ~~assets~~months ~~may~~ended ~~also~~June 30, have particular adverse consequences in instances where the Partnership borrowed money based on the fair value of specific assets. A decrease in market value of these assets may result in the lender requiring the Partnership to post additional collateral or otherwise repay these loans. 2014

In(Level the event the Partnership’s current portfolio and investment obligations are not refinanced or extended when they become due, management anticipates that the repayment of these obligations will be provided by operating cash flow, new debt refinancing, and real estate investment sales. 3)

Note 5: Commitments and Contingencies



	Real estate and improvements
Beginning balance, January 1, 2014	$	210,100
Net recognized and unrealized gains (losses) included in earnings (or changes in net assets)	1,484
Acquisitions, issuances and contributions	10,277
Dispositions, settlements and distributions	—
Ending balance, June 30, 2014	$	221,861
Unrealized gains (losses) for the period relating to level 3 assets still held at the reporting date	$	1,484

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 Partnership’s management, the outcome of such matters will not have a significant effect on the financial position of the Partnership. 22

~~Note~~Table 6:of ~~Related Party Transactions~~ Contents

~~Pursuant~~NOTES toTO anTHE ~~investment~~CONSOLIDATED ~~management~~FINANCIAL ~~agreement,~~STATEMENTS PIM charges the Partnership a daily investment management fee at an annual rate of 1.25% of the average daily gross asset valuation of the Partnership. For the three month periods ended March 31, 2015 and March 31, 2014, management fees incurred by the Partnership were $677,496 and $632,545, respectively. The Partnership also reimburses PIM for certain administrative services rendered by PIM. The amounts incurred for the three months ended March 31, 2015 and March 31, 2014 were $13,407 and $0, respectively, and are classified as administrative expenses in the Consolidated Statements of Operations. OF

23THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

~~Table~~June of30, ~~Contents~~2015

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF~~ (Unaudited)

~~THE~~Note ~~PRUDENTIAL~~3: ~~VARIABLE~~Fair ~~CONTRACT~~Value ~~REAL~~Measurements ~~PROPERTY PARTNERSHIP~~ (continued)

~~March~~Table ~~31, 2015~~ 2

(~~Unaudited)~~in 000’s)

~~Note~~Fair 7:value ~~Share~~measurements ~~Values~~using ~~and~~significant ~~Shares~~unobservable ~~Outstanding~~ inputs

~~The~~for ~~share~~the ~~value~~three ~~and~~months ~~shares~~ended ~~outstanding at March~~June 3130, 2015 ~~and 2014 are as follows:~~

	3/31/2015		3/31/2014
Share Value	$	41.25	$	38.05
Shares Outstanding		4,529,591		4,776,348

(Level 3)

The capital share transactions for the three months ended are as follows:



	Real estate and improvements
Beginning balance, April 1, 2015	$	238,430
Net recognized and unrealized gains (losses) included in earnings (or changes in net assets)	490
Acquisitions, issuances and contributions	21,329
Dispositions, settlements and distributions	(12,668		)
Ending balance, June 30, 2015	$	247,581
Unrealized gains (losses) for the period relating to level 3 assets still held at the reporting date	$	364

	3/31/2015			3/31/2014
Beginning of Period		4,650,878			4,907,883
Distributions		(121,287	)		(131,535	)
End of Period		4,529,591			4,776,348

(in 000’s)

24Fair value measurements using significant unobservable inputs

~~Table~~for ofthe ~~Contents~~three months ended June 30, 2014

~~NOTES~~(Level ~~TO THE CONSOLIDATED FINANCIAL STATEMENTS OF~~ 3)

THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP



	Real estate and improvements
Beginning balance, April 1, 2014	$	218,546
Net recognized and unrealized gains (losses) included in earnings (or changes in net assets)	1,852
Acquisitions, issuances and contributions	1,463
Dispositions, settlements and distributions	—
Ending balance, June 30, 2014	$	221,861
Unrealized gains (losses) for the period relating to level 3 assets still held at the reporting date	$	1,852

~~March 31, 2015~~ 23

~~(Unaudited)~~Table of Contents

~~Note~~NOTES 8:TO ~~Financial~~THE ~~Highlights~~CONSOLIDATED FINANCIAL STATEMENTS OF

	For The Three Months Ended March 31,
	2015			2014			2013			2012			2011
Per Share(Unit) Operating Performance:
Net Asset Value attributable to general partners’ controlling interest, beginning of period	$	40.48		$	37.78		$	34.49		$	32.27		$	28.38
Income From Investment Operations:
Net investment income attributable to general partners’ controlling interest, before management fee		0.43			0.50			0.57			0.46			0.46
Investment Management fee attributable to general partners’ controlling interest		(0.14	)		(0.13	)		(0.12	)		(0.11	)		(0.09	)
Net recognized and unrealized gain (loss) on investments attributable to general partners’ controlling interest		0.48			(0.10	)		(0.27	)		0.26			0.94
Increase (decrease) in Net Assets Resulting from Operations attributable to general partners’ controlling interest		0.77			0.27			0.18			0.61			1.31
Net Asset Value attributable to general partners’ controlling interest, end of period	$	41.25		$	38.05		$	34.67		$	32.88		$	29.69
Total Return attributable to general partners’ controlling interest, before Management Fee (a):		2.26	%		1.05	%		0.88	%		2.25	%		4.96	%
Total Return attributable to general partners’ controlling interest, after Management Fee (a):		1.90	%		0.71	%		0.54	%		1.90	%		4.61	%
Ratios/Supplemental Data:
Net Assets attributable to general partners’ controlling interest, end of period (in millions)	$	187		$	182		$	175		$	170		$	173
Ratios to average net assets for the period ended (b):
Management fees		0.36	%		0.34	%		0.34	%		0.35	%		0.35	%
Other portfolio level expense		0.09	%		0.04	%		0.06	%		0.05	%		0.07	%
Total Portfolio Level Expenses		0.45	%		0.38	%		0.40	%		0.40	%		0.42	%
Net Investment Income, before Management Fee		1.07	%		1.32	%		1.65	%		1.44	%		1.63	%
Net Investment Income, after Management Fee		0.71	%		0.98	%		1.31	%		1.09	%		1.28	%

THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

~~(a)~~June ~~Total Return~~30, ~~before/after management fee is calculated by geometrically linking quarterly returns which are calculated using the formula below:~~2015

~~Net Investment Income before/after management fee + Net Recognized and Unrealized Gains/~~(~~Losses~~Unaudited)

~~Beginning~~Note ~~Net~~3: ~~Asset~~Fair Value +Measurements ~~Time Weighted Contributions - Time Weighted Distributions~~ (continued)

~~(b)~~Quantitative ~~Average~~Information ~~net~~Regarding ~~assets~~Level ~~are~~3 ~~based on beginning of quarter net assets.~~Assets:

~~Note~~The 9:table ~~Subsequent~~below ~~Event~~represents quantitative information about the significant unobservable inputs used in the fair value measurement of Level 3 assets. Significant changes in any of those inputs in isolation would result in a significant change in the fair value measurement.

On April 2, 2015, the Partnership acquired the Station House Apartments in Maplewood, NJ, for a gross purchase price of $20,350,000.



	As of June 30, 2015
Category	Fair Value (in 000’s)		Number of property(ies) in this property type	Valuation Techniques	Unobservable Input	Range (Weighted Average)
Real estate and improvements:
Apartment	$	117,691	5	Discounted cash flow	Exit capitalization rate	5.00% - 6.25% (5.48%)
					Discount rate	6.50% - 7.75% (6.98%)
				Market value**
Office	6,000		1	Discounted cash flow	Exit capitalization rate	8.00% (8.00%)
					Discount rate	9.00% (9.00%)
Retail	123,890		7	Discounted cash flow	Exit capitalization rate	6.25% - 10.00% (7.22%)
					Discount rate	6.50% - 11.00% (7.66%)
	$	247,581

** The market value approach represents assets/liabilities in which estimated fair value represents subjective estimates by management
based on the investment's specific facts and circumstances. For example development assets and recent acquisitions may heavily weight
investment cost while pending sales may heavily weight negotiated sales prices in the related fair value estimates.

25 24

Table of Contents

~~ITEM~~NOTES 2.TO ~~MANAGEMENT’S~~THE ~~DISCUSSION~~CONSOLIDATED ~~AND ANALYSIS OF~~ FINANCIAL ~~CONDITION~~STATEMENTS ~~AND RESULTS~~ OF ~~OPERATIONS~~

~~All~~THE ofPRUDENTIAL ~~the~~VARIABLE ~~assets~~CONTRACT ofREAL ~~the~~PROPERTY Real Property Account are invested in the Partnership. Accordingly, the liquidity and capital resources and results of operations for the Real Property Account are contingent upon those of the Partnership. Therefore, this management’s discussion and analysis addresses these items at the Partnership level. The general partners in the Partnership are Prudential, Pruco Life Insurance Company, and Pruco Life Insurance Company of New Jersey, or collectively, the “General Partners”. PARTNERSHIP

~~The~~June ~~following~~30, 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 Real Property Account and the unaudited consolidated financial statements of the Partnership and the related Notes included in this filing. 2015

(aUnaudited) ~~Liquidity and Capital Resources~~

AsNote ~~of March 31, 2015, the Partnership’s liquid assets, consisting of cash and cash equivalents, were approximately $28.~~3: ~~million,~~Fair ~~a decrease~~Value ofMeasurements ~~approximately $4.0 million from $32.3 million as of December 31, 2014. The decrease was primarily due to the following activities~~ (acontinued) $5.0 million distribution to the General Partners’ controlling interest; (b) $0.3 million of principal payments made on financed properties; and (c) $0.2 million paid for capital improvements and transaction costs associated with leasing expenses at various properties. Partially offsetting this decrease was an increase due to net cash flow generated from property operations of $1.5 million.

~~Sources~~Fair ofValue liquidity included net cash flow from property operations and interest from cash equivalents. The Partnership uses cash for its real estate investment activities and for distributions to its partners. As of ~~March 31,~~Financial ~~2015,~~Instruments ~~approximately~~Carried ~~10.5%~~at ~~of the Partnership’s total assets consisted of cash and cash equivalents.~~ Cost:

As of June 30, 2015 and December 31, 2014, the Partnership’s mortgages on wholly-owned properties and consolidated partnerships have an estimated fair value of approximately $79.9 million and $70.7 million, respectively, and a carrying value (bamortized cost) ~~Results~~of $79.6 million and $70.0 million, respectively. The estimated fair value is based on the amount at which the Partnership would pay to transfer the debt at the reporting date taking into consideration the effect of ~~Operations~~nonperformance risk, including the Partnership’s own credit risk. The fair value of debt is determined using the discounted cash flow method, which applies certain key assumptions including the contractual terms of the agreement, market interest rates, interest spreads, credit risk, liquidity and other factors. Different assumptions or changes in future market conditions could significantly affect the estimated fair value. The input values used in determining the fair value on investment level debt are unobservable, and therefore, would be considered as Level 3 under the fair value hierarchy.

~~The~~Note ~~following~~4: ~~is a comparison of the Partnership’s results of operations for three month periods ended March 31, 2015 and March 31, 2014.~~ Risk

~~Net~~A. ~~investment~~Valuation ~~income overview~~ Risk

The ~~Partnership’s~~estimated ~~net~~fair ~~investment~~value ~~income~~of ~~attributable~~real toestate ~~the~~and ~~general~~real ~~partners’~~estate ~~controlling~~related ~~interest~~assets ~~for~~is ~~the~~generally ~~three~~determined ~~month~~through ~~period~~an ~~ended March 31,~~appraisal ~~2015 was approximately $1~~process.3 ~~million,~~These aestimated ~~decrease~~fair ofvalues ~~approximately~~may ~~$0.5~~vary ~~million~~significantly from the ~~prior~~prices ~~year~~at ~~period.~~which ~~The~~the ~~decrease~~real inestate ~~net~~investments ~~investment~~would ~~income~~sell, ~~attributable~~since tomarket ~~the~~prices ~~general~~of ~~partners’~~real ~~controlling~~estate ~~interest~~investments ~~was~~can ~~primarily~~only ~~due~~be todetermined ~~a decrease~~by ofnegotiation ~~$0.7~~between ~~million~~a inwilling ~~the~~buyer ~~office~~and ~~sector~~seller. ~~investments~~These ~~and~~differences ancould ~~increase~~be ofmaterial ~~approximately~~to ~~$0.2~~the ~~million~~financial instatements. Although the ~~portfolio~~estimated ~~level~~fair ~~expenses~~values ~~from~~represent ~~the~~subjective ~~prior~~estimates, ~~year~~management ~~period.~~believes ~~Partially~~that ~~offsetting~~these ~~this~~estimated ~~decrease~~fair ~~was~~values anare ~~increase~~reasonable approximations of ~~approximately~~market ~~$0.4~~prices ~~million~~and ~~from~~ the ~~prior~~aggregate ~~year~~estimated ~~period~~value of investments in ~~net~~real ~~investment~~estate ~~income~~and ~~attributable~~improvements toare ~~the~~fairly ~~general~~presented ~~partners’~~as ~~controlling~~of ~~interest~~June ~~from~~30, ~~the~~2015 ~~retail~~and ~~sector.~~December 31, 2014.

~~Valuation~~B. ~~overview~~Financing, Covenant, and Repayment Risks

~~The Partnership~~In ~~recorded~~the anormal ~~net~~course ~~unrealized~~of ~~gain~~business, ~~attributable~~the toPartnership ~~the~~enters ~~general~~into ~~partners’~~loan ~~controlling~~agreements ~~interest~~with ofcertain ~~approximately~~lenders $2to finance its real estate investment transactions.2 ~~million~~Unfavorable ~~for~~economic ~~the~~conditions ~~three~~could ~~month~~increase ~~period~~related ~~ended~~borrowing ~~March 31~~costs, ~~2015.~~limit ~~This~~access isto ~~compared~~the ~~with~~capital markets or result in a ~~net~~decision ~~unrealized~~by ~~loss~~lenders ~~attributable~~ not to ~~the~~extend ~~general~~credit ~~partners’~~to ~~controlling~~the ~~interest~~Partnership. ofThere ~~approximately~~is ~~$0.5~~no ~~million~~guarantee ~~for~~that the ~~prior~~Partnership’s ~~year~~borrowing ~~period.~~arrangements ~~The~~or ~~unrealized~~ability ~~gains~~to ~~attributable~~obtain leverage will continue to ~~the~~be ~~general~~available, ~~partners’~~or ~~controlling~~if ~~interest~~available, ~~for~~will ~~the~~be ~~three~~on ~~month~~terms ~~period~~and ~~ended~~conditions ~~March 31~~acceptable to the Partnership. Further, ~~2015 were~~these ~~primarily~~loan ~~due~~agreements tocontain, ~~valuation~~among ~~increases~~other ofconditions, ~~$1.7~~events ~~million~~of indefault ~~the~~and ~~retail~~various ~~sector~~covenants and $0representations.6 ~~million~~In inthe normal course of business, the ~~apartment~~Partnership ~~sector.~~may ~~Partially~~be ~~offsetting~~in the ~~unrealized~~process ~~gains~~of ~~was~~renegotiating anterms ~~unrealized~~for ~~loss~~loans inoutstanding ~~the~~that ~~office~~have ~~sector~~passed ~~investments~~their maturity dates. At June 30, 2015, the Partnership had no outstanding matured loans.

26A decline in market value of the Partnership’s assets may also have particular adverse consequences in instances where the Partnership borrowed money based on the fair value of specific assets. A decrease in market value of these assets may result in the lender requiring the Partnership to post additional collateral or otherwise repay these loans.

~~Table~~In the event the Partnership’s current portfolio and investment obligations are not refinanced or extended when they become due, management anticipates that the repayment of ~~Contents~~these obligations will be provided by operating cash flow, new debt refinancing, and real estate investment sales.

~~The~~Note ~~following~~5: ~~table~~Commitments ~~presents a comparison of the Partnership’s sources of net investment income attributable to the general partners’ controlling interest~~ and ~~net recognized and unrealized gains (losses) attributable to the general partners’ controlling interest for the three month periods ended March 31, 2015 and March 31, 2014.~~ Contingencies

	Three Months Ended March 31,
	2015			2014
Net Investment Income (Loss):
Office properties	$	(103,625	)	$	633,291
Apartment properties		935,648			868,030
Retail properties		1,389,891			977,140
Hotel property		(25,584	)		42,635
Other (including interest income, investment management fee, etc.)		(855,428	)		(706,358	)
Total Net Investment Income	$	1,340,902		$	1,814,738
Net Unrealized Gain (Loss) on Real Estate Investments:
Office properties		(104,891	)		(678,741	)
Apartment properties		635,474			27,594
Retail properties		1,702,622			(155,630	)
Hotel property		—			310,525
Net Unrealized Gain (Loss) on Real Estate Investments	$	2,233,205		$	(496,252	)

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 the Partnership’s management, the outcome of such matters will not have a significant effect on the financial position of the Partnership.

27 25

Table of Contents

~~OFFICE~~NOTES ~~PROPERTIES~~TO THE CONSOLIDATED FINANCIAL STATEMENTS OF

Quarter Ended March 31,	Net InvestmentIncome/(Loss)2015			Net Investmentlncome/(Loss)2014		UnrealizedGain/(Loss)2015			UnrealizedGain/(Loss)2014			Occupancy2015			Occupancy2014
Property
Lisle, IL	$	(17,217	)	$	131,670	$	(201,891	)	$	(769,228	)		38	%		31	%
Brentwood, TN #1 (1)		—			15,096		—			—			N/A			N/A
Beaverton, OR		(56,378	)		166,503		100,000			90,487			100	%		100	%
Brentwood, TN #2 (1)		—			17,022		—			—			N/A			N/A
	$	(103,625	)	$	633,291	$	(104,891	)	$	(678,741	)

THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

~~(1)~~June ~~The Brentwood~~30, ~~Tennessee properties were sold on December 12, 2013. 2014 net investment income represents post closing accrual write-offs.~~2015

~~Net investment income/~~(~~loss~~Unaudited)

~~Net~~Note ~~investment~~6: ~~loss~~Related ~~attributable~~Party to the general partners’ controlling interest for the Partnership’s office properties was approximately $0.1 million for the three month period ended March 31, 2015, which represents a decrease of approximately $0.7 million from the prior year period, primarily due to a one time lease termination fee from a tenant that vacated in 2014 at the property in Lisle, Illinois. In addition, a decrease in net investment income was also attributable to a rent credit as a result of the lease renewal and expansion for the anchor tenant at the property in Beaverton, Oregon. Transactions

~~Unrealized~~Pursuant ~~gain/(loss)~~to an investment management agreement, PIM charges the Partnership a daily investment management fee at an annual rate of 1.25% of the average daily gross asset valuation of the Partnership. For the six month periods ended June 30, 2015 and 2014, management fees incurred by the Partnership were $1,378,984 and $1,261,889, respectively. The Partnership also reimburses PIM for certain administrative services rendered by PIM. The amounts incurred for the six month periods ended June 30, 2015 and 2014 were $26,814 and $0, respectively, and are classified as administrative expenses in the consolidated statements of operations. For the three month periods ended June 30, 2015 and 2014, management fees incurred by the Partnership were $701,488 and $629,344, respectively. The administrative services the Partnership reimburses PIM incurred for the three month periods ended June 30, 2015 and 2014 were $13,407 and $0, respectively.

~~The~~Note office properties owned by the Partnership recorded a net unrealized loss attributable to the general partners’ controlling interest of approximately $0.1 million for the three month period ended March 31, 2015, compared with a net unrealized loss attributable to the general partners’ controlling interest of approximately $0.7: Share ~~million~~Values ~~from~~and ~~the~~Shares prior year period. The net unrealized loss attributable to the general partners’ controlling interest for the three month period ended March 31, 2015 was primarily due to a loss on the property located in Lisle, Illinois from less favorable market rent assumptions. Partially offsetting the net unrealized loss was an unrealized gain due to a decrease in near term capital expenditures at the property in Beaverton, Oregon. Outstanding

28The share value and shares outstanding at June 30, 2015 and 2014 are as follows:




	6/30/2015		6/30/2014
Share Value	$41.62		$38.75
Shares Outstanding	4,529,591		4,776,348

The capital share transactions for the six months ended are as follows:

	6/30/2015		6/30/2014
Beginning of Period	4,650,878		4,907,883
Distributions	(121,287	)	(131,535	)
End of Period	4,529,591		4,776,348

~~APARTMENT PROPERTIES~~ 26

Quarter Ended March 31,	Net InvestmentIncome/(Loss)2015		Net InvestmentIncome/(Loss)2014		UnrealizedGain/(Loss)2015			UnrealizedGain/(Loss)2014			Occupancy2015			Occupancy2014
Property
Austin, TX		358,063		373,567		(139,660	)		(8,502	)		94	%		93	%
Charlotte, NC		221,528		202,882		164,896			210,041			97	%		94	%
Seattle, WA #1		155,445		139,543		(12,270	)	$	(54,623	)		90	%		93	%
Seattle, WA #2		200,612		152,038		622,508		$	(119,322	)		93	%		100	%
	$	935,648	$	868,030	$	635,474		$	27,594

Table of Contents

~~Net~~NOTES ~~investment~~TO ~~income~~THE CONSOLIDATED FINANCIAL STATEMENTS OF

~~Net~~THE ~~investment~~PRUDENTIAL ~~income~~VARIABLE ~~attributable~~CONTRACT toREAL ~~the~~PROPERTY general partners’ controlling interest for the Partnership’s apartment properties was approximately $0.9 million for the three month period ended March 31, 2015, which represents an increase of less than $0.1 million from the prior year period. This increase was primarily due to increased rents from unit renovations at the properties in Seattle, Washington and Charlotte, North Carolina. PARTNERSHIP

~~Unrealized~~June ~~gain/(loss)~~30, 2015

The apartment properties owned by the Partnership recorded a net unrealized gain attributable to the general partners’ controlling interest of approximately $0.6 million for three month period ended March 31, 2015, compared with a net unrealized gain attributable to the general partners’ controlling interest of less than $0.1 million from the prior year period. These gains were due to favorable market leasing assumptions at the properties in Charlotte, North Carolina and Seattle, Washington. Partially offsetting the gain was a loss at the property in Austin, Texas due to an increase in near term capital expenditures. (Unaudited)

29Note 8: Financial Highlights



	For The Six Months Ended June 30,
	2015			2014			2013			2012			2011
Per Share (Unit) Operating Performance:
Net Asset Value attributable to general partners’ controlling interest, beginning of period	$	40.48		$	37.78		$	34.49		$	32.27		$	28.38
Income From Investment Operations:
Net investment income attributable to general partners’ controlling interest, before management fee	0.93			0.98			1.09			0.96			0.92
Investment Management fee attributable to general partners’ controlling interest	(0.31		)	(0.26		)	(0.25		)	(0.22		)	(0.20		)
Net recognized and unrealized gain (loss) on investments attributable to general partners’ controlling interest	0.52			0.25			0.28			0.03			1.29
Increase (decrease) in Net Assets Resulting from Operations attributable to general partners’ controlling interest	1.14			0.97			1.12			0.77			2.01
Net Asset Value attributable to general partners’ controlling interest, end of period	$	41.62		$	38.75		$	35.61		$	33.04		$	30.39
Total Return attributable to general partners’ controlling interest, before Management Fee (a):	3.58		%	3.28		%	3.99		%	3.07		%	7.78		%
Total Return attributable to general partners’ controlling interest, after Management Fee (a):	2.84		%	2.57		%	3.27		%	2.37		%	7.06		%
Ratios/Supplemental Data:
Net Assets attributable to general partners’ controlling interest, end of period (in millions)	$	189		$	185		$	179		$	171		$	172
Ratios to average net assets for the period ended (b):
Management fees	0.74		%	0.69		%	0.70		%	0.69		%	0.70		%
Other portfolio level expense	0.16		%	0.10		%	0.11		%	0.13		%	0.13		%
Total Portfolio Level Expenses	0.90		%	0.79		%	0.81		%	0.82		%	0.83		%
Net Investment Income, before Management Fee	2.27		%	2.60		%	3.16		%	2.97		%	3.16		%
Net Investment Income, after Management Fee	1.53		%	1.91		%	2.45		%	2.27		%	2.43		%

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

Quarter Ended March 31,	Net InvestmentIncome/(Loss)2015		Net InvestmentIncome/(Loss)2014		UnrealizedGain/(Loss)2015			UnrealizedGain/(Loss)2014			Occupancy2015			Occupancy2014
Property
Hampton, VA	$	349,831	$	267,629	$	1,776,816		$	12,312			96	%		96	%
Ocean City, MD		212,518		204,099		(4,804	)		323,582			96	%		96	%
Westminster, MD		298,242		308,620		(56,882	)		(64,247	)		100	%		100	%
Dunn, NC		88,973		25,735		(529,792	)		(714,419	)		48	%		33	%
Roswell, GA		132,330		136,284		100,000			287,142			94	%		96	%
North Fort Myers, FL		123,338		34,773		300,000			—			85	%		88	%
Norcross, GA		184,659		—		117,284			—			100	%		N/A
	$	1,389,891	$	977,140	$	1,702,622		$	155,630

Net Investment Income before/after management fee + Net Recognized and Unrealized Gains/(Losses)

Beginning Net ~~investment~~Asset ~~income~~Value + Time Weighted Contributions - Time Weighted Distributions

~~Net~~(b) ~~investment~~Average ~~income~~net ~~attributable~~assets toare ~~the~~based ~~general~~on ~~partners’~~beginning ~~controlling interest for the Partnership’s retail properties was approximately $1.4 million for the three month period ended March 31, 2015, which represents an increase~~ of ~~approximately~~quarter ~~$0.4 million from the prior year period. The increase in~~ net investment income attributable to the general partners’ controlling interest for the three month period ended March 31, 2015 was largely due to the additional income provided by the properties in North Fort Myers, Florida and Norcross, Georgia that were acquired in March, 2014 and December, 2014, respectivelyassets. In addition, an increase in net investment income was also attributable to increased occupancy at the property in Dunn, North Carolina and increased contract rents at the property in Hampton, Virginia.

~~Unrealized gain/(loss)~~ 27

~~The~~Table ~~retail properties owned by the Partnership recorded a net unrealized gain attributable to the general partners’ controlling interest~~ of approximately $1.7 million for the three month period ended March 31, 2015, compared with a net unrealized loss attributable to the general partners’ controlling interest of approximately $0.2 million from the prior year period. The net unrealized gain attributable to the general partners’ controlling interest for the three month period ended March 31, 2015 was primarily due to lower investment rates at the properties in Hampton, Virginia, and North Fort Myers, Florida. Investment rates include direct and terminal capitalization rates, and discount rates, which reflect investors’ yield requirements on investments. Additional gains were attributable to favorable market leasing assumptions at the property in Hampton, Virginia. Partially offsetting the net unrealized gain was an unrealized loss at the property in Dunn, North Carolina due to less favorable market leasing assumptions and increased operating expenses. Contents

30ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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

~~HOTEL~~The ~~PROPERTY~~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 Real Property Account and the unaudited consolidated financial statements of the Partnership and the related Notes included in this filing.

Quarter Ended March 31,	Net InvestmentIncome/(Loss)2015			Net InvestmentIncome/(Loss)2014		RecognizedGain/(Loss)2015		UnrealizedGain/(Loss)2014		Occupancy2015		Occupancy2014
Property
Lake Oswego, OR (1)	$	(25,584	)	$	42,635	$	—	$	310,525		N/A		60	%

(a) Liquidity and Capital Resources

As of June 30, 2015, the Partnership’s liquid assets, consisting of cash and cash equivalents, were approximately $31.5 million, a decrease of approximately $0.8 million from $32.3 million as of December 31, 2014. The decrease was primarily due to the following activities: (1a) ~~The~~$10.3 ~~Lake~~million ~~Oswego~~of equity for an acquisition of an apartment complex located in Maplewood, ~~Oregon~~New ~~property~~Jersey; ~~was~~(b) ~~sold~~$5.0 million distribution to the General Partners’ controlling interest; (c) $0.6 million of principal payments made on ~~October~~financed 29properties; and (d) $0.8 million paid for capital improvements. The $0.8 million payment for capital improvements included the following items: (a) $0.3 million for leasing expenses at the office property in Lisle, ~~2014~~Illinois; (b) $0.1 ~~2015~~million ~~net~~for ~~investment~~unit ~~loss~~upgrades ~~represents~~at ~~post~~one ~~closing~~of the apartment properties in Seattle, Washington; (c) $0.1 million for space renovations at the retail property in Ocean City, Maryland; and (d) $0.3 million for capital improvements and transaction costs associated with leasing expenses at various properties. Partially offsetting this decrease were the following activities: (a) net cash flow generated from property operations of $3.2 million; and (b) $12.7 million of proceeds from the sale of the office in Beaverton, Oregon.

~~Net~~Sources of liquidity included net cash flow from property operations and interest from cash equivalents. The Partnership uses cash for its real estate investment ~~income/(loss)~~activities and for distributions to its General Partners. As of June 30, 2015, approximately 11.2% of the Partnership’s total assets consisted of cash and cash equivalents.

~~Net~~(b) ~~investment~~Results loss attributable to the general partners’ controlling interest for the Partnership’s hotel property was less than $0.1 million for the three month period ended March 31, 2015, which represents a decrease of ~~$0.1 million from the prior year period. The decrease at the property in Lake Oswego, Oregon was a result of the property being sold on October 29, 2014.~~ Operations

~~Recognized~~The following is a comparison of the Partnership’s results of operations for the three and ~~Unrealized~~six ~~gain/(loss)~~month periods ended June 30, 2015 and June 30, 2014.

~~The~~Net ~~Partnership~~investment ~~sold~~income the hotel property on October 29, 2014 and did not record a net unrealized or recognized gain/loss attributable to the general partners’ controlling interest for three month period ended March 31, 2015, compared with an unrealized gain attributable to the general partners’ controlling interest of approximately $0.3 million for the prior year period. overview

~~Other~~The Partnership’s net investment income attributable to the General Partners’ controlling interest for the six month period ended June 30, 2015 was approximately $2.9 million, a decrease of approximately $0.6 million from the prior year period. The decrease in net investment income attributable to the General Partners’ controlling interest was primarily due to a decrease of $1.1 million in the office sector investments’ net investment income from the prior year period and a decrease of approximately $0.4 million in the hotel sector investments’ net investment income from the prior year period. Partially offsetting this decrease was an increase of approximately $0.6 million from the prior year period in net investment income attributable to the General Partners’ controlling interest from the retail sector and an increase of approximately $0.4 million from the prior year period in net investment income attributable to the General Partners’ controlling interest from the apartment sector.

~~Other~~ The Partnership’s net investment ~~expense~~income ~~mainly~~attributable ~~includes~~to ~~investment~~the ~~management~~General ~~fees~~Partners’ controlling interest for the three month period ended June 30, ~~other~~2015 ~~portfolio~~was ~~level~~approximately ~~expenses~~$1.5 ~~and~~million, ~~interest~~a ~~income~~decrease of approximately $0.2 ~~Other~~million from the prior year period. The decrease in net investment ~~expense~~income attributable to the ~~general~~General ~~partners~~Partners’ controlling interest was ~~approximately~~primarily due to a decrease of $0.93 million ~~for three~~in ~~month~~the ~~period~~office ~~ended~~sector ~~March 31,~~investments’ ~~2015,~~net ~~which~~investment ~~represents~~income anfrom ~~increase~~the prior year period, a decrease of $0.23 million in the hotel sector investments’ net investment income from the prior year period and a decrease of approximately $0.1 ~~The~~million net investment income from portfolio level expenses. Partially offsetting this decrease was an increase of approximately $0.3 million from the prior year period in net investment ~~expense~~income isattributable ~~due~~ to ~~increased~~the ~~appraisal~~General Partners’ controlling interest from the apartment sector and ~~management~~an ~~fees~~increase of approximately $0.2 million from the prior year period in net investment income attributable to the General Partners’ controlling interest from the retail sector.

31 28

Table of Contents

~~(c)~~Valuation ~~Inflation~~ overview

AThe ~~majority~~Partnership ofrecorded a net recognized and unrealized gain attributable to the ~~Partnership~~General Partners’s ~~leases~~controlling ~~with~~interest ~~its~~of ~~commercial~~approximately ~~tenants~~$2.4 ~~provide~~million for ~~recoveries~~the ofsix ~~expenses~~month ~~based~~period ~~upon~~ended June 30, 2015. This is compared with a net unrealized gain attributable to the ~~tenant~~General Partners’~~s proportionate~~ ~~share~~controlling interest of, ~~and/or~~approximately ~~increases~~$1.2 ~~in,~~million ~~real~~for ~~estate~~the ~~taxes~~prior ~~and~~year ~~certain~~period. The ~~operating~~unrealized ~~costs,~~gains ~~which~~attributable ~~may~~to ~~partially~~the ~~reduce~~General Partners’ controlling interest for the ~~Partnership’s~~six ~~exposure~~month period ended June 30, 2015 were primarily due to valuation increases in ~~operating~~the ~~costs~~apartment ~~resulting~~and ~~from~~retail ~~inflation~~investments of $3.1 million. A net recognized gain of $0.1 million was attributable to the sale of one office investment located in Beaverton, Oregon. Partially offsetting the gains was an unrealized loss in the office sector investments.

~~Critical~~The ~~Accounting~~Partnership ~~Policies~~recorded a net recognized and unrealized gain attributable to the General Partners’ controlling interest of approximately $0.2 million for the three month period ended June 30, 2015. This is compared with a net unrealized gain attributable to the General Partners’ controlling interest of approximately $1.7 million for the prior year period. The unrealized gains attributable to the General Partners' controlling interest for the three month period ended June 30, 2015 were primarily due to valuation increases in the apartment investments. In addition, a net recognized gain $0.1 million was attributable to the sale of one office investment located in Beaverton, Oregon. Partially offsetting the gains were unrealized losses in the retail and office sector investments.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, or “U.S. 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 statements of the Real Property Account and the unaudited consolidated financial statements of the Partnership may change significantly. 29

~~The~~Table ~~following sections discuss those critical accounting policies applied in preparing the unaudited financial statements~~ of ~~the Real Property Account and the unaudited consolidated financial statements of the Partnership that are most dependent on the application of estimates and assumptions.~~ Contents

~~Valuation~~The following table presents a comparison of ~~Investments~~the Partnership’s sources of net investment income attributable to the General Partners’ controlling interest and net recognized and unrealized gains or (losses) attributable to the General Partners’ controlling interest for the three and six month periods ended June 30, 2015 and 2014.

Real estate investments are carried at fair value. Properties owned are initially recorded at the purchase price plus closing costs. Development costs and major renovations are capitalized as a component of cost, and routine maintenance and repairs are charged to expense as incurred. Real estate costs include the cost of acquired property, including all the tangible and intangible assets. Tangible assets include the value of all land, building and tenant improvements at the time of acquisition. Intangible assets include the value of any above and below market leases, in-place leases, and tenant relationships at the time of acquisition.



	Six Months Ended June 30,						Three Months Ended June 30,
	2015			2014			2015			2014
Net Investment Income (loss):
Office properties	$	(300,404	)	$	766,328		$	(196,779	)	$	133,037
Apartment properties	2,090,064			1,691,539			1,154,416			823,510
Retail properties	2,808,064			2,172,862			1,418,175			1,195,721
Hotel property	(54,857		)	309,223			(29,273		)	266,588
Other (including interest income, investment management fee, etc.)	(1,673,466		)	(1,438,201		)	(818,040		)	(731,843		)
Total Net Investment Income	$	2,869,401		$	3,501,751		$	1,528,499		$	1,687,013
Net Recognized Gain (Loss) on Real Estate Investments:
Office Properties	$	125,879		$	—		$	125,879		$	—
Net Recognized Gain (Loss) on Real Estate Investments	$	125,879		$	—		$	125,879		$	—
Net Unrealized Gain (Loss) on Real Estate Investments:
Office properties	$	(773,375	)	$	(869,312	)	$	(668,483	)	$	(190,572	)
Apartment properties	1,825,979			888,592			1,190,504			860,998
Retail properties	1,239,851			876,576			(462,771		)	1,032,206
Hotel property	—			300,671			—			(9,853		)
Net Unrealized Gain (Loss) on Real Estate Investments	$	2,292,455		$	1,196,527		$	59,250		$	1,692,779
Net Recognized and Unrealized Gain (Loss) on Real Estate Investments	$	2,418,334		$	1,196,527		$	185,129		$	1,692,779

In general, fair value estimates are based upon property appraisal reports prepared by independent real estate appraisers (members of the Appraisal Institute or an equivalent organization) within a reasonable amount of time following acquisition of the real estate and no less frequently than annually thereafter. The Chief Real Estate Appraiser of Prudential Investment Management, Inc. (“PIM”), which is an indirectly owned subsidiary of Prudential Financial, is responsible for assuring that the valuation process provides independent and reasonable property fair value estimates. An unaffiliated third party has been appointed by PIM to assist the Chief Real Estate Appraiser in maintaining and monitoring the independence and the accuracy of the appraisal process. The fair value of real estate investments does not reflect the transaction sale costs, which may be incurred upon disposition of the real estate investments. 30

~~The~~Table ~~purpose~~ of an appraisal is to estimate the fair value of real estate as of a specific date. In accordance with Financial Accounting Standards Board (“FASB”) authoritative guidance on fair value measurements and disclosures, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The estimate of fair value is based on the conventional approaches to value, all of which require the exercise of subjective judgment. The three approaches are: (1) current cost of reproducing the real estate less deterioration and functional and economic obsolescence; (2) discounting a series of income streams and reversion at a specific yield or by directly capitalizing a single three month period income estimate by an appropriate factor; and (3) value indicated by recent sales of comparable real estate in the market. Key inputs and assumptions include rental income and expense amounts, related rental income and expense growth rates, discount rates and capitalization rates. In the reconciliation of these three approaches, the independent appraiser uses one or a combination of them, to determine the approximate value for the type of real estate in the market. Contents

~~Cash~~OFFICE ~~equivalents include short-term investments with maturities of three months or less when purchased.~~ PROPERTIES

Other Estimates



Six Months Ended June 30,	Net Investment Income/(Loss) 2015			Net Investment Income/(Loss) 2014		Recognized/Unrealized Gain/(Loss) 2015			Unrealized Gain/(Loss) 2014			Occupancy 2015		Occupancy 2014
Property
Lisle, IL	$	(59,932	)	$	373,791	$	(773,375	)	$	(1,072,224	)	55	%	38	%
Brentwood, TN #1 ⁽¹⁾	—			15,096		—			—			N/A		N/A
Beaverton, OR ⁽²⁾	(240,472		)	360,419		125,879			202,912			N/A		100	%
Brentwood, TN #2 ⁽¹⁾	—			17,022		—			—			N/A		N/A
	$	(300,404	)	$	766,328	$	(647,496	)	$	(869,312	)

The preparation of financial statements in conformity with U.S. 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 of the Real Property Account and the unaudited consolidated financial statements of the Partnership, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.



Three Months Ended June 30,
Property
Lisle, IL	$	(12,685	)	$	(60,879	)	$	(568,483	)	$	(302,996	)
Beaverton, OR	(184,094		)	193,916			25,879			112,424
	$	(196,779	)	$	133,037		$	(542,604	)	$	(190,572	)

32(1) The Brentwood, Tennessee properties were sold on December 12, 2013. 2014 net investment income represents post closing expense write-offs. (2) The Beaverton, Oregon property was sold on June 8, 2015.

~~Table~~Net ofinvestment ~~Contents~~income/(loss)

~~ITEM~~Net investment income attributable to the General Partners’ controlling interest for the Partnership’s office properties was a loss of approximately $0.3 million and $0.2 ~~Quantitative~~million for the six and ~~Qualitative~~three ~~Disclosures~~month ~~about~~periods ~~Market~~ended ~~Risk~~June 30, 2015, respectively, which represents a decrease of approximately $1.1 million and $0.3 million from the prior year periods, respectively. The decreases in net income are primarily due to lease termination fees paid in 2014 at the property in Lisle, Illinois, and expenses from the sale of the property in Beaverton, Oregon in 2015.

~~Interest~~Recognized Rate Risk – The general partners’ controlling interest exposure to market rate risk for changes in interest rates relates to approximately 50.98% of its investment portfolio as of March 31, 2015, which consists primarily of short-term commercial paper and ~~fixed~~Unrealized and variable interest rate debt. The Partnership does not use derivative financial instruments. As a matter of policy, the Partnership places its investments with high quality debt security issuers, limits the amount of credit exposure to any one issuer, limits duration by restricting the term, and holds investments to maturity except under unusual circumstances. gain/(loss)

The ~~table~~office ~~below~~properties ~~presents~~owned by the ~~amounts~~Partnership recorded a net recognized and ~~related~~unrealized ~~weighted~~loss attributable to the General Partners’ controlling interest ~~rates~~of approximately $0.6 million and $0.5 million for the six and three month periods ended June 30, 2015, respectively, compared with a net unrealized loss attributable to the General Partners’ controlling interest of approximately $0.9 million and $0.2 million for the ~~Partnership~~ prior year period, respectively. The unrealized loss attributable to the General Partners’s ~~cash~~controlling interest for the six month and ~~cash~~three ~~equivalents~~month atperiod ~~March 31~~ended June 30, 2015: was primarily due to a value decrease and capital expenditures at the property in Lisle, Illinois. Partially offsetting these losses was a recognized gain on the sale of the property in Beaverton, Oregon.

		Maturity		EstimatedMarket Value(millions)				AverageInterest Rate
Cash and cash equivalents		0-3 months		$	28.3				0.06	%

~~The~~Table ~~table below discloses the Partnership’s investment level debt as~~ of March 31, 2015. The fair value of the Partnership’s long-term investment level debt is affected by changes in market interest rates. The following table presents principal cash flows based upon maturity dates of the debt obligations and the related weighted-average interest rates by expected maturity dates for the debt. Contents

Investment level debt (in $ 000s),including current portion	2015			2016			2017			2018			2019			Thereafter			Total			EstimatedFair Value
Weighted Average Fixed Interest Rate		4.84	%		4.72	%		4.67	%		4.61	%		4.58	%		4.32	%		4.62	%
Future Annual Principal Payments	$	13,316		$	1,153		$	1,327		$	2,408		$	1,680		$	49,855		$	69,739		$	70,500

APARTMENT PROPERTIES

Credit Risk – 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, tenant delinquencies could increase and result in losses to the Partnership and the Real Property Account that could adversely affect its operating results and liquidity.



Six Months Ended June 30,	Net Investment Income/(Loss) 2015		Net Investment Income/(Loss) 2014			Unrealized Gain/(Loss) 2015		Unrealized Gain/(Loss) 2014		Occupancy 2015		Occupancy 2014
Property
Raleigh, NC	$	—	$	(64,926	)	$	—	$	—	N/A		N/A
Austin, TX	730,420		732,192			433,636		81,449		94	%	98	%
Charlotte, NC	437,626		421,312			123,242		429,444		99	%	99	%
Seattle, WA #1	267,621		295,819			53,603		149,372		92	%	82	%
Seattle, WA #2	397,517		307,142			1,215,498		228,327		98	%	81	%
Maplewood, NJ	256,880		—			—		—		86	%	N/A
	$	2,090,064	$	1,691,539		$	1,825,979	$	888,592

ITEM 4. Controls and Procedures



Three Months Ended June 30,
Property
Raleigh, NC	$	—	$	(64,926	)	$	—		$	—
Austin, TX	372,357		358,625			573,296			89,951
Charlotte, NC	216,098		218,430			(41,654		)	219,403
Seattle, WA #1	112,176		156,276			65,870			203,995
Seattle, WA #2	196,905		155,105			592,992			347,649
Maplewood, NJ	256,880		—			—			—
	$	1,154,416	$	823,510		$	1,190,504		$	860,998

InNet ~~order~~investment 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 Rules 13a-15income/(eloss) and 15d-15(e), as amended under the Securities Exchange Act of 1934 (“the Exchange Act”), as of March 31, 2015. Based on such evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that, as of March 31, 2015, our disclosure controls and procedures were effective. No change in our internal control over financial reporting, as defined in Exchange Act Rules 13a-15(f) and 15d-15(e) occurred during the quarter ended March 31, 2015, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

33Net investment income attributable to the General Partners’ controlling interest for the Partnership’s apartment properties was approximately $2.1 million and $1.2 million for the six and three month periods ended June 30, 2015, respectively, which represents an increase of approximately $0.4 million from each of the prior year periods. The increase was primarily due to the acquisition of the apartment complex in Maplewood, New Jersey and increased rents at a property in Seattle, Washington.

~~Table~~Recognized ofand ~~Contents~~Unrealized gain/(loss)

~~PART~~The IIapartment –properties ~~OTHER~~owned ~~INFORMATION~~by the Partnership recorded a net unrealized gain attributable to the General Partners’ controlling interest of approximately $1.8 million and $1.2 million for the six and three month periods ended June 30, 2015, respectively, compared with a net unrealized gain attributable to the General Partners’ controlling interest of approximately $0.9 million for each of the prior year periods. The unrealized gain attributable to the General Partners’ controlling interest for the six month and three month periods ended June 30, 2015 was primarily due to favorable market leasing assumptions at the properties in Austin, Texas and Seattle, Washington.

~~Item 1A. Risk Factors~~32

~~You~~Table should carefully consider the risks described under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2014. These risks could materially affect our business, results of operations or financial condition, or cause our actual results to differ materially from those expected or those expressed in any forward looking statements made by or on behalf of the Company. These risks are not exclusive, and additional risks to which we are subject include, but are not limited to, the factors mentioned under “Forward-Looking Statements” above and the risks of our business described elsewhere in this Quarterly Report on Form 10-Q. Contents

~~Item~~RETAIL ~~6. Exhibits~~PROPERTIES

31.1 Section 302 Certification of the Chief Executive Officer.



Six Months Ended June 30,	Net Investment Income/(Loss) 2015		Net Investment Income/(Loss) 2014		Unrealized Gain/(Loss) 2015			Unrealized Gain/ (Loss) 2014			Occupancy 2015		Occupancy 2014
Property
Hampton, VA	$	702,465	$	598,440	$	1,068,478		$	609,162		96	%	96	%
Ocean City, MD	458,658		430,952		9,807			345,213			96	%	96	%
Westminster, MD	641,827		646,175		(57,400		)	(64,247		)	100	%	100	%
Dunn, NC	174,789		68,500		(493,018		)	(419,070		)	27	%	46	%
Roswell, GA	222,987		266,709		200,000			378,642			94	%	94	%
North Fort Myers, FL	237,490		162,086		394,700			26,876			85	%	88%
Norcross, GA	369,848		—		117,284			—			100	%	N/A
	$	2,808,064	$	2,172,862	$	1,239,851		$	876,576

31.2 Section 302 Certification of the Chief Financial Officer.



Three Months Ended June 30,
Property
Hampton, VA	$	352,634	$	330,811	$	(708,338	)	$	596,850
Ocean City, MD	246,140		226,853		14,611			21,631
Westminster, MD	343,585		337,555		(518		)	—
Dunn, NC	85,816		42,766		36,774			295,349
Roswell, GA	85,697		130,423		100,000			91,500
North Fort Myers, FL	114,152		127,313		94,700			26,876
Norcross, GA	190,151		—		—			—
	$	1,418,175	$	1,195,721	$	(462,771	)	$	1,032,206

~~32.1~~Net ~~Section 906~~investment ~~Certification of the Chief Executive Officer.~~ income

~~32.~~Net investment income attributable to the General Partners’ controlling interest for the Partnership’s retail properties was approximately $2.8 ~~Section~~million ~~906~~for ~~Certification~~the six month period ended June 30, 2015, which represents an increase of approximately $0.6 million from the ~~Chief~~prior ~~Financial~~year ~~Officer~~period. The increase was largely due to the additional income provided by the property in Norcross, Georgia that was acquired in December, 2014 and the property in North Fort Myers, Florida that was acquired in March, 2014. Net investment income attributable to General Partners’ controlling interest for the Partnership’s retail properties was approximately $1.4 million for the three month period ended June 30, 2015, which represents an increase of approximately $0.2 million from the prior year period. The increase was primarily due to the additional income provided by the property in Norcross, Georgia that was acquired in December, 2014.

~~101.INS~~Unrealized ~~-XBRL Instance Document.~~ gain/(loss)

~~101~~The retail properties owned by the Partnership recorded a net unrealized gain attributable to the General Partners’ controlling interest of approximately $1.~~SCH~~2 ~~-XBRL~~million ~~Taxonomy Extension~~for ~~Schema~~the ~~Document~~six month period ended June 30, 2015, compared with a net unrealized gain attributable to the General Partners’ controlling interest of approximately $0.9 million from the prior year period. The net unrealized gain attributable to the General Partners’ controlling interest for the six month period ended June 30, 2015 was primarily due to favorable market leasing assumptions at the property in Hampton, Virginia and decreased operating expenses at the property in North Fort Myers, Florida. Partially offsetting the net unrealized gain was an unrealized loss at the property in Dunn, North Carolina due to lower occupancy. The retail properties owned by the Partnership recorded a net unrealized loss attributable to the General Partners’ controlling interest of approximately $0.5 million for the three month period ended June 30, 2015, compared with a net unrealized gain attributable to the General Partners’ controlling interest of approximately $1.0 million from the prior year period. The net unrealized loss attributable to the General Partners’ controlling interest for the three month period ended June 30, 2015 was primarily due to higher investment rates from a national tenant store closing at the property in Hampton, Virginia. Investment rates include direct and terminal capitalization rates, and discount rates, which reflect investors’ yield requirements on investments. Partially offsetting this loss was a net unrealized gain at the property in Roswell, Georgia from increased rents and a decrease in real estate tax expense at the property in North Fort Myers, Florida.

~~101.CAL -XBRL Taxonomy Extension Calculation Linkbase Document.~~ 33

~~101.LAB~~Table ~~-XBRL~~of ~~Taxonomy Extension Label Linkbase Document.~~ Contents

~~101.PRE~~HOTEL ~~-XBRL Taxonomy Extension Presentation Linkbase Document.~~ PROPERTY

101.DEF-XBRL Taxonomy Extension Definition Linkbase Document.



Six Months Ended June 30,	Net Investment Income/(Loss) 2015			Net Investment Income/(Loss) 2014		Unrealized Gain/(Loss) 2015	Unrealized Gain/(Loss) 2014		Occupancy 2015	Occupancy 2014
Property
Lake Oswego, OR ⁽¹⁾	$	(54,857	)	$	309,223	$ -	$	300,671	N/A	67	%



Three Months Ended June 30,
Property
Lake Oswego, OR⁽¹⁾	$	(29,273	)	$	266,588	$ -	$	(9,853	)
⁽¹⁾ The Lake Oswego, Oregon property was sold on October 29, 2014. 2015 net investment loss represents post closing expenses.

~~Table~~Net ofinvestment ~~Contents~~income/(loss)

~~SIGNATURES~~Net investment loss attributable to the General Partners’ controlling interest for the Partnership’s hotel property was less than $0.1 million for the six and three month periods ended June 30, 2015, respectively, which represents a decrease of approximately $0.4 million and $0.3 million from the prior year periods, respectively. The decrease was a result of the property in Lake Oswego, Oregon being sold on October 29, 2014.

~~Pursuant~~Recognized toand ~~the~~Unrealized ~~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.~~ gain/(loss)

~~THE~~The ~~PRUDENTIAL~~Partnership ~~INSURANCE~~sold ~~COMPANY~~the OFhotel ~~AMERICA~~property on October 29, 2014 and did not record a net unrealized or recognized gain/loss attributable to the General Partners’ controlling interest for the six and three month periods ended June 30, 2015, respectively, compared with an unrealized gain attributable to the General Partners’ controlling interest of approximately $0.3 million and less than $0.1 million unrealized loss for the prior year periods, respectively.

~~in respect of~~ Other

~~The~~Other ~~Prudential Variable~~net ~~Contract~~investment ~~Real~~expense ~~Property~~mainly ~~Account~~includes investment management fees, other portfolio level expenses and interest income. Other net investment expense attributable to the General Partners’ controlling interest was approximately $1.7 million and $0.8 million for the six and three month periods ended June 30, 2015, which remained relatively unchanged from the prior year periods.

~~(Registrant)~~ 34

Table of Contents

35(c) Inflation

A majority of the Partnership’s leases with 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 following sections discuss those critical accounting policies applied in preparing the unaudited financial statements of the Real Property Account and the unaudited consolidated financial statements of the Partnership that are most dependent on the application of estimates and assumptions.

Valuation of Investments

In general, fair value estimates are based upon property appraisal reports prepared by independent real estate appraisers (members of the Appraisal Institute or an equivalent organization) within a reasonable amount of time following acquisition of the real estate and no less frequently than annually thereafter. The Chief Real Estate Appraiser of Prudential Investment Management, Inc. (“PIM”), which is an indirectly owned subsidiary of Prudential Financial, Inc. is responsible for assuring that the valuation process provides independent and reasonable property fair value estimates. An unaffiliated third party has been appointed by PIM to assist the Chief Real Estate Appraiser in maintaining and monitoring the independence and the accuracy of the appraisal process. The fair value of real estate investments does not reflect the transaction sale costs, which may be incurred upon disposition of the real estate investments.

The purpose of an appraisal is to estimate the fair value of real estate as of a specific date. In accordance with Financial Accounting Standards Board (“FASB”) authoritative guidance on fair value measurements and disclosures, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The estimate of fair value is based on the conventional approaches to value, all of which require the exercise of subjective judgment. The three approaches are: (1) current cost of reproducing the real estate less deterioration and functional and economic obsolescence; (2) discounting a series of income streams and reversion at a specific yield or by directly capitalizing a single year period income estimate by an appropriate factor; and (3) value indicated by recent sales of comparable real estate in the market. Key inputs and assumptions include rental income and expense amounts, related rental income and expense growth rates, discount rates and capitalization rates. In the reconciliation of these three approaches, the independent appraiser uses one or a combination of them, to determine the approximate value for the type of real estate in the market.

Cash equivalents include short-term investments with maturities of three months or less when purchased.

Other Estimates

The preparation of financial statements in conformity with U.S. 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 of the Real Property Account and the unaudited consolidated financial statements of the Partnership and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Table of Contents

ITEM 3. Quantitative and Qualitative Disclosures about Market Risk

Interest Rate Risk – The General Partners’ controlling interest exposure to market rate risk for changes in interest rates relates to approximately 57.10% of its investment portfolio as of June 30, 2015, which consists primarily of short-term commercial paper and fixed and variable interest rate debt. The Partnership does not use derivative financial instruments. As a matter of policy, the Partnership places its investments with high quality debt security issuers, limits the amount of credit exposure to any one issuer, limits duration by restricting the term, and holds investments to maturity except under unusual circumstances.

The table below presents the amounts and related weighted interest rates of the Partnership’s cash and cash equivalents at June 30, 2015:



	Maturity	Estimated Market Value (millions)		Average Interest Rate
Cash and cash equivalents	0-3 months	$	31.5	0.05	%

The table below discloses the Partnership’s investment level debt as of June 30, 2015. The fair value of the Partnership’s long-term investment level debt is affected by changes in market interest rates. The following table presents principal cash flows based upon maturity dates of the debt obligations and the related weighted-average interest rates by expected maturity dates for the debt.



Investment level debt (in $ 000s), including current portion	2015			2016			2017			2018			2019			Thereafter			Total			Estimated Fair Value
Weighted Average Fixed Interest Rate	4.98		%	4.15		%	4.09		%	4.02		%	3.97		%	4.53		%	4.29		%
Future Annual Principal Payment	$	13,049		$	1,153		$	1,327		$	2,408		$	1,680		$	60,030		$	79,647		$	79,875

Credit Risk - 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, tenant delinquencies could increase and result in losses to the Partnership and the Real Property Account that could adversely affect its operating results and liquidity.

ITEM 4. Controls and Procedures

In order to ensure that the information we must disclose in our filings with the Securities and Exchange Commission is recorded, processed, summarized, and reported on a timely basis, the company’s management, including our Chief Executive Officer and Chief Financial Officer, have reviewed and evaluated the effectiveness of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e), as amended under the Securities Exchange Act of 1934 (“Exchange Act”), as of June 30, 2015. Based on such evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that, as of June 30, 2015, our disclosure controls and procedures were effective. No change in our internal control over financial reporting, as defined in Exchange Act Rules 13a-15(f) and 15d-15(f), occurred during the quarter ended June 30, 2015, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Table of Contents

PART II – OTHER INFORMATION

Item 1A. Risk Factors

You should carefully consider the risks described under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2014. These risks could materially affect our business, results of operations or financial condition, or cause our actual results to differ materially from those expected or those expressed in any forward looking statements made by or on behalf of the company. These risks are not exclusive, and additional risks to which we are subject include, but are not limited to, the factors mentioned under “Forward-Looking Statements” above and the risks of our business described elsewhere in this Quarterly Report on Form 10-Q.

Item 6. 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.

101.INS -XBRL Instance Document.

101.SCH -XBRL Taxonomy Extension Schema Document.

101.CAL -XBRL Taxonomy Extension Calculation Linkbase Document.

101.LAB -XBRL Taxonomy Extension Label Linkbase Document.

101.PRE -XBRL Taxonomy Extension Presentation Linkbase Document.

101.DEF-XBRL Taxonomy Extension Definition Linkbase Document.

Table of Contents

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.

THE PRUDENTIAL INSURANCE COMPANY OF AMERICA

in respect of

The Prudential Variable Contract Real Property Account

(Registrant)



Date: August 13, 2015	By:	/s/ Robert M. Falzon
	Robert M. Falzon
	Executive Vice President and Chief Financial Officer
	(Authorized Signatory and Principal Financial Officer)

Date: May 14, 2015

/s/ Robert M. Falzon

Robert M. Falzon

Executive Vice President and Chief Financial Officer

(Authorized Signatory and Principal Financial Officer)

Six Months Ended June 30,

Total Return