UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

~~FORM 10-K~~ ___________________________________________________________________

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

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

~~For~~(Mark ~~the fiscal year ended December 31, 2014~~ One)

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

¨For ~~TRANSITION~~the ~~REPORT~~fiscal ~~PURSUANT~~year TOended ~~SECTION~~December 31, 132015 ~~OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934~~

~~Commission file Number 033-20018~~ OR

~~PRUCO~~¨ ~~LIFE~~TRANSITION ~~INSURANCE~~REPORT ~~COMPANY~~PURSUANT TO SECTION 13 OR 15(d) OF ~~NEW~~THE ~~JERSEY~~SECURITIES EXCHANGE ACT OF 1934

inCommission ~~respect~~file ofNumber 033-20018

PRUCO LIFE ~~OF NEW~~INSURANCE ~~JERSEY~~COMPANY ~~VARIABLE~~OF ~~CONTRACT~~NEW ~~REAL PROPERTY ACCOUNT~~ JERSEY

~~(Exact name of registrant as specified~~ in ~~its~~respect ~~charter)~~ of

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

_______________________________________________________

~~213~~PRUCO ~~Washington~~LIFE ~~Street,~~OF ~~Newark,~~NEW ~~New~~JERSEY ~~Jersey~~VARIABLE ~~07102~~CONTRACT REAL PROPERTY ACCOUNT

(~~Address~~Exact name of ~~principal~~registrant ~~executive~~as ~~offices)~~specified ~~(Zip~~in ~~Code)~~its charter)

~~(973) 802-6000~~ ___________________________________________________________________

(Registrant’s telephone number, including area code)



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

~~SECURITIES~~213 ~~REGISTERED~~Washington ~~PURSUANT~~Street, TONewark, ~~SECTION~~New ~~12(b)~~Jersey ~~OF THE ACT: NONE~~ 07102

~~SECURITIES~~(Address ~~REGISTERED~~of ~~PURSUANT~~principal TOexecutive ~~SECTION~~offices) 12(g)Zip ~~OF THE ACT: NONE~~ Code)

~~Indicate~~(973) ~~by check mark if the registrant is a well~~802-~~known seasoned issuer, as defined in Rule 405 of the Securities Act. YES ¨ NO x~~ 6000

~~Indicate~~(Registrant’s bytelephone ~~check~~number, ~~mark~~including ifarea ~~the registrant is not required to file reports pursuant to Section 13 or Section 15(d~~code) ~~of the Act. YES ¨ NO x~~

~~Indicate~~SECURITIES byREGISTERED ~~check~~PURSUANT ~~mark~~TO ~~whether~~SECTION ~~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~~b), ~~and~~OF ~~(2) has~~THE ~~been~~ACT: ~~subject to such filing requirements for the past 75 days. YES x NO ¨~~ NONE

~~Indicate~~SECURITIES byREGISTERED ~~check~~PURSUANT ~~mark~~TO ~~whether~~SECTION ~~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~~ 12(~~§ 232.405 of this chapter~~g) ~~during~~OF ~~the~~THE ~~preceding~~ACT: ~~12 months (or for such shorter period that the registrant was required to submit and post such files). YES x NO ¨~~ NONE

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in part III of this Form 10-K or any amendment to this Form 10-K. x _______________________________________________________

Indicate by check mark ~~whether~~if the registrant is a ~~large~~ ~~accelerated filer, an accelerated filer, a non~~well-~~accelerated~~known ~~filer,~~seasoned ~~or a smaller reporting company. See definitions of “large accelerated filer~~issuer,” ~~“accelerated~~as ~~filer,”~~defined ~~and “smaller reporting company”~~ in Rule ~~12b-2~~405 of the ~~Exchange~~Securities Act ~~(check one)~~ . YES ¨ NO x

~~Large~~Indicate ~~Accelerated~~by ~~filer~~check ¨mark ~~Accelerated~~if ~~filer~~the ¨registrant ~~Non-accelerated~~is ~~filer~~not xrequired ~~Smaller~~to ~~reporting~~file ~~company~~reports pursuant to Section 13 or Section 15(d) of the Act. YES ¨ NO x

Indicate by check mark whether the registrant is(1) has afiled ~~shell~~all ~~company~~reports ~~(as~~required ~~defined~~to inbe ~~Rule~~filed ~~12b-2~~by Section 13 or 15(d) of ~~this~~ 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 x ¨

~~Table~~Indicate by 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 ~~Contents~~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 ¨

~~PRUCO~~Indicate ~~LIFE~~by OFcheck ~~NEW~~mark ~~JERSEY~~if ~~VARIABLE~~disclosure ~~CONTRACT~~of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in part III of this Form 10-K or any amendment to this Form 10-K. x

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

~~(Registrant)~~Large accelerated filer ¨ Accelerated filer ¨ Non-accelerated filer x Smaller reporting company ¨

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

Item No.		PageNo.
	Cover Page
	Index	2
	Forward-Looking Statement Disclosure	3
PART I
1.	Business	4
1A.	Risk Factors	6
1B.	Unresolved Staff Comments	12
2.	Properties	12
3.	Legal Proceedings	12
4.	Mine Safety Disclosures	12
PART II
5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	13
6.	Selected Financial Data	13
7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	14
7A.	Quantitative and Qualitative Disclosures About Market Risk	22
8.	Financial Statements and Supplementary Data	23
9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	23
9A.	Controls and Procedures	23
9B.	Other Information	23
PART III
10.	Directors, Executive Officers and Corporate Governance	24
11.	Executive Compensation	25
12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	25
13.	Certain Relationships and Related Transactions, and Director Independence	25
14.	Principal Accountant Fees and Services	25
PART IV
15.	Exhibits and Financial Statement Schedules	26
	Exhibit Index	26
	Signatures	28

Table of Contents

2PRUCO LIFE OF NEW JERSEY VARIABLE CONTRACT

~~Table~~REAL ofPROPERTY ~~Contents~~ACCOUNT

~~Forward-Looking Statement Disclosure~~ (Registrant)

Certain of the statements included in this Annual Report on Form 10-K, 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 Pruco Life Insurance Company of New Jersey, or the “Company”, or Pruco Life of New Jersey 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 this Annual Report on Form 10-K for discussion of certain risks relating to the operation of The Prudential Variable Contract Real Property Partnership or “Partnership” and investment in our securities. INDEX

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.



Item No.		Page No.
	Cover Page
	Index	2
	Forward-Looking Statement Disclosure	3
PART I
1.	Business	4
1A.	Risk Factors	5
1B.	Unresolved Staff Comments	11
2.	Properties	11
3.	Legal Proceedings	11
4.	Mine Safety Disclosures	11

PART II
5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	13
6.	Selected Financial Data	13
7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
7A.	Quantitative and Qualitative Disclosures About Market Risk	21
8.	Financial Statements and Supplementary Data	22
9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	22
9A.	Controls and Procedures	22
9B.	Other Information	22
PART III
10.	Directors, Executive Officers and Corporate Governance	24
11.	Executive Compensation	24
12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	24
13.	Certain Relationships and Related Transactions, and Director Independence	24
14.	Principal Accountant Fees and Services	24
PART IV
15.	Exhibits and Financial Statement Schedules	25
	Exhibit Index	25
	Signatures	27

3 2

Table of Contents

~~PART~~Forward-Looking 1Statement Disclosure

~~Item~~Certain of the statements included in this Annual Report on Form 10-K, 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 Pruco Life Insurance Company of New Jersey, or the “Company”, or Pruco Life of New Jersey 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 financial strength or credit ratings; (6) investment losses and defaults; (7) competition in our product lines and for personnel; (8) changes in tax law; (9) regulatory or legislative changes, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and the U.S. ~~Business~~Department of Labor's proposed fiduciary rules; (10) adverse determinations in litigation or regulatory matters and our exposure to contingent liabilities; (11) 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; (12) ineffectiveness of risk management policies and procedures in identifying, monitoring and managing risks; (13) changes in statutory or accounting principles generally accepted in the United States of America, or “U.S. GAAP”, practices or policies; and (14) 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 this Annual Report on Form 10-K for discussion of certain risks relating to the operation of The Prudential Variable Contract Real Property Partnership or “Partnership” and investment in our securities.

~~Pruco~~This ~~Life~~report ofincludes ~~New~~real ~~Jersey~~estate ~~Variable~~market ~~Contract~~data. ~~Real~~Market ~~Property~~data ~~Account~~is ~~(the~~subject ~~“Real~~to ~~Property~~change ~~Account”~~and orthere ~~the~~are ~~“Registrant”)~~limits ~~was established~~ on ~~October 30, 1987. Pursuant to New Jersey law,~~ the ~~Real~~availability ~~Property~~and ~~Account~~reliability ~~was established as a separate investment account~~ of ~~Pruco~~raw ~~Life~~data ~~Insurance~~and ~~Company~~other oflimitations ~~New~~and ~~Jersey~~uncertainties ~~(“Pruco~~inherent ~~Life of New Jersey” or the “Company”). The Real Property Account was established to provide a real estate investment option offered~~ in ~~connection~~any ~~with~~survey ~~the funding~~ of ~~benefits~~market ~~under certain variable life insurance and variable annuity contracts (the “Contracts”) issued by Pruco Life of New Jersey~~data.

The assets of the Real Property Account are invested in The Prudential Variable Contract Real Property Partnership (the “Partnership”). The Partnership, a general partnership organized under New Jersey law on April 29, 1988, was formed through an agreement among The Prudential Insurance Company of America (“Prudential”), Pruco Life Insurance Company and Pruco Life of New Jersey (collectively known as the “General Partners”) to provide a means for assets allocated to the real estate investment option under certain variable life insurance and variable annuity contracts issued by the respective companies to be invested in a commingled pool. 3

~~The~~Table ~~Partnership has an investment policy~~ of investing at least 65% of its assets in direct ownership interests in income-producing real estate and participating mortgage loans. The largest portion of these real estate investments are direct ownership interests in income-producing real estate, such as office buildings, shopping centers, hotels, apartments, or industrial properties. Approximately 10% of the Partnership’s assets are generally held in cash or invested in liquid instruments and securities although the General Partners reserve discretion to increase this amount to meet partnership liquidity requirements. Contents

~~Office~~Throughout ~~Properties~~this –Annual ~~The~~Report ~~Partnership~~on ~~owns~~Form ~~office~~10-K ~~properties~~the in"Real ~~Lisle,~~Property ~~Illinois~~Account" and ~~Beaverton,~~the ~~Oregon.~~"Registrant" ~~Total~~refer ~~square~~to ~~footage owned~~Pruco isLife ~~approximately~~of ~~164,318,~~New Jersey Variable Contract Real Property Account. "Pruco Life of ~~which~~New ~~65%,~~Jersey" or ~~107,517~~the ~~square~~"Company" ~~feet,~~refers ~~are~~to ~~leased~~Pruco ~~between~~Life 1Insurance ~~and~~Company 5of ~~years.~~New Jersey.

~~Apartment Complexes~~PART – The Partnership owns apartment properties in Austin, Texas; Charlotte, North Carolina; and Seattle, Washington, comprising a total of 515 apartment units, of which 94%, or 482 units, are leased. Leases range from month-to-month to eighteen months. I

Retail Properties – The Partnership owns retail properties in Dunn, North Carolina; Hampton, Virginia; Norcross, Georgia Ocean City, Maryland; Roswell, Georgia; and Westminster, Maryland. Total square footage owned is approximately 839,159 of which 85%, or 710,787 square feet, are leased between Item 1 ~~and 17 years~~. Business

~~Investment~~Pruco inLife ~~Real~~of ~~Estate~~New ~~Investment~~Jersey ~~Trust~~Variable Contract Real Property Account (the “~~REIT~~Real Property Account” or the “Registrant”) –was established on October 30, 1987. Pursuant to New Jersey law, the Real Property Account was established as a separate investment account of Pruco Life Insurance Company of New Jersey (“Pruco Life of New Jersey” or the “Company”). The ~~Partnership~~Real ~~liquidated~~Property ~~its~~Account ~~entire~~was established to provide a real estate investment inoption ~~REIT shares~~offered in ~~December~~connection ~~2001~~with the funding of benefits under certain variable life insurance and ~~its~~variable ~~preferred~~annuity ~~equity~~contracts ~~investment~~(the in“Contracts”) aissued ~~REIT~~by inPruco ~~March~~Life ~~2012.~~of New Jersey.

The ~~Partnership’s~~assets ~~investments~~of ~~are maintained so as to meet~~ the ~~diversification~~Real ~~requirements~~Property ~~set~~Account ~~forth~~are invested in ~~treasury~~The ~~regulations~~Prudential ~~issued~~Variable ~~pursuant~~Contract toReal ~~Section 817(h)~~Property ofPartnership (the ~~Internal~~“Partnership”). ~~Revenue~~The ~~Code~~Partnership, ~~relating~~a togeneral ~~the~~partnership ~~investments~~organized ofunder ~~variable~~New ~~life~~Jersey ~~insurance~~law ~~and~~on ~~variable annuity separate accounts. Section~~April ~~817(h) requires~~29, ~~among other things~~1988, ~~that~~was ~~the~~formed ~~partnership~~through ~~will~~an ~~have~~agreement noamong ~~more~~The ~~than~~Prudential ~~55%~~Insurance ofCompany ~~the assets invested in any one investment, no more than 70%~~ of ~~the~~America ~~assets will be invested in any two investments~~(“Prudential”), noPruco ~~more~~Life ~~than~~Insurance ~~80%~~Company ~~of the assets will be invested in any three investments,~~ and noPruco ~~more~~Life ~~than 90%~~ of ~~the~~New ~~assets~~Jersey ~~will~~(collectively beknown ~~invested~~as inthe ~~any~~“General ~~four~~Partners”) ~~investments.~~to Toprovide ~~comply~~a ~~with~~means ~~regulatory~~for ~~requirements~~assets ofallocated ~~the~~to ~~State of Arizona,~~ the ~~Partnership~~real ~~will~~estate ~~limit~~investment ~~additional~~option ~~investments~~under incertain ~~any~~variable ~~one parcel~~life orinsurance ~~related~~and ~~parcels~~variable toannuity ancontracts ~~amount~~issued ~~not~~by ~~exceeding 10% of~~ the ~~Partnership’s~~respective ~~gross~~companies ~~assets~~to asbe ofinvested ~~the~~in ~~prior~~a ~~fiscal~~commingled ~~year~~pool.

~~For information~~The ~~regarding~~Partnership ~~the~~has ~~Partnership’s~~an investment policy of investing at least 65% of its assets in direct ownership interests in income-producing real estate and participating mortgage loans. The largest portion of these real estate investments, ~~operations~~are direct ownership interests in income-producing real estate, ~~and~~such ~~other~~as ~~significant~~office ~~events~~buildings, ~~see~~shopping ~~Item 7~~centers, ~~Management~~hotels, apartments, or industrial properties. Approximately 10% of the Partnership’s ~~Discussion~~assets ~~and~~are ~~Analysis~~generally ofheld ~~Financial~~in ~~Condition~~cash ~~and~~or ~~Results~~invested ofin ~~Operations~~liquid instruments and ~~Financial~~securities ~~Statements~~although ~~and Supplementary~~the ~~Data~~General Partners reserve discretion to increase this amount to meet partnership liquidity requirements.

~~The~~Office ~~following~~Properties is- aThe ~~description~~Partnership ofowns ~~general~~an ~~conditions~~office property in ~~the~~Lisle, UIllinois.S. ~~real~~Total ~~estate~~square ~~markets.~~footage Itowned ~~does~~is ~~not~~approximately ~~relate to specific properties held by the Partnership. The Partnership does not have widely diversified holdings; therefore~~92,209, ~~the discussions~~ of ~~vacancy~~which ~~rates~~38%, ~~property~~or ~~values~~35,408 ~~and~~square ~~returns~~feet, ~~in this section~~ are ~~not~~leased ~~necessarily~~between ~~relevant~~1 toand ~~the~~5 ~~Partnership’s portfolio~~years. ~~These~~ ~~results are not indicative of future performance.~~

4Apartment Complexes - The Partnership owns apartment properties in Austin, Texas; Charlotte, North Carolina; Maplewood, New Jersey; and Seattle, Washington, comprising a total of 565 apartment units, of which 93%, or 525 units, are leased. Leases range from month-to-month to eighteen months. In addition, the Partnership owns an apartment development in Chicago, Illinois, that once completed will total 60 units.

~~Table~~Retail Properties - The Partnership owns retail properties in Dunn, North Carolina; Hampton, Virginia; Norcross, Georgia; Ocean City, Maryland; Roswell, Georgia; North Fort Myers, Florida; and Westminster, Maryland. Total square footage owned is approximately 839,159 of ~~Contents~~which 84%, or 703,837 square feet, are leased between 1 and 17 years.

~~Market~~Investment ~~Conditions~~in Real Estate Trust - The Partnership liquidated its entire investment in REIT shares in December 2001 and its preferred equity investment in a REIT in March 2012.

The ~~U.S.~~Partnership’s ~~economy~~investments ~~significantly~~are ~~improved~~maintained inso ~~2014,~~as ~~which~~to ~~supported~~meet ~~solid~~the ~~gains~~diversification inrequirements ~~real~~set ~~estate~~forth ~~fundamentals.~~in ~~GDP~~treasury ~~grew~~regulations atissued anpursuant ~~annualized~~to ~~rate~~Section 817(h) of ~~5% in~~ the ~~third~~Internal ~~quarter~~Revenue ofCode ~~2014~~relating ~~according~~ to the ~~Bureau~~investments of ~~Economic~~variable ~~Analysis~~life insurance and variable annuity separate accounts. Section 817(h) requires, anamong ~~agency~~other ofthings, that the USpartnership ~~Department~~will have no more than 55% of ~~Commerce~~the ~~that~~assets ~~provides~~invested ~~economic~~in ~~statistics.~~any ~~This~~one ~~marked~~investment, ~~the~~no ~~strongest~~more ~~annualized~~than ~~rate~~70% of ~~economic~~the ~~growth~~assets ~~since~~will be invested in any two investments, no more than 80% of the ~~third~~assets ~~quarter~~will be invested in any three investments, and no more than 90% of ~~2003~~the assets will be invested in any four investments. At To comply with regulatory requirements of the ~~same~~State ~~time~~of Arizona, the ~~U.S.~~Partnership ~~labor~~will ~~market~~limit ~~improved.~~additional ~~Employment~~investments ~~expanded~~in byany ~~2.1%~~one inparcel ~~2014,~~or uprelated ~~from~~parcels ~~1.7~~to an amount not exceeding 10% inof ~~2013~~the Partnership’s gross assets as of the prior fiscal year.

~~Debt~~For ~~Markets~~information regarding the Partnership’s investments, operations, and other significant events, see Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations and Financial Statements and Supplementary Data.

The ~~lending~~following ~~market~~is ~~remained~~a ~~favorable~~description ~~for~~of ~~borrowers~~general conditions in ~~2014.~~the ~~The~~ U.S. ~~10-year~~real ~~Treasury~~estate ~~rate~~markets. ~~fell~~It bydoes ~~approximately~~not 70relate ~~basis~~to ~~points~~specific ~~during~~properties ~~2014. Issuance~~held ofby ~~mortgage-backed~~the ~~securities~~Partnership. ~~increased~~The byPartnership 9%does tonot ~~$94~~have ~~billion~~widely indiversified ~~2014~~holdings; ~~from~~therefore, ~~$86~~the ~~billion~~discussions inof ~~the~~vacancy ~~previous year~~rates, ~~according~~property tovalues ~~Commercial~~and ~~Mortgage~~returns ~~Alert,~~in athis ~~leading~~section ~~trade~~are ~~publication~~not ~~that~~necessarily ~~tracks~~relevant to the ~~commercial~~Partnership’s ~~mortgage market~~portfolio. InThese ~~addition, originations~~results ofare ~~commercial~~not ~~and~~indicative ~~multifamily~~of ~~lending~~future ~~was~~performance upand ~~16%~~not ~~year-over-year~~necessarily inindicative of the ~~third~~performance ~~quarter~~ of ~~2014 per data from~~ the ~~Mortgage Bankers Association~~Partnership.

~~REIT~~ Market Conditions

The USU.S. ~~REIT market~~economy ~~recorded~~remained ~~sizeable~~on ~~gains~~a insteady ~~2014.~~path ~~The~~of ~~FTSE~~growth ~~NAREIT~~in ~~Equity REIT Index~~2015, which ~~tracks~~supported ~~the~~continued ~~performance~~improvement ofin USreal ~~equity~~estate ~~REITs~~fundamentals. ~~and~~Real isGDP ~~published~~expanded ~~jointly~~at byan ~~the~~average ~~FTSE~~annual ~~Group~~pace ~~and the National Association~~ of ~~Real~~2.2% ~~Estate~~in ~~Investment~~the ~~Trusts,~~first ~~showed~~three aquarters ~~return~~ of ~~28%~~ inthe ~~2014~~year, ~~compared~~close to the 2.94% inrate ~~2013. Fund inflows to REIT mutual funds and exchange traded funds totaled approximately $18.1 billion~~ in 2014, ~~bringing~~according to the ~~total~~U.S. ~~assets~~Bureau ~~under~~of ~~management~~Economic ~~to $237~~Analysis.3 ~~billion~~The ~~according~~U.S. tolabor ~~Citi~~market ~~Research,~~also ~~the~~strengthened ~~internal research~~with ~~division~~total ofemployment ~~Citigroup.~~

~~Property Markets~~ 4

~~Real~~Table ~~estate demand continued to expand across property types, which reduced vacancies in all sectors. Apartment market vacancies ended 2014 lower than in the previous year despite the significant amount~~ of development activity, according to Axiometrics, a multifamily data provider. Inventory growth remained below the 15-year historical average for the office, retail, and industrial markets, aiding in the vacancy recovery in these sectors according to data from real estate research firms CoStar Portfolio Strategy and CBRE Econometric Advisors. Operating performance rose among all property segments. Improvements in real estate fundamentals supported a value increase of 10% per the Green Street Advisors’ Property Price Index. Price indices for major property types are now above 2007 peak levels. Contents

~~Apartment:~~expanding ~~The~~by ~~national apartment vacancy rate ended 2014 at 5.~~1.9%, ~~down~~and 40the ~~basis~~unemployment ~~points~~rate ~~from~~declining ~~2013 according~~ to ~~Axiometrics~~a ~~data. Absorption~~post-recessionary ~~continued~~low, toas ~~exceed~~reported ~~net~~by ~~completions despite~~ the ~~inventory growth~~U.S. InBureau ~~addition,~~of ~~the~~Labor ~~average apartment effective rental rate expanded by 4~~Statistics.~~7%.~~

~~Retail:~~Property ~~Demand grew while completions remained below historical trends according to CoStar Portfolio Strategy. As a result, vacancies fell by approximately 50 basis points.~~ Markets

~~Office:~~Real ~~National~~estate ~~office~~demand ~~vacancies~~continued ~~fell~~to byexpand aacross ~~full~~property ~~percentage~~types. ~~point~~Apartment inmarket ~~2014 to~~vacancies ~~their~~ended ~~lowest~~2015 ~~levels~~slightly ~~since~~lower ~~2007~~than ~~according~~in tothe ~~data~~previous ~~from~~year, ~~CBRE~~despite ~~Econometric~~the ~~Advisors~~significant amount of development activity. Inventory growth ~~amounted~~remained toat ~~0.6%,~~or ~~which was~~ below ~~its~~the 15-year historical ~~annual~~averages ~~average~~for ~~rate~~the office, retail, and industrial markets, aiding in the vacancy recovery in these sectors. As a result, operating performance rose among all property segments and valuations strengthened.

~~Industrial~~Apartment: National ~~warehouse~~apartment ~~demand~~vacancies ~~expanded~~continued byto ~~1.1%~~improve in ~~2014~~2015, ~~according~~owing to ~~CoStar~~continued ~~Portfolio~~strong ~~Strategy.~~demographic ~~Deliveries of new industrial product increased but remained below historical~~ trends~~, reducing vacancies by 60 basis points~~. ~~Improving~~This ~~fundamentals~~strength ~~allowed~~contributed ~~for~~to rapid rent growth ofacross ~~4.3%, consistent with~~ the ~~2013 level~~nation.

~~Hotel~~Retail: ~~Hotel occupancies rose by 2~~U.3S. ~~percentage~~retail ~~points~~market ~~year-over-year~~fundamentals ascontinued ofto ~~the~~improve ~~third~~in ~~quarter~~2015 ofover 2014. ~~and~~Stronger ~~are~~consumption attrends ~~their~~pushed ~~highest levels~~up ~~since~~tenant ~~1997~~demand, ~~according~~while tonew ~~CoStar~~supply ~~Portfolio~~remains ~~Strategy~~limited. ~~Strong~~As ~~occupancies~~a ~~supported~~result, anvacancies ~~increase~~fell ~~in revenue per available room amounting~~ to ~~10.1%~~their ~~over~~lowest ~~the~~levels ~~same~~on ~~time period~~record.

5Office: The office market recovery continued to gain momentum in 2015. Accelerating office-using employment growth continues to generate stronger take-up of office space. At the same time, inventory growth remained below its 15-year historical annual average rate. As a result, vacancies tightened further, and rent growth accelerated from 2014 levels.

~~Table~~Industrial: ofNational ~~Contents~~industrial absorption outpaced completions. Vacancies are generally at their lowest levels since 1999. Healthy fundamentals boosted rent growth to a post-recessionary highs in 2015.

~~Item~~Hotel: 1AThe hotel market continued to improve in 2015. ~~Risk~~Strong ~~Factors~~occupancies supported a substantial increase in revenue per available room in 2015, though this marked a moderation in growth from the previous year.

~~You should carefully consider the following risks~~Item 1A. ~~These~~Risk 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 Annual Report on Form 10-K. Many of these risks are interrelated and could occur under similar business and economic conditions, and the occurrence of certain of them may in turn cause the emergence or exacerbate the effect of others. Such a combination could materially increase the severity of the impact of these risks on our businesses, results of operations, financial condition and liquidity. Throughout this section “we” and “our” refer to the Company. Factors

~~Market~~You ~~fluctuations~~should carefully consider the following risks. These risks are not exclusive, and ~~general~~additional ~~economic~~risks to which we are subject include, ~~market~~but are not limited to, the factors mentioned under “Forward-Looking Statements” above and ~~political~~the risks of our business described elsewhere in this Annual Report on Form 10-K. Many of these risks are interrelated and could occur under similar business and economic conditions, and the occurrence of certain of them may ~~adversely~~in ~~affect~~turn cause the emergence, or exacerbate the effect of, others. Such a combination could materially increase the severity of the impact of these risks on our ~~business~~businesses, results of operations, financial condition and ~~profitability~~liquidity. Throughout this section “we” and “our” refer to the Company.

~~Our~~Market ~~business~~fluctuations and ~~our~~general ~~results~~economic, ofmarket ~~operations~~and ~~may~~political beconditions ~~materially~~may adversely ~~affected~~affect byour ~~conditions~~business ~~in the global financial markets~~ and ~~by economic conditions generally~~profitability.

~~Even~~Our ~~under~~business ~~relatively favorable market conditions, our insurance~~ and ~~annuity products, as well as~~ our ~~investment returns~~results ~~and our access to and cost~~ of ~~financing,~~operations ~~are~~may ~~sensitive~~be tomaterially ~~fixed~~adversely ~~income,~~affected ~~equity,~~by ~~real~~conditions ~~estate~~in ~~and~~the ~~other~~global ~~market~~financial ~~fluctuations~~markets and ~~general~~by economic, ~~market and political~~ conditions. ~~These fluctuations and conditions could adversely affect our results of operations, financial position and liquidity, including in the following respects:~~ generally.

•Even ~~The~~under ~~profitability~~relatively offavorable ~~many~~market ofconditions, our insurance and ~~annuities~~annuity products, ~~depends~~as inwell ~~part~~as onour ~~the~~investment ~~value~~returns and our access to and cost of ~~the~~financing, ~~separate~~are ~~accounts~~sensitive ~~supporting~~to ~~these~~fixed ~~products~~income, ~~which~~equity, ~~can~~real ~~fluctuate~~estate ~~substantially~~and ~~depending~~other onmarket ~~the~~fluctuations ~~foregoing~~and general economic, market and political conditions. These fluctuations and conditions could adversely affect our results of operations, financial position and liquidity, including in the following respects:

• AThe ~~change~~profitability inof ~~market~~many ~~conditions, such as high inflation and high interest rates, could cause a change in consumer sentiment and behavior adversely affecting sales and persistency~~ of our ~~savings~~insurance and ~~protection~~annuities products. ~~Conversely,~~depends ~~low~~in ~~inflation~~part ~~and~~on ~~low~~the ~~interest~~value ~~rates~~of ~~could~~the ~~cause~~separate ~~persistency~~accounts ofsupporting these products ~~to vary from that anticipated and adversely affect profitability (as further described below). Similarly~~, ~~changing~~which ~~economic conditions and unfavorable public perception of financial institutions~~ can ~~influence~~fluctuate ~~customer~~substantially ~~behavior,~~depending ~~including~~on ~~increasing~~the ~~claims~~foregoing ~~or surrenders in certain product lines~~conditions.

~~Adverse~~• ~~capital~~A change in market conditions, such as high inflation and high interest rates, could ~~significantly~~cause ~~affect~~a change in consumer sentiment and behavior adversely affecting sales and persistency of our ~~ability~~savings toand ~~meet~~protection ~~liquidity~~products. ~~needs~~Conversely, ~~our~~low ~~access~~inflation and low interest rates could cause persistency of these products to ~~capital~~vary from that anticipated and ~~our~~adversely ~~cost~~affect ~~of capital~~profitability (as further described below). ~~Under~~Similarly, ~~such~~changing economic conditions, weand ~~may~~unfavorable ~~seek~~public ~~additional~~perception ~~debt~~of orfinancial ~~equity~~institutions ~~capital~~can ~~but~~influence ~~may~~customer bebehavior, ~~unable~~including toincreasing ~~obtain~~claims ~~it.~~or surrenders in certain product lines.

Adverse capital market conditions could significantly affect ~~the availability and cost of borrowed funds and could impact~~ our ability to ~~refinance~~meet ~~existing~~liquidity ~~borrowings~~needs, ~~thereby ultimately impacting~~ our ~~profitability~~access ~~and ability~~ to ~~support~~capital orand ~~grow~~ our ~~businesses.~~cost Weof ~~need~~capital. ~~liquidity~~Under tosuch ~~pay our operating expenses~~conditions, ~~interest,~~we ~~and~~may ~~maturities~~seek onadditional ~~our~~ debt ~~and~~or ~~dividends~~equity ~~on our~~ capital ~~stock.~~but ~~The~~may ~~principal~~be ~~sources~~unable ofto ~~our~~obtain ~~liquidity are insurance premiums, annuity considerations, cash flow from our investment portfolio, and fees from separate account assets~~it.

InAdverse ~~the~~capital ~~normal~~market ~~course of business, the Partnership enters into loan agreements with certain lenders to finance its real estate investment transactions. Unfavorable economic~~ conditions could ~~increase~~affect ~~related borrowing costs, limit access to~~ the ~~capital~~availability ~~markets~~and orcost ~~result~~of inborrowed afunds ~~decision~~and bycould ~~lenders~~impact ~~not~~our toability ~~extend credit~~ to ~~the~~refinance ~~Partnership.~~existing ~~There~~borrowings, isthereby noultimately ~~guarantee~~impacting ~~that~~our ~~the Partnership’s~~profitability ~~borrowing~~and ~~arrangements or~~ ability to ~~obtain~~support ~~leverage will continue to be available,~~ or ifgrow ~~available,~~our ~~will~~businesses. beWe ~~available~~need onliquidity ~~terms and conditions acceptable~~ to ~~the~~pay ~~Partnership.~~our ~~Further,~~operating ~~these loan agreements contain~~expenses, ~~among other conditions~~interest, ~~events~~and ofmaturities ~~default~~on ~~and~~our ~~various~~debt ~~covenants~~ and ~~representations.~~dividends Inon ~~the~~our ~~normal~~capital ~~course~~stock. ofThe ~~business,~~principal ~~the~~sources ~~Partnership may be in the process~~ of ~~renegotiating~~our ~~terms for loans outstanding that have passed their maturity dates. At December 31, 2014, the Partnership had no outstanding matured loans.~~

A 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. 5

InTable the event the Partnership’s current investment obligations are not refinanced or extended when they become due and/or the Partnership is required to repay such borrowings and obligation, management anticipates that the repayment of ~~these obligations will be provided by operating cash flow, new debt refinancing, and real estate investment sales.~~ Contents

6liquidity are insurance premiums, annuity considerations, cash flow from our investment portfolio, and fees from separate account assets.

~~Table~~In the normal course of ~~Contents~~business, 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 December 31, 2015, the Partnership had no outstanding matured loans.

~~The~~A ~~companies~~decline ~~offering~~in market value of the ~~Contracts~~Partnership’s ~~and~~assets may also have particular adverse consequences in instances where the Partnership ~~are~~borrowed ~~heavily~~money ~~regulated~~based ~~and~~on ~~changes~~the fair value of specific assets. A decrease in ~~regulation~~ market value of these assets may ~~reduce~~result ~~our~~in ~~profitability.~~the lender requiring the Partnership to post additional collateral or otherwise repay these loans.

~~Our~~In ~~business~~the isevent ~~subject to comprehensive regulation and supervision. The purpose of this regulation is primarily to protect our customers. Many of~~ the ~~laws~~Partnership’s ~~and~~current ~~regulations~~investment toobligations ~~which we~~ are ~~subject~~not ~~are~~refinanced ~~regularly re-examined, and existing~~ or ~~future~~extended ~~laws~~when ~~and~~they ~~regulations may~~ become ~~more~~due ~~restrictive~~ and/or ~~otherwise~~the ~~adversely~~Partnership ~~affect~~is ~~our operations.~~required ~~The~~to ~~financial~~repay ~~market~~such ~~dislocations~~borrowings weand ~~have experienced have produced~~obligation, ~~and~~management ~~are~~anticipates ~~expected~~that tothe ~~continue~~repayment toof ~~produce,~~these ~~extensive~~obligations ~~changes~~will inbe ~~existing~~provided ~~laws~~by ~~and~~operating ~~regulations~~cash flow, ~~and~~new ~~regulatory~~debt ~~frameworks~~refinancing, ~~applicable~~and toreal ~~our~~estate ~~business.~~investment sales.

The ~~Company~~companies isoffering ~~subject to~~ the ~~rules~~Contracts and ~~regulations of~~ the ~~Securities~~Partnership ~~and~~are ~~Exchange~~heavily ~~Commission~~regulated ~~relating to public reporting~~ and ~~disclosure, accounting~~changes ~~and~~in ~~financial~~regulation ~~reporting,~~may ~~and~~adversely ~~corporate~~affect ~~governance~~our ~~matters.~~results ~~The Sarbanes-Oxley Act~~ of ~~2002~~operations and rules and regulations adopted in furtherance of that Act have substantially increased the requirements in these and other areas for the Company and certain of its affiliates. Our internal controls over financial ~~reporting may have gaps or other deficiencies and there is no assurance that significant deficiencies or material weaknesses in internal controls may not occur in the future~~condition. ~~Any such gaps or deficiencies may require significant resources to remediate and may also expose the Company to litigation, regulatory fines or penalties or other losses.~~

~~Many~~Our ~~insurance~~business ~~regulatory~~is ~~and~~subject ~~other~~to ~~governmental~~comprehensive orregulation ~~self-regulatory~~and ~~bodies~~supervision. ~~have~~The ~~the~~purpose ~~authority~~of tothis ~~review~~regulation ~~our~~is ~~products~~primarily ~~and~~to ~~business~~protect ~~practices and~~our ~~those~~customers. Many of ~~our~~the ~~agents~~laws and ~~employees~~regulations ~~and~~ to ~~bring~~which ~~regulatory~~we orare ~~other~~subject ~~legal~~are ~~actions~~regularly ~~against us if~~re-examined, inand ~~their~~existing ~~view,~~or ~~our~~future ~~practices,~~laws orand ~~those~~regulations ofmay ~~our~~become ~~agents~~more restrictive or ~~employees,~~otherwise ~~are~~adversely ~~improper~~affect our operations. ~~These~~The ~~actions~~financial ~~can~~market ~~result~~dislocations inwe ~~substantial~~have ~~fines~~experienced have produced, ~~penalties~~and ~~or prohibitions~~are orexpected ~~restrictions~~to oncontinue ~~our~~to ~~business~~produce, ~~activities~~extensive ~~and~~changes ~~could~~in ~~adversely~~existing ~~affect~~laws ~~our~~and ~~business~~regulations, ~~reputation,~~and ~~results~~regulatory offrameworks, ~~operations~~applicable orto ~~financial~~our ~~condition~~business.

~~Insurance~~Compliance ~~regulators~~with ~~continue~~applicable tolaws ~~develop~~and aregulations ~~principles~~is ~~based~~time ~~reserving~~consuming ~~approach~~and ~~for~~personnel-intensive, ~~life~~and ~~insurance~~changes ~~products.~~in ~~The~~these ~~timing~~laws and ~~the~~regulations ~~effect~~may materially increase our direct and indirect compliance and other expenses of ~~these changes~~doing ~~are~~business, ~~still~~thus ~~uncertain.~~having a material adverse effect on our financial condition or results of operations.

~~Compliance~~The ~~with~~Dodd-Frank ~~applicable~~Wall ~~laws~~Street Reform and ~~regulations~~Consumer isProtection ~~time~~Act ~~consuming~~(“Dodd ~~and~~Frank”) ~~personnel-intensive,~~subjects ~~and~~the ~~changes~~Company, ~~in these~~its ~~laws~~parent and ~~regulations~~its ~~may~~affiliates ~~materially~~to ~~increase~~substantial ~~our~~additional ~~direct~~federal regulation and ~~indirect~~we ~~compliance~~cannot ~~and~~predict ~~other~~the ~~expenses~~effect ofon ~~doing~~our business, ~~thus~~results ~~having~~of aoperations, ~~material~~cash ~~adverse~~flows ~~effect~~or ~~on our~~ financial condition ~~or results of operations~~.

~~The~~In ~~Dodd-Frank~~2013, ~~Wall~~the ~~Street~~Financial ~~Reform~~Stability ~~and~~Oversight ~~Consumer~~Council ~~Protection~~(the ~~Act~~“Council”) made a final determination that Prudential Financial, Inc. (“~~Dodd~~Prudential ~~Frank~~Financial”), ~~subjects~~the ultimate parent of the Company, ~~its~~should ~~parent~~be subject to stricter prudential regulatory standards and ~~its~~supervision ~~affiliates~~ by the Board of Governors of the Federal Reserve Board (“FRB”) as a “Designated Financial Company” pursuant to ~~substantial~~Dodd-Frank, ~~additional~~thereby subjecting us to substantial federal regulation, much of it pursuant to regulations not yet promulgated. Dodd-Frank directs existing and wenewly-created government agencies and bodies to promulgate regulations implementing the law, a process that is underway and expected to continue over the next few years. We cannot predict the ~~effect~~timing onor requirements of the regulations not yet adopted under Dodd-Frank or how such regulations will impact our business, Prudential Financial’s credit ratings or the Company’s financial strength ratings, results of operations, cash flows, or financial condition or competitive position. Furthermore, we cannot predict whether such regulations will make it advisable or how regulators will advise or require us to hold or raise additional capital or liquid assets, potentially affecting capital deployment activities, including buying back shares or paying dividends. Key aspects of Dodd-Frank’s impact on us include:

On• ~~September 19,~~As ~~2013~~a Designated Financial Company, ~~the~~Prudential Financial ~~Stability~~is ~~Oversight~~now ~~Council~~subject ~~(the~~to ~~“Council”)~~supervision ~~made~~and aexamination ~~final~~by ~~determination~~the ~~that~~FRB ~~Prudential Financial~~and to stricter prudential standards, ~~Inc.~~which include or will include requirements and limitations (~~“Prudential~~many ~~Financial”~~of which are the subject of ongoing rule-making) relating to capital, ~~the~~leverage, ~~ultimate~~liquidity, ~~parent~~stress-testing, ofoverall ~~the~~risk ~~Company~~management, ~~should~~credit beexposure ~~subject~~reporting, toearly ~~stricter~~remediation, ~~prudential~~managing ~~regulatory~~interlocks, ~~standards~~credit concentration and ~~supervision~~resolution, byand ~~the~~recovery ~~Board~~planning. ofIf ~~Governors~~the ofFRB and the Federal ~~Reserve~~Deposit ~~Board~~Insurance Corporation (“~~FRB~~FDIC”) asjointly ~~a “Designated~~determine that Prudential Financial’s ~~Company”~~resolution ~~pursuant~~plan tois ~~Dodd-Frank~~deficient, ~~thereby~~they ~~subjecting~~may usimpose tomore ~~substantial~~stringent ~~federal~~capital, ~~regulation~~leverage, ~~much~~or ofliquidity itrequirements, ~~pursuant~~or torestrictions ~~regulations~~on ~~not~~our ~~yet~~growth, ~~promulgated.~~activities, ~~Dodd-Frank~~or ~~directs~~operations. ~~existing~~Any ~~and~~continuing ~~newly-created~~failure ~~government agencies and bodies~~ to ~~promulgate~~adequately ~~regulations~~remedy ~~implementing~~ the ~~law,~~deficiencies acould ~~process~~result ~~that~~in isthe ~~underway~~FRB and ~~expected to continue over~~ the ~~next~~FDIC ~~few~~jointly, ~~years.~~in Weconsultation ~~cannot predict~~ with ~~any~~the ~~certainty~~Council, ~~the~~ordering ~~requirements~~divestiture of ~~the~~certain ~~regulations~~operations ~~recently~~ or ~~not~~assets. ~~yet~~In ~~adopted~~addition, orfailure ~~how Dodd-Frank~~to ~~and~~meet ~~such~~defined ~~regulations~~measures ~~will~~of ~~affect~~financial ~~the~~condition ~~financial~~could ~~markets~~result ~~generally,~~in ~~impact~~substantial ~~our~~restrictions ~~business,~~on Prudential Financial’s ~~credit~~business ~~ratings~~and orcapital ~~the~~distributions. ~~Company’s~~Prudential ~~financial~~Financial ~~strength~~is ~~ratings,~~now ~~results~~also ofsubject ~~operations,~~to ~~cash~~stress ~~flows~~tests orto ~~financial~~be ~~condition or~~promulgated ~~advise~~by orthe ~~require~~FRB uswhich tocould ~~hold~~cause orPrudential ~~raise~~Financial ~~additional~~to ~~capital~~alter orour ~~liquid~~business ~~assets.~~practices ~~Key~~or ~~aspects~~affect ofthe ~~Dodd-Frank’s~~perceptions ~~impact~~of onregulators, usrating ~~include:~~ agencies,

• As a Designated Financial Company, Prudential Financial is now subject to supervision by the FRB and examination by the Federal Reserve Bank of Boston and to stricter prudential standards, which include or will include requirements and limitations (some of which are the subject of ongoing rule-making) relating to risk-based capital, leverage, liquidity, risk management, and credit concentration, and a requirement to prepare and submit an annual plan for rapid and orderly resolution in the event of severe financial distress. If the FRB and the Federal Deposit Insurance Corporation (“FDIC”) jointly determine that Prudential Financial’s plan is deficient, they may impose more stringent capital, leverage, or liquidity requirements, or restrictions on our growth, activities, or operations. Continuing failure to adequately remedy the deficiencies could result in the FRB and the FDIC jointly, in consultation with the Council, ordering divestiture of certain operations or assets to facilitate Prudential Financial’s orderly resolution. In addition, failure to meet defined measures of financial condition could result in substantial restrictions on Prudential Financial’s business and capital distributions. Prudential Financial is now also subject to stress tests to be promulgated by the FRB which could cause Prudential Financial to alter our business practices or affect the perceptions of regulators, rating agencies, customers, counterparties or investors of our financial strength. We cannot predict the requirements of the regulations not yet adopted or how the FRB will apply these prudential standards to Prudential Financial as a Designated Financial Company. As a Designated Financial Company, Prudential Financial must also seek pre-approval from the FRB for acquisition of certain companies engaged in financial activities.6

•Table ~~As a Designated Financial Company, Prudential Financial could also be subject to additional capital requirements for, and other restrictions on, proprietary trading and sponsorship~~ of, ~~and investment in, hedge, private equity and other covered funds.~~Contents

7customers, counterparties or investors of our financial strength. We cannot predict the requirements of the regulations not yet adopted or how the FRB will apply these prudential standards to Prudential Financial. As a Designated Financial Company, Prudential Financial must also seek pre-approval from the FRB for acquisition of certain companies engaged in financial activities.

~~Table~~• As a Designated Financial Company, Prudential Financial could also be subject to additional capital requirements for, and other restrictions on, proprietary trading and sponsorship of, ~~Contents~~and investment in, hedge, private equity and other covered funds.


•	The Council could recommend new or heightened standards and safeguards for activities or practices in which Prudential Financial and other financial services companies engage. We cannot predict whether any such recommendations will be made or their effect on our business, results of operations, cash flows or financial condition.

• Dodd-Frank ~~creates~~created a new framework for regulation of the over-the-counter ~~(“OTC”)~~ derivatives markets which could impact various activities of Prudential Global Funding LLC ~~(“PGF”)~~, Prudential Financial and its insurance subsidiaries, which use derivatives for various purposes (including hedging interest rate, foreign currency and equity market exposures). While many of the regulations required to be promulgated under Dodd-Frank with respect to derivatives markets have been adopted by the applicable regulatory agencies, the regulations that remain to be adopted or that have not been fully implemented could substantially increase the cost of hedging and related operations, affect the profitability of our products or their attractiveness to our clients or cause us to alter our hedging strategy or implementation thereof or increase and/or change the composition of the risks we do not hedge. In particular, ~~final~~the ~~rules~~Company ~~regarding~~continues ~~margin~~to monitor increased capital requirements for ~~OTC~~ derivatives ~~have~~transactions ~~not~~that ~~been adopted, and any margin rules applicable to the Company~~ may be ~~more~~imposed ~~onerous~~on ~~than~~banks ~~the~~that ~~collateral~~are ~~posting requirements under~~ our ~~existing OTC derivatives contracts~~counterparties.

•

Title II of Dodd-Frank provides that a financial company such as Prudential Financial may be subject to a special orderly liquidation process outside the federal bankruptcy code, administered by the FDIC as receiver, upon a determination that Prudential Financial is in default or in danger of default and presents a systemic risk to U.S. financial stability, and Prudential Financial U.S. insurance subsidiaries would be subject to rehabilitation and liquidation proceedings under state insurance law. We cannot predict how creditors of Prudential Financial or its insurance and non-insurance subsidiaries, including the holders of Prudential Financial debt, will evaluate this potential or whether it will impact our financing or hedging costs.

~~Foreign~~Changes ~~governmental~~in ~~actions~~the legislation and regulation of retirement products and services, including proposed regulations released by the DOL in 2015, could ~~subject~~adversely usaffect toour ~~substantial~~business, ~~additional~~results ~~regulation.~~of operations, cash flows and financial condition.

In ~~addition~~April to2015, the ~~adoption~~DOL ofreleased ~~Dodd~~a proposed regulation, accompanied by new class exemptions and proposed amendments to long-~~Frank~~standing inexemptions from the ~~United~~prohibited ~~States~~transaction provisions under ERISA, and it is expected that the ~~Financial~~DOL ~~Stability~~will ~~Board~~seek (to promulgate final rules in 2016. If enacted, the rules will redefine who would be considered a “~~FSB~~fiduciary”) for purposes of transactions with plans, ~~has~~plan ~~issued~~participants aand ~~series~~IRAs. We cannot predict the exact nature and scope of ~~proposals~~ ~~intended~~any tonew ~~produce~~final ~~significant~~rules ~~changes~~or their impact on our business; however, the new rules may effectively impose limits on interactions with existing and prospective customers in ~~how~~our Individual ~~financial~~Life ~~companies~~(including Prudential Advisors) and Individual Annuities businesses. In addition, ~~particularly~~we ~~that~~may ~~are~~experience ~~members~~increased costs if we need to adapt our technology and operational infrastructure to meet disclosure and compliance requirements under the proposed rules. Our compliance with the proposed rules could lead to a loss of ~~large~~customers and ~~complex~~revenues, ~~financial~~and ~~groups~~otherwise adversely affect our business, ~~should~~results beof ~~regulated~~operations, cash flows and financial condition. If the proposed rules are adopted in their current form, significant potential impacts on certain of our businesses would include the following.

On• ~~July 18, 2013, the FSB identified~~ Prudential ~~Financial~~Advisors: asWe aexpect ~~global~~compliance ~~systemically~~with ~~important insurer (“G-SII”). The framework policy measures for GSIIs published by~~ the ~~International Association of Insurance Supervisors (the~~ “~~IAIS”)~~best ~~include~~interest ~~enhanced~~contract ~~group-wide supervision, enhanced capital standards, (including basic capital requirements (“BCR~~exemption”) ~~and higher~~will ~~loss~~be ~~absorption~~required ~~capital~~for ~~standards),~~IRA ~~enhanced liquidity planning~~ and ~~management,~~small ~~and development of a risk reduction~~ plan ~~and~~retirement ~~recovery~~accounts ~~and~~for ~~resolution~~a ~~plans.~~wide Inrange ~~October~~of ~~2014~~products, ~~the~~representing ~~IAIS~~a ~~concluded~~significant ~~the~~part ~~development~~ of ~~its~~Prudential ~~initial~~Advisors’ ~~BCR~~total ~~framework~~business. ~~Depending~~ onThis ~~the~~would ~~directions~~give ofcustomers ~~domestic~~a ~~group~~private ~~wide~~right ~~supervisors,~~of ~~G-SIIs~~action ~~such~~for asbreach ~~Prudential~~of ~~Financial~~contract ~~will~~if bean ~~required~~advisor toprovides ~~report~~advice ~~their~~that ~~BCR~~is ~~results~~not ~~beginning~~ in ~~2015~~the oncustomer’s abest ~~confidential basis~~interest. ~~The~~We ~~BCR~~expect ~~will~~this ~~continue~~would toresult bein ~~revised~~additional ~~and~~costs, ~~refined~~oversight byand ~~the~~litigation ~~IAIS once the confidential reporting period begins~~risks, ~~and~~as awell ~~final~~as ~~capital~~changes ~~framework~~to ~~for~~compensation ~~G-SIIs~~and isbenefit ~~anticipated~~structures byand ~~2019.~~may ~~Policy~~require ~~measures~~us ~~applicable~~ to ~~G-SIIs~~review ~~would~~product ~~need~~offerings to beensure ~~implemented~~a bysufficient ~~legislation~~variety ~~or regulation in each applicable jurisdiction. We cannot predict the outcome~~ of ~~Prudential Financial’s identification as a G~~non-~~SII~~proprietary ~~on the regulation of our businesses~~options.

At• ~~the~~Annuities: ~~direction~~Certain ofdistributors ~~the FSB,~~may ~~the~~restrict ~~IAIS is developing a model framework (“ComFrame”) for~~ the ~~supervision~~sale of ~~internationally active insurance groups (“IAIGs”) that contemplates “group wide supervision” across national boundaries~~annuities, ~~including uniform~~and ~~standards~~may ~~for~~remove ~~insurer~~themselves ~~corporate~~as ~~governance~~broker ~~and~~of ~~enterprise risk management~~record, atransitioning ~~framework~~servicing ~~for group capital adequacy assessment that accounts for group-wide risks,~~ and ~~the~~compliance ~~establishment~~back ofto ~~ongoing supervisory colleges.~~ Prudential ~~Financial qualifies as an IAIG~~. In ~~October 2013~~addition, ~~the~~we ~~IAIS~~may ~~announced~~need ~~that~~to italter ~~expects~~our toproduct ~~develop~~design ato ~~risk-based~~emphasize ~~global~~simplicity, ~~insurance~~transparency ~~capital~~and ~~standard~~reduced ~~applicable~~fees. toWe ~~IAIGs~~may ~~with~~also ~~implementation~~need ~~scheduled~~ to ~~begin~~monitor inwholesaling ~~2019,~~ and inother ~~December~~sales ~~2014,~~support itactivities ~~published~~so aas ~~proposed standard~~not ~~for~~to ~~public~~be ~~comment.~~considered Atfiduciary ~~this time~~advice, wewhich ~~cannot predict what additional capital requirements, compliance costs or other burdens these requirements~~ would ~~impose~~subject onthose ~~us,~~activities ifto ~~adopted.~~greater liability.

~~Changes~~Foreign ingovernmental ~~U.S.~~actions ~~federal, income tax law or in the income tax laws of other jurisdictions in the U.S. in which we operate~~ could ~~make~~subject ~~some~~us ~~of the Company’s products less attractive~~ to ~~consumers~~substantial ~~and~~additional ~~also increase our tax costs~~regulation.

~~There~~In isaddition ~~uncertainty~~to ~~regarding~~the ~~U.S.~~adoption ~~taxes both~~of ~~for~~Dodd-Frank ~~individuals and corporations. Discussions~~ in ~~Washington continue concerning~~ the ~~need~~United ~~to reform the tax code~~States, ~~primarily by lowering tax rates and broadening~~ the ~~base~~Financial byStability ~~reducing~~Board or(“FSB”), ~~eliminating~~has ~~certain~~issued ~~tax~~a ~~expenditures.~~series ~~Reducing~~of ~~or eliminating~~proposals ~~certain~~intended ~~tax expenditures could make the Company’s products less attractive~~ to ~~customers.~~produce Itsignificant ischanges ~~unclear~~in ~~whether~~how orfinancial ~~when~~companies, ~~Congress~~particularly ~~may~~those ~~take~~that upare ~~overall~~members ~~tax~~of ~~reform~~large and ~~what~~complex ~~would~~financial begroups, ~~the~~should ~~impact~~be ~~of reform on the Company and its products~~regulated.

However even in the absence of overall tax reform, the large federal deficit, as well as the budget constraints faced by many states and localities, increases the likelihood that Congress and state and local governments will raise revenue by enacting legislation increasing the taxes paid by individuals and corporations. This can be accomplished either by raising rates or otherwise changing the tax rules. 7

8Table of Contents

~~Table~~The FSB identified Prudential Financial as a global systemically important insurer (“G-SII”). The framework policy measures for G-SIIs published by the International Association of ~~Contents~~Insurance Supervisors (the “IAIS”) include enhanced group-wide supervision, enhanced capital standards, enhanced liquidity planning and management, and development of a risk reduction plan and recovery and resolution plans. The IAIS has released a basic capital requirement ("BCR") and higher loss absorbency ("HLA") standard that have been approved by the FSB and G20 and implementation in 2019. The IAIS is also developing ComFrame for the supervision of Internationally Active Insurance Groups that seeks to promote effective and globally-consistent supervision of the insurance industry and contribute to global financial stability through uniform standards for insurer corporate governance, enterprise risk management and other control functions, group-wide supervision and group capital adequacy. ComFrame is also scheduled to be adopted by the IAIS in 2019. Policy measures applicable to G-SIIs would need to be implemented by legislation or regulation in each applicable jurisdiction. We cannot predict the impact of BCR, HLA, or ComFrame on our business or the outcome of Prudential Financial’s identification as a G-SII on the regulation of the Company.

~~Congress~~Changes ~~from~~in ~~time~~accounting torequirements ~~time considers legislation that~~ could ~~make~~negatively ~~the~~impact ~~Company’s~~our ~~products~~reported ~~less attractive~~results ~~to consumers. Current U.S. federal income tax laws generally permit certain holders to defer taxation on the build-up~~ of ~~value~~operations ~~of annuities~~ and ~~life~~our ~~insurance~~reported ~~products~~financial ~~until payments are actually made to the policyholder or other beneficiary and to exclude from taxation the death benefit paid under a life insurance contract~~position. While higher tax rates increase the benefits of tax deferral on the build-up of value of annuities and life insurance, making the Company’s products more attractive to consumers, legislation that reduces or eliminates deferral would have a potential negative effect on the Company’s products.

~~Congress,~~Accounting asstandards ~~well~~are ascontinuously ~~state~~evolving and ~~local~~subject ~~governments~~to change. For example, ~~also~~the ~~considers~~Financial ~~from~~Accounting ~~time~~Standards Board ("FASB") has an ongoing project to ~~time~~revise ~~legislation~~accounting ~~that~~standards ~~could~~for ~~increase~~insurance contracts. While the ~~amount~~final resolution of ~~corporate taxes~~changes weto ~~pay,~~U.S. ~~thereby~~GAAP ~~reducing~~pursuant ~~earnings.~~to ~~For~~this ~~example~~project is unclear, changes into the ~~law~~manner ~~relating~~in towhich ~~tax~~we ~~reserving~~account ~~methodologies~~ for ~~term~~insurance ~~life~~products, or ~~universal~~other ~~life~~changes ~~insurance~~in ~~policies~~accounting ~~with~~standards, ~~secondary~~could ~~guarantees~~have ora ~~other~~material ~~products~~effect ~~could~~on our reported results of operations and financial condition. Further, changes in accounting standards may impose special demands on issuers in areas such as corporate governance, internal controls and disclosure, and may result in ~~higher~~substantial ~~current~~conversion ~~taxes~~costs to implement.

~~The~~Changes ~~products the Company sells have different tax characteristics,~~ in ~~some~~U.S. ~~cases~~federal ~~generating~~income tax ~~deductions~~law ~~for~~or ~~the~~in ~~Company. The level of profitability of certain of~~ the ~~Company’s products is significantly dependent on these characteristics and the Company’s ability to continue to generate taxable~~ income, ~~which~~tax islaws ~~taken~~of ~~into~~other ~~consideration~~jurisdictions ~~when~~in ~~pricing products and is a component of~~ the ~~Company’s capital management strategies~~U.S. ~~Accordingly, changes~~ in ~~tax~~which ~~law,~~we ~~the~~operate ~~Company’s~~could ~~ability~~make tosome ~~generate taxable income, or other factors impacting the availability or value~~ of the ~~tax characteristics generated by the~~ Company’s products, ~~could~~less ~~impact~~attractive ~~product~~to ~~pricing~~consumers and ~~returns~~also orincrease ~~require~~ the Company's to reduce its sales of these products or implement other actions that could be disruptive to our businesses. In addition, the adoption of “principles based” approaches for statutory reserves may lead to significant changes to the way tax ~~reserves are determined and thus reduce future tax deductions~~costs.

~~Interruption~~There inis ~~telecommunication,~~uncertainty ~~information~~regarding ~~technology~~U.S. taxes both for individuals and ~~other~~corporations. ~~operational~~Discussions ~~systems,~~in orWashington acontinue ~~failure~~concerning the need to ~~maintain~~reform the ~~security~~tax code, ~~confidentiality~~ primarily by lowering tax rates and broadening the base by reducing or ~~privacy~~eliminating ofcertain ~~sensitive~~tax ~~data~~expenditures. ~~residing~~Reducing onor ~~such~~eliminating ~~systems,~~certain tax expenditures could ~~harm~~make ~~our~~the ~~business~~Company’s products less attractive to customers. It is unclear whether or when Congress may take up overall tax reform and what would be the impact of reform on the Company and its products.

~~We depend heavily on our telecommunication~~However, ~~information~~even ~~technology~~in ~~and other operational systems and on~~ the ~~integrity~~absence ~~and timeliness~~ of ~~data~~overall wetax ~~use~~reform, tothe ~~run~~large ~~our~~federal ~~businesses~~deficit, ~~and~~as ~~service~~well ~~our customers. These systems may fail to operate properly or become disabled~~ as athe ~~result~~budget ~~of events~~constraints orfaced ~~circumstances~~by ~~wholly~~many orstates ~~partly~~and ~~beyond our control. Further~~localities, weincreases ~~face~~ the ~~risk~~likelihood ofthat ~~operational~~Congress and ~~technology~~state ~~failures by others, including clearing agents, exchanges~~ and ~~other~~local ~~financial~~governments ~~intermediaries~~will ~~and~~raise ofrevenue ~~vendors~~by ~~and~~enacting ~~parties~~legislation toincreasing ~~which we outsource~~ the ~~provision~~taxes ofpaid ~~services~~by orindividuals ~~business operations. If these parties do not perform as anticipated, we may experience operational difficulties, increased costs~~ and ~~other adverse effects on our business~~corporations. ~~These~~This ~~risks~~can ~~are~~be ~~heightened~~accomplished either by ~~our offering~~raising ofrates ~~increasingly complex products, such as those that feature automatic asset transfer~~ or ~~re-allocation~~otherwise ~~strategies,~~changing ~~and~~the bytax ~~our employment of complex investment, trading and hedging programs~~rules.

~~Despite~~Congress ~~our~~from ~~implementation~~time ofto atime ~~variety~~considers oflegislation ~~security~~that ~~measures,~~could ~~our~~make ~~information~~the ~~technology~~Company’s ~~and~~products ~~other~~less ~~systems~~attractive ~~could be subject~~ to ~~physical~~consumers. ~~or electronic~~Current ~~break-ins,~~U.S. ~~unauthorized~~federal ~~tampering~~income ortax ~~other~~laws ~~security~~generally ~~breaches,~~permit ~~resulting~~certain inholders ato ~~failure~~defer totaxation ~~maintain~~on the ~~security,~~build-up ~~confidentiality~~of orvalue ~~privacy~~ of ~~sensitive~~annuities ~~data,~~and ~~including~~life ~~personal~~insurance ~~information~~products ~~relating~~until topayments ~~customers~~are oractually inmade to the ~~misappropriation of~~policyholder ~~our~~or ~~intellectual~~other ~~property~~beneficiary orand ~~proprietary~~to ~~information.~~exclude ~~Many~~from ~~financial~~taxation ~~services~~the ~~institutions~~death ~~and~~benefit ~~companies~~paid ~~engaged~~under ina ~~data~~life ~~processing~~insurance ~~have~~contract. ~~reported~~While ~~breaches~~higher intax rates increase the ~~security~~benefits of ~~their~~tax ~~websites~~deferral oron ~~other~~the ~~systems,~~build-up ~~some~~ of ~~which~~value ~~have~~of ~~involved sophisticated~~annuities and ~~targeted~~life ~~attacks~~insurance, ~~intended~~making tothe ~~obtain~~Company’s ~~unauthorized~~products ~~access~~more attractive to ~~confidential information~~consumers, ~~destroy~~legislation ~~data,~~that ~~disrupt~~reduces or ~~degrade~~eliminates ~~service,~~deferral ~~sabotage~~would ~~systems~~have ora ~~cause~~potential ~~other~~negative ~~damage,~~effect ~~often~~on ~~through~~ the ~~introduction~~Company’s ~~of computer viruses or malware, cyber attacks and other means~~products.

~~Despite~~Congress, ~~our~~as ~~efforts~~well toas ~~ensure~~state ~~the~~and ~~integrity~~local ~~of our systems~~governments, italso isconsiders ~~possible~~from ~~that~~time ~~we may not be able~~ to ~~anticipate~~ ortime tolegislation ~~implement~~that ~~effective~~could ~~preventive~~increase ~~measures~~the ~~against~~amount ~~all security breaches~~ of ~~these~~corporate ~~types,~~taxes ~~especially~~we ~~because the techniques used change frequently or are not recognized until launched~~pay, ~~and~~thereby ~~because~~reducing cyber attacks can originate from a wide variety of sources, including third parties outside of Prudential Financial such as persons who are involved with organized crime or associated with external service providers or who may be linked to terrorist organizations or hostile foreign governmentsearnings. ~~Those~~For ~~parties may also attempt to fraudulently induce employees~~example, ~~customers~~changes ~~or other users of Prudential Financial’s systems to disclose sensitive information~~ in ~~order~~the tolaw ~~gain~~relating ~~access~~ to ~~our~~tax ~~data~~reserving ormethodologies ~~that~~for ofterm ~~our~~life ~~customers~~ or ~~clients. In~~universal ~~addition,~~life ~~while~~insurance ~~the~~policies ~~Company~~with ~~has~~secondary ~~certain~~guarantees ~~standards~~or ~~for~~other ~~all~~products ~~vendors~~could ~~that provide us services, our vendors, and in turn, their own service providers, may become subject to a security breach, including as a~~ result ~~of their failure to perform~~ in ~~accordance~~ ~~with~~higher ~~contractual~~current ~~arrangements~~taxes.

~~Interruption~~The inproducts ~~telecommunication,~~the ~~information~~Company ~~technology~~sells ~~and~~have ~~other~~different ~~operational~~tax ~~systems~~characteristics, orin ~~a failure~~some tocases ~~maintain~~generating tax deductions for the ~~security,~~Company. ~~confidentiality~~The orlevel ~~privacy~~of profitability of ~~sensitive~~certain ~~data~~of ~~residing~~the Company’s products is significantly dependent on ~~such~~these ~~systems,~~characteristics ~~whether~~and ~~due~~the Company’s ability to ~~actions~~continue byto usgenerate ortaxable ~~others~~income, ~~could~~which ~~delay~~is ortaken ~~disrupt~~into ~~our~~consideration ~~ability~~when topricing doproducts ~~business~~ and ~~service~~is ~~our~~a ~~customers,~~component ~~harm~~of ~~our~~the ~~reputation~~Company’s capital management strategies. Accordingly, ~~result~~ changes in atax ~~violation~~law, ofthe ~~applicable~~Company’s ~~privacy~~ability ~~and~~to generate taxable income, or other ~~laws~~factors impacting the availability or value of the tax characteristics generated by the Company’s products, ~~subject~~could usimpact product pricing and returns or require the Company to ~~substantial~~reduce ~~regulatory~~its ~~sanctions~~sales ~~and~~of these products or implement other ~~claims,~~actions ~~lead~~that could be disruptive to aour ~~loss~~businesses. In addition, the adoption of ~~customers~~“principles ~~and~~based” ~~revenues,~~approaches orfor ~~financial~~statutory ~~loss~~reserves may lead to ~~our~~significant ~~customers~~changes to the way tax reserves are determined and ~~otherwise~~thus ~~adversely~~reduce ~~affect~~future ~~our~~tax ~~business~~deductions.

9Interruption in telecommunication, information technology and other operational systems, or a failure to maintain the security, confidentiality or privacy of sensitive data residing on such systems, could harm our business.

~~Table of Contents~~8

~~The~~Table ~~occurrence~~ of ~~natural or man-made disasters could adversely affect our operations, results of operations and financial condition.~~ Contents

~~The~~We ~~occurrence~~depend ofheavily ~~natural~~on ~~disasters~~our telecommunication, ~~including~~information ~~hurricanes,~~technology ~~floods,~~and ~~earthquakes,~~other ~~tsunamis, tornadoes,~~operational ~~fires,~~systems ~~explosions~~and on the integrity and timeliness of data we use to run our businesses and service our customers. These systems may fail to operate properly or become disabled as a result of events or circumstances wholly or partly beyond our control. Further, ~~pandemic~~we ~~disease~~face the risk of operational and ~~man-made~~technology ~~disasters~~failures by others, including ~~acts~~clearing agents, exchanges and other financial intermediaries and of ~~terrorism~~vendors and ~~military~~parties ~~actions,~~to ~~could~~which ~~adversely~~we ~~affect~~outsource ~~our~~the provision of services or business operations. If these parties do not perform as anticipated, ~~results~~we may experience operational difficulties, increased costs and other adverse effects on our business. These risks are heightened by our offering of ~~operations~~increasingly complex products, such as those that feature automatic asset transfer or ~~financial~~re-allocation ~~condition~~strategies, ~~including~~and inby ~~the~~our ~~following~~employment ~~respects:~~of complex investment, trading and hedging programs.

•Despite ~~Catastrophic~~our ~~loss~~implementation of ~~life~~a ~~due~~variety of security measures, our information technology and other systems could be subject to ~~natural~~physical or ~~man~~electronic break-~~made~~ins, ~~disasters~~unauthorized ~~could~~tampering ~~cause~~or usother security breaches, resulting in a failure to ~~pay~~maintain ~~benefits~~the atsecurity, ~~higher~~confidentiality ~~levels~~or privacy of sensitive data, including personal information relating to customers or in the misappropriation of our intellectual property or proprietary information. Many financial services institutions and/ companies engaged in data processing have reported breaches in the security of their websites or ~~materially~~other ~~earlier~~systems, ~~than~~some ~~anticipated~~of which have involved sophisticated and ~~could~~targeted ~~lead~~attacks intended to ~~unexpected~~obtain ~~changes~~unauthorized inaccess ~~persistency~~to ~~rates~~confidential information, destroy data, disrupt or degrade service, sabotage systems or cause other damage, often through the introduction of computer viruses or malware, cyber attacks and other means.

•Despite Aour ~~man-made~~efforts to ensure the integrity of our systems, it is possible that we may not be able to anticipate or ~~natural~~to ~~disaster~~implement effective preventive measures against all security breaches of these types, especially because the techniques used change frequently or are not recognized until launched, and because cyber attacks can originate from a wide variety of sources, including third parties outside of Prudential Financial such as anpersons ~~earthquake~~who inare ~~Japan,~~involved ~~could~~with ~~result~~organized incrime ~~disruptions~~or inassociated ~~our~~with ~~operations~~external service providers or who may be linked to terrorist organizations or hostile foreign governments. Those parties may also attempt to fraudulently induce employees, ~~losses~~customers or other users of Prudential Financial’s systems to disclose sensitive information in order to gain access to our ~~investment~~data ~~portfolio~~or that of our customers or clients. In addition, while the ~~failure~~Company ofhas certain standards for all vendors that provide us services, our ~~counterparties~~vendors, and in turn, their own service providers, may become subject to ~~perform~~a security breach, orincluding ~~cause~~as ~~significant~~a ~~volatility~~result of their failure to perform in ~~global~~accordance ~~financial~~with ~~markets~~contractual arrangements.

•Security Abreaches ~~terrorist~~or ~~attack~~other ~~affecting~~technological ~~financial~~failures ~~institutions~~may also result in ~~the~~regulatory ~~United~~inquiries, ~~States~~regulatory orproceedings, ~~elsewhere~~regulatory ~~could~~and ~~negatively~~litigation ~~impact~~costs, ~~the~~and ~~financial~~reputational ~~services~~damage. ~~industry~~We inmay ~~general~~incur reimbursement and ~~our~~other ~~business operations~~expenses, ~~investment~~including ~~portfolio~~the costs of litigation and ~~profitability~~litigation settlements and additional compliance costs. We may also incur considerable expenses in ~~particular~~enhancing and upgrading computer systems and systems security following such a failure.

•Interruption ~~Pandemic~~in ~~disease~~telecommunication, ~~could~~information ~~have~~technology aand ~~severe~~other ~~adverse~~operational ~~effect~~systems, onor ~~the~~a ~~Company’s~~failure ~~business.~~to ~~The~~maintain ~~potential~~the ~~impact~~security, ofconfidentiality ~~such~~or aprivacy ~~pandemic on the Company’s results~~ of ~~operations~~sensitive ~~and~~data ~~financial~~residing ~~position is highly speculative, and would depend~~ on ~~numerous~~such ~~factors~~systems, ~~including:~~whether ~~the~~due ~~effectiveness~~to ofactions ~~vaccines~~by ~~and~~us ~~the~~or ~~rate~~others, ofcould ~~contagion;~~delay ~~the~~or ~~regions~~disrupt ofour ~~the~~ability ~~world~~to ~~most~~do ~~affected;~~business ~~the effectiveness of treatment for the infected population; the rates of mortality~~ and ~~morbidity~~service ~~among~~our ~~various~~customers, ~~segments~~harm ofour ~~the~~reputation, ~~insured~~result ~~population;~~in ~~the~~a ~~collectability~~violation of ~~reinsurance;~~applicable ~~the~~privacy ~~possible~~and ~~macroeconomic~~other ~~effects~~laws, ofsubject aus ~~pandemic~~to onsubstantial ~~the~~regulatory ~~Company’s~~sanctions ~~asset~~and ~~portfolio;~~other ~~the~~claims, ~~effect~~lead onto ~~lapses~~a ~~and~~loss ~~surrenders~~ of ~~existing~~customers ~~policies~~and revenues, asor ~~well~~financial asloss ~~sales~~to ofour ~~new~~customers ~~policies;~~ and ~~many~~otherwise ~~other~~adversely ~~variables~~affect our business.

The ~~above~~occurrence ~~risks are more pronounced in respect~~ of ~~geographic~~natural ~~areas,~~or ~~including~~man-made ~~major~~disasters ~~metropolitan~~could ~~centers,~~adversely ~~where~~affect weour ~~have concentrations of customers~~operations, ~~including~~results ~~under group and individual life insurance, concentrations~~ of ~~employees or significant~~ operations, and ~~in respect~~financial ~~of countries and regions in which we operate subject to a greater potential threat of military action or conflict~~condition.

~~There~~The ~~can~~occurrence ~~be no~~of ~~assurance~~natural ~~that~~disasters, ~~our~~including ~~business~~hurricanes, ~~continuation~~floods, ~~plans~~earthquakes, ~~and~~tsunamis, ~~insurance~~tornadoes, ~~coverages~~fires, ~~would~~explosions, bepandemic ~~effective~~disease inand ~~mitigating~~man-made ~~any~~disasters, ~~negative~~including ~~effects~~acts onof ~~our~~terrorism ~~operations~~and ormilitary ~~profitability~~actions, incould ~~the~~adversely ~~event~~affect ofour aoperations, ~~terrorist~~results ~~attack~~of operations or ~~other~~financial ~~disaster.~~condition, including in the following respects:

~~Finally,~~• ~~climate~~Catastrophic ~~change~~loss ~~may~~of ~~increase~~life ~~the~~due ~~frequency~~to ~~and~~natural ~~severity~~or ofman-made ~~weather related~~ disasters. Incould ~~addition,~~cause ~~climate~~us ~~change~~to ~~regulation~~pay ~~may affect~~benefits ~~the~~at ~~prospects~~higher oflevels ~~companies~~ and/or ~~other~~materially ~~entities~~earlier ~~whose~~than ~~securities~~anticipated ~~we hold~~ and ~~other~~could ~~counterparties,~~lead ~~including~~to ~~reinsurers,~~unexpected ~~and~~changes ~~affect~~in ~~the~~persistency ~~value of investments, including real estate investments we hold or managed for others~~rates. ~~We cannot predict the long term impacts on us from climate change or related regulation.~~

~~Risks~~• ~~associated~~A ~~with~~man-made ~~real~~or ~~estate~~natural ~~investing~~disaster, such as an earthquake in Japan, could result in disruptions in our operations, losses in our investment portfolio or the failure of our counterparties to perform, or cause significant volatility in global financial markets.

~~Liquidity~~• ofA ~~Investments~~terrorist attack affecting financial institutions in the United States or elsewhere could negatively impact the financial services industry in general and our business operations, investment portfolio and profitability in particular.

~~Because~~• ~~the~~Pandemic ~~Real~~disease ~~Property~~could ~~Account~~have ~~will,~~a ~~through~~severe ~~the~~adverse ~~Partnership,~~effect ~~invest~~on ~~primarily~~the inCompany’s ~~real~~business. ~~estate,~~The ~~its~~potential ~~assets~~impact ~~will~~of ~~not~~such bea aspandemic ~~liquid~~on as the ~~investments~~ ~~generally~~Company’s ~~made~~results ~~by separate accounts~~ of ~~life~~operations ~~insurance~~and ~~companies~~financial ~~funding~~position ~~variable~~is ~~life~~highly ~~insurance~~speculative, and ~~variable~~would ~~annuity~~depend ~~contracts. The~~on ~~Partnership~~numerous ~~will~~factors, ~~however,~~including: ~~hold~~the ~~approximately~~effectiveness ~~10%~~ of ~~its~~vaccines ~~assets in cash~~ and ~~invested~~the inrate ~~liquid securities. The~~of ~~primary~~contagion; ~~purposes~~the ~~for~~regions ~~such~~of ~~investments are to meet~~ the ~~expenses~~world ~~involved~~most inaffected; the ~~operation~~effectiveness of ~~the~~treatment ~~Partnership~~for ~~and~~the toinfected ~~allow~~population; itthe torates ~~have~~of ~~sufficient~~mortality ~~liquid~~and ~~assets~~morbidity toamong ~~meet~~various ~~any~~segments ~~requests~~of ~~for~~the ~~withdrawals~~insured ~~from~~population; the ~~Real~~collectability ~~Property Account. Such~~of ~~withdrawals~~reinsurance; ~~would~~the bepossible ~~made~~macroeconomic ineffects ~~order~~of toa ~~meet~~pandemic ~~requested~~on ~~or required payments under~~ the ~~Contracts.~~

We have taken steps to ensure that the Partnership will be liquid enough to meet all anticipated withdrawals by the Partners to meet the separate accounts’ liquidity requirements. It is possible that the Partnership may need to dispose of a real property or mortgage loan investment promptly in order to meet such withdrawal requests. 9

~~General~~Table ~~Risks~~ of ~~Real Property Investments~~ Contents

ByCompany’s ~~participating~~asset inportfolio; the ~~Real~~effect ~~Property~~on ~~Account~~lapses and ~~thereby~~surrenders ~~in the investment performance~~ of ~~the Partnership~~existing policies, ~~you~~as ~~will~~well beas ~~subject~~sales ~~to many~~ of ~~the~~ ~~risks~~new ofpolicies; ~~real~~and ~~property~~many ~~investments. These~~other ~~include:~~ variables.

~~1. Risks of Ownership of Real Properties.~~ The ~~Partnership~~ ~~will~~above berisks ~~subject~~are tomore ~~the~~pronounced ~~risks inherent~~ in ~~the~~respect ~~ownership~~ of ~~real~~geographic ~~property~~areas, ~~such~~including asmajor ~~fluctuations~~metropolitan incenters, ~~occupancy~~where ~~rates~~we ~~and~~have ~~operating~~concentrations ~~expenses~~of ~~and~~customers, ~~variations~~including inunder ~~rental~~group ~~schedules. It may be adversely affected by general~~ and ~~local~~individual ~~economic~~life ~~conditions~~insurance, ~~the~~concentrations ~~supply~~ of ~~and~~employees ~~demand~~or ~~for~~significant ~~properties~~operations, ofand ~~the type~~ in ~~which~~respect ~~the~~of ~~Partnership~~countries ~~invests, zoning laws,~~ and ~~real~~regions ~~property tax rates. Operation of property~~ in which ~~the~~we ~~Partnership~~operate ~~invests~~subject ~~will primarily involve rental of that property~~ to ~~tenants. The financial failure of~~ a ~~tenant~~greater ~~resulting~~potential inthreat ~~the termination~~ of ~~their~~military ~~lease~~action ~~might~~or ~~cause a reduction in the~~ conflict.

10There can be no assurance that our business continuation plans and insurance coverages would be effective in mitigating any negative effects on our operations or profitability in the event of a terrorist attack or other disaster.

~~Table~~Finally, climate change may increase the frequency and severity of ~~Contents~~weather related disasters. In addition, climate change regulation may affect the prospects of companies and other entities whose securities we hold and other counterparties, including reinsurers, and affect the value of investments, including real estate investments we hold or manage for others. We cannot predict the long term impacts on us from climate change or related regulation.

~~cash~~Risks ~~flow~~associated towith ~~the~~real ~~Partnership. If~~estate a lease is terminated, there is no assurance that the Partnership will be able to find a new tenant for the property on terms as favorable to the Partnership as those from the prior tenant. Investments in hotels are subject to additional risk from the daily turnover and fluctuating occupancy rates of hotel rooms and the absence of long-term tenants. investing

~~The~~Liquidity ~~Partnership’s properties will also be subject to the risk~~ of ~~loss due to certain types of property damage (such as from nuclear power plant accidents and wars) which are either uninsurable or not economically insurable.~~ Investments

2.Because ~~Risks~~the ofReal ~~Mortgage~~Property ~~Loan Investments. The~~Account ~~Partnership’s mortgage loan investments~~ will, bethrough ~~subject to~~ the ~~risk of default by the borrowers. In this event the~~ Partnership, ~~would~~invest ~~have~~primarily ~~the~~in ~~added~~real ~~responsibility~~estate, ~~of foreclosing on or pursuing other remedies on the underlying properties to protect the value of~~ its ~~mortgage~~assets ~~loans. A borrower’s ability to meet its mortgage loan payments~~ will not be ~~dependent~~as ~~upon~~liquid as the ~~risks~~investments generally ~~inherent~~made toby ~~the~~separate ~~ownership~~accounts of ~~real~~life ~~property.~~insurance ~~Mortgage~~companies ~~loans made~~funding byvariable ~~the~~life ~~Partnership~~insurance ~~will~~and ~~generally~~variable ~~not~~annuity ~~be personal obligations of the borrowers~~contracts. The Partnership will, ~~only~~however, ~~rely~~hold onapproximately ~~the~~10% ~~value~~ of the ~~underlying~~Partnership's ~~property~~assets ~~for~~in ~~its~~cash ~~security. Mechanics’,~~or ~~material~~invested ~~men’s,~~in ~~government,~~liquid instruments and ~~other~~securities ~~liens may~~although ~~have~~the orgeneral ~~obtain~~partners ~~priority~~reserve ~~over~~discretion ~~the~~to ~~Partnership’s~~increase ~~security~~this ~~interest~~amount into ~~the~~meet ~~property.~~partnership liquidity requirements.

InWe ~~addition,~~have ~~the~~taken ~~Partnership’s~~steps ~~mortgage loan~~to ~~investments~~ensure that the Partnership will be ~~subject~~liquid enough to ~~prepayment~~meet ~~risks. If~~all ~~the~~anticipated ~~terms~~withdrawals ofby the ~~mortgage~~General ~~loans~~Partners ~~permit,~~to ~~mortgagors~~meet ~~may~~the ~~prepay~~separate ~~the~~accounts’ ~~loans,~~liquidity ~~thus~~requirements. ~~possibly~~It ~~changing~~is possible that the Partnership’s ~~return.~~may need to dispose of a real property or mortgage loan investment promptly in order to meet such withdrawal requests.

~~Junior~~General ~~mortgage~~Risks ~~loans (including wraparound mortgage loans) will be subject to greater risk than first mortgage loans, since they will be subordinate to liens~~ of ~~senior~~Real ~~mortgagees.~~Property In the event a default occurs on a senior mortgage, the Partnership may be required to make payments or take other actions to cure the default (if it has the right to do so) in order to prevent foreclosure on the senior mortgage and possible loss of all or portions of the Partnership’s investment. “Due on sale” clauses included in some senior mortgages, accelerating the amount due under the senior mortgage in the case of sale of the property, may be applied to the sale of the property upon foreclosure by the Partnership of its junior mortgage loan. Investments

~~The~~By ~~risk~~participating ofin ~~lending on real estate increases as~~ the ~~proportion,~~Real ~~which~~Property ~~the~~Account ~~amount~~and ofthereby ~~the~~in ~~mortgage loan bears to~~ the ~~fair~~investment ~~market~~performance ~~value~~ of the ~~real estate increases.~~ ~~The~~ Partnership, ~~usually~~you ~~does~~will ~~not~~be ~~make~~subject ~~mortgage~~to ~~loans~~many of ~~over 80% of~~ the ~~estimated~~risks ~~or appraised value~~ of ~~the~~real property ~~that secures the loan~~investments. ~~There~~These ~~can be no assurance, that in the event of a default, the Partnership will realize an amount equal to the estimated or appraised value of the property on which a mortgage loan was made.~~ include:

~~Mortgage~~1. ~~loans~~Risks ~~made~~of byOwnership ~~the~~of Real Properties. The Partnership ~~may~~will be subject to ~~state~~the ~~usury~~risks ~~laws. These~~inherent ~~laws~~in ~~impose~~the ~~limits~~ownership onof ~~interest~~real ~~charges~~property such as fluctuations in occupancy rates and ~~possible penalties~~operating ~~for~~expenses ~~violation~~and ofvariations ~~those~~in ~~limits~~rental schedules. It may be adversely affected by general and local economic conditions, ~~including~~the ~~restitution~~supply of ~~excess~~and ~~interest,~~demand ~~unenforceability~~for properties of ~~debt~~the type in which the Partnership invests, zoning laws, and ~~treble~~real ~~damages~~property tax rates. ~~The~~Operation ~~Partnership~~of ~~does~~property ~~not~~in ~~intend~~which tothe ~~make~~Partnership ~~mortgage~~invests ~~loans~~will atprimarily ~~usurious~~involve ~~rates~~rental of ~~interest~~that property to tenants. The ~~Uncertainties~~financial failure of a tenant resulting in ~~determining~~ the ~~legality~~termination of ~~interest~~their ~~rates~~lease ~~and~~might ~~other~~cause ~~borrowing~~a ~~charges~~reduction ~~under~~in ~~some~~the ~~statutes~~cash ~~could~~flow ~~result~~to inthe ~~inadvertent~~Partnership. If ~~violations~~a lease is terminated, inthere ~~which~~is ~~case~~no assurance that the Partnership ~~could~~will ~~incur~~be able to find a new tenant for the ~~penalties~~property ~~mentioned~~on ~~above~~terms as favorable to the Partnership as those from the prior tenant. Investments in hotels are subject to additional risk from the daily turnover and fluctuating occupancy rates of hotel rooms and the absence of long-term tenants.

~~3. Risks with Participations.~~ The Partnership may seek to invest in mortgage loans and Leasebacks with Participations, which will provide the Partnership with both fixed interest and additional interest based upon gross revenues, sale proceeds, and/or other variable amounts. If the interest income received by the Partnership is based, in part, on a percentage of the gross revenues or sale proceeds of the underlying property, the Partnership’s ~~income~~properties will ~~depend~~also onbe ~~the~~subject ~~success~~to in the ~~leasing~~risk of ~~the~~loss ~~underlying~~due ~~property,~~to ~~the~~certain ~~management~~types ~~and operation~~ of ~~such~~ property bydamage ~~the~~(such borrower or lessee and upon the market value of the property upon ultimate disposition. If the Partnership negotiates a mortgage loan with a lower fixed interest rate and an additional percentage of the gross revenues or eventual sale proceeds of the underlying property, and the underlying property fails to generate increased revenues or to appreciate, the Partnership will have foregone a potentially greater fixed return without receiving the benefit of appreciation. State laws may limit Participations. In the event of the borrower’s bankruptcy, it is possible that as afrom ~~result~~nuclear ofpower ~~the~~plant ~~Partnership’s~~accidents ~~interest in the gross revenues or sale proceeds, a court could treat the Partnership as a partner or joint venturer with the borrower,~~ and ~~the~~wars) ~~Partnership~~which ~~could~~are ~~lose~~either ~~the~~uninsurable ~~priority its security interest would have been given,~~ or benot ~~liable~~economically ~~for the borrower’s debts~~insurable. ~~The Partnership will structure its Participations to avoid being characterized as a partner or joint venturer with the borrower.~~

42. Risks ~~with~~of ~~Sale-Leaseback~~Mortgage ~~Transactions~~Loan Investments. ~~Leaseback~~The ~~transactions typically~~Partnership’s ~~involve~~mortgage ~~the~~loan ~~acquisition~~investments ofwill ~~land~~be ~~and~~subject ~~improvements~~to ~~thereon and~~ the ~~leaseback~~risk of ~~such~~default ~~land~~by ~~and improvements to~~ the ~~seller~~borrowers. In orthis ~~another~~event ~~party. The~~the ~~value~~Partnership ofwould have the ~~land~~added ~~and~~responsibility ~~improvements~~of ~~will~~foreclosing ~~depend,~~on inor ~~large~~pursuing ~~part,~~other remedies on the ~~performance~~underlying ~~and financial~~properties ~~stability~~to ofprotect the ~~lessee~~value ~~and~~of its ~~tenants,~~mortgage ~~if any~~loans. ~~The~~A ~~tenants~~borrower’s ~~leases~~ability ~~may~~to ~~have~~meet ~~shorter~~its ~~terms~~mortgage ~~than~~loan payments will be dependent upon the ~~leaseback~~risks generally inherent to the ownership of real property. ~~Therefore,~~ Mortgage loans made by the ~~lessee’s~~Partnership ~~future~~will ~~ability~~generally tonot ~~meet~~be ~~payment~~personal obligations toof the borrowers. The Partnership will ~~depend~~only rely on ~~its ability~~the tovalue ~~obtain renewals~~ of ~~such~~the ~~leases~~underlying orproperty ~~new~~for ~~leases~~its ~~upon~~security. Mechanic's, ~~satisfactory~~material ~~terms~~men’s, government, and ~~the~~other ~~ability~~liens ofmay ~~the~~have ~~tenants~~or toobtain ~~meet~~priority ~~their~~over ~~rental~~the ~~payments~~Partnership’s tosecurity interest in the ~~lessee~~property.

AnIn ~~affiliate~~addition, of the Partnership’s ~~investigates~~mortgage ~~the~~loan ~~stability~~investments ~~and~~will ~~creditworthiness~~be ofsubject ~~lessees~~to inprepayment ~~all commercial properties the Partnership may acquire, including leaseback transactions~~risks. ~~However,~~If ~~a lessee in a leaseback transaction may have few, if any, assets. The Partnership will therefore rely for its security on~~ the ~~value~~terms of the ~~land~~mortgage ~~and~~loans ~~improvements. When~~permit, ~~the Partnership’s~~mortgagors ~~leaseback~~may ~~interest~~prepay ~~is subordinate to other interests in~~ the ~~land or improvements~~loans, ~~such~~thus aspossibly achanging ~~first mortgage or other lien,~~ the Partnership’s ~~leaseback will be subject to greater risk~~return. ~~A default by a lessee or other premature termination of the leaseback may~~

11Junior mortgage loans (including wraparound mortgage loans) will be subject to greater risk than first mortgage loans, since they will be subordinate to liens of senior mortgagees. In the event a default occurs on a senior mortgage, the Partnership may be

~~Table of Contents~~10

~~result~~Table ~~in the Partnership being unable to recover its investment unless the property is sold or leased on favorable terms. The ability~~ of the lessee to meet its obligations under the leaseback, and the value of a property, may be affected by a number of factors inherent in the ownership of real property which are described above. Furthermore, the long-term nature of a leaseback may, in the future, result in the Partnership receiving lower average annual rentals. However, this risk may be lessened if the Partnership obtains Participations in connection with its Leasebacks. Contents

~~Item~~required 1Bto make payments or take other actions to cure the default (if it has the right to do so) in order to prevent foreclosure on the senior mortgage and possible loss of all or portions of the Partnership’s investment. ~~Unresolved~~“Due ~~Staff~~on ~~Comments~~sale” clauses included in some senior mortgages, accelerating the amount due under the senior mortgage in the case of sale of the property, may be applied to the sale of the property upon foreclosure by the Partnership of its junior mortgage loan.

~~None~~The risk of lending on real estate increases as the proportion of the amount of the mortgage loan bears to the fair market value of the real estate increases. The Partnership usually does not make mortgage loans of over 80% of the estimated or appraised value of the property that secures the loan. There can be no assurance, that in the event of a default, the Partnership will realize an amount equal to the estimated or appraised value of the property on which a mortgage loan was made.

~~Item~~Mortgage 2loans made by the Partnership may be subject to state usury laws. These ~~Properties~~laws impose limits on interest charges and possible penalties for violation of those limits, including restitution of excess interest, unenforceability of debt, and treble damages. The Partnership does not intend to make mortgage loans at usurious rates of interest. Uncertainties in determining the legality of interest rates and other borrowing charges under some statutes could result in inadvertent violations, in which case the Partnership could incur the penalties mentioned above.

~~Not~~3. ~~Applicable~~Risks with Participations. The Partnership may seek to invest in mortgage loans and leasebacks with participations, which will provide the Partnership with both fixed interest and additional interest based upon gross revenues, sale proceeds, and/or other variable amounts. If the interest income received by the Partnership is based, in part, on a percentage of the gross revenues or sale proceeds of the underlying property, the Partnership’s income will depend on the success in the leasing of the underlying property, the management and operation of such property by the borrower or lessee and upon the market value of the property upon ultimate disposition. If the Partnership negotiates a mortgage loan with a lower fixed interest rate and an additional percentage of the gross revenues or eventual sale proceeds of the underlying property, and the underlying property fails to generate increased revenues or to appreciate, the Partnership will have foregone a potentially greater fixed return without receiving the benefit of appreciation. State laws may limit participations. In the event of the borrower’s bankruptcy, it is possible that as a result of the Partnership’s interest in the gross revenues or sale proceeds, a court could treat the Partnership as a partner or joint venturer with the borrower, and the Partnership could lose the priority its security interest would have been given, or be liable for the borrower’s debts. The Partnership will structure its participations to avoid being characterized as a partner or joint venturer with the borrower.

~~Item~~4. 3Risks with Sale-Leaseback Transactions. Leaseback ~~Legal~~transactions ~~Proceedings~~typically involve the acquisition of land and improvements thereon and the leaseback of such land and improvements to the seller or another party. The value of the land and improvements will depend, in large part, on the performance and financial stability of the lessee and its tenants, if any. The tenants’ leases may have shorter terms than the leaseback. Therefore, the lessee’s future ability to meet payment obligations to the Partnership will depend on its ability to obtain renewals of such leases or new leases upon satisfactory terms and the ability of the tenants to meet their rental payments to the lessee.

~~None~~An affiliate of the Partnership investigates the stability and creditworthiness of lessees in all commercial properties the Partnership may acquire, including leaseback transactions. However, a lessee in a leaseback transaction may have few, if any, assets. The Partnership will therefore rely for its security on the value of the land and improvements. When the Partnership’s leaseback interest is subordinate to other interests in the land or improvements, such as a first mortgage or other lien, the Partnership’s leaseback will be subject to greater risk. A default by a lessee or other premature termination of the leaseback may result in the Partnership being unable to recover its investment unless the property is sold or leased on favorable terms. The ability of the lessee to meet its obligations under the leaseback, and the value of a property, may be affected by a number of factors inherent in the ownership of real property which are described above. Furthermore, the long-term nature of a leaseback may, in the future, result in the Partnership receiving lower average annual rentals. However, this risk may be lessened if the Partnership obtains Participations in connection with its leasebacks.

Item 4 1B. ~~Mine~~Unresolved ~~Safety~~Staff ~~Disclosures~~Comments

~~Not Applicable~~None.

12Item 2. Properties

~~Table~~Not ~~of Contents~~Applicable.

~~PART~~Item 3. IILegal Proceedings

~~Item 5~~None. ~~Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities~~

~~Owners of the Contracts may participate by allocating all or part of the net premiums or purchase payments to the Real Property Account~~Item 4. ~~Contract~~Mine ~~values~~Safety vary with the performance of the Real Property Account’s investments through the Partnership. Participating interests in the Real Property Account are not traded in any public market; therefore a discussion of market information is not relevant. Disclosures

~~As of December 31, 2014, approximately 1,803 contract owners of record held investments in the Real Property Account.~~ 11

~~Item~~Table 6.of ~~Selected Financial Data~~Contents

~~The~~Not ~~Prudential Variable Contract Real Property Partnership Results of Operations and Financial Position are summarized as follows:~~ Applicable.

~~RESULTS OF OPERATIONS:~~12

	Item 6. Selected Financial Data
	Year Ended December 31,
	2014		2013		2012		2011		2010
RESULTS OF OPERATIONS:
Total Investment Income	$	25,546,941	$	28,525,763	$	26,066,202	$	24,372,936	$	24,928,302
Net Investment Income	$	7,474,906	$	9,574,870	$	8,712,225	$	8,559,353	$	8,371,136
Net Recognized and Unrealized Gain (Loss) on Real Estate Investments		6,735,778		9,086,821		3,880,392		14,773,499		8,033,579
Net Increase in Net Assets Resulting From Operations	$	14,210,684	$	18,661,691	$	12,592,617	$	23,332,852	$	16,404,715
FINANCIAL POSITION:
	December 31,
	2014		2013		2012		2011		2010
Total Assets	$	270,945,663	$	258,378,190	$	246,011,495	$	212,980,362	$	202,789,389
Investment Level Debt	$	70,006,898	$	59,223,759	$	56,775,225	$	33,464,270	$	30,565,616

Table of Contents

13PART II

~~Table~~Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of ~~Contents~~Equity Securities

~~ITEM~~Owners 7of the contracts may participate by allocating all or part of the net premiums or purchase payments to the Real Property Account. ~~MANAGEMENT~~Contract values vary with the performance of the Real Property Account’Ss ~~DISCUSSION~~investments ~~AND~~through ~~ANALYSIS~~the OFPartnership. ~~FINANCIAL~~Participating ~~CONDITION~~interests ~~AND~~in ~~RESULTS~~the OFReal ~~OPERATIONS~~Property Account are not traded in any public market; therefore a discussion of market information is not relevant.

~~All~~As of ~~the~~December 31, ~~assets~~2015, ofapproximately ~~the Real Property Account are invested in the Partnership. Accordingly~~1,748 ~~the liquidity~~contract ~~and~~owners ~~capital~~of ~~resources~~record ~~and~~held ~~results~~investments ofin ~~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 of New Jersey, or collectively, the “General Partners”.

~~The~~Item 6. ~~following~~Selected ~~discussion~~Financial and analysis of the liquidity and capital resources and results of operations of the Partnership should be read in conjunction with the audited financial statements of the Real Property Account and the audited consolidated financial statements of the Partnership and the related Notes included in this filing. Data

~~(a)~~The ~~Liquidity~~Partnership Results of Operations and ~~Capital~~Financial ~~Resources~~Position are summarized as follows:

AsRESULTS ofOF December 31, 2014, the Partnership’s liquid assets, consisting of cash and cash equivalents, were approximately $32.3 million, a decrease of approximately $11.6 million from $43.9 million as of December 31, 2013. The decrease was primarily due to the following activities (a) $10.0 million distribution to the general partners’ controlling interest; (b) $9.3 million of equity for an acquisition of a grocery-anchored retail center located in Norcross, Georgia; (c) $8.3 million for the acquisition of a grocery-anchored retail center located in North Fort Myers, Florida; (d) $4.4 million paid for capital improvements; (e) $1.0 million of principal payments made on financed properties; and (f) net distributions to non-controlling interests of $1.2 million. The $4.4 million payment for capital improvements included the following itemsOPERATIONS: (a) $1.7 million for space renovations and leasing costs at the retail property in Dunn, North Carolina; (b) $0.8 million for space renovations at the office property in Lisle, Illinois; (c) $0.5 million for unit upgrades at one of the apartment properties in Seattle, Washington; (d) $0.3 million for leasing costs at the office property in Beaverton, Oregon; (e) $0.3 million for unit upgrades at the apartment property in Charlotte, North Carolina; and $0.8 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 $7.8 million; (b) $1.8 million of additional proceeds received on the loan secured by one of the properties in Seattle, Washington; and (c) $13.0 million of proceeds from the sale of the hotel located in Lake Oswego, Oregon.

Sources of 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 December 31, 2014, approximately 11.9% of the Partnership’s total assets consisted of cash and cash equivalents.



	Year Ended December 31,
RESULTS OF OPERATIONS	2015		2014		2013		2012		2011
Total Investment Income	$	22,394,116	$	25,546,941	$	28,525,763	$	26,066,202	$	24,372,936
Net Investment Income	$	6,711,044	$	7,474,906	$	9,574,870	$	8,712,225	$	8,559,353
Net Recognized and Unrealized Gain (Loss) on Investments	12,722,180		6,735,778		9,086,821		3,880,392		14,773,499
Net Increase (Decrease) in Net Assets Resulting From Operations	$	19,433,224	$	14,210,684	$	18,661,691	$	12,592,617	$	23,332,852

FINANCIAL POSITION:
	December 31,
	2015		2014		2013		2012		2011
Total Assets	$	282,846,397	$	270,945,663	$	258,378,190	$	246,011,495	$	212,980,362
Investment Level Debt	$	66,598,081	$	70,006,898	$	59,223,759	$	56,775,225	$	33,464,270

14 13

Table of Contents

~~(b)~~ITEM 7. ~~Results~~MANAGEMENT’S ofDISCUSSION ~~Operations~~AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

~~The~~All ~~following~~of isthe aassets ~~comparison~~ of the Real Property Account are invested in the Partnership’s. Accordingly, the liquidity and capital resources and results of operations for the ~~years~~Real ~~ended~~Property ~~December 31~~Account are contingent upon those of the Partnership. Therefore, ~~2014~~this management’s discussion and ~~2013~~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 of New Jersey, or collectively, the “General Partners”.

~~Net~~The ~~investment~~following ~~income~~discussion ~~overview~~and analysis of the liquidity and capital resources and results of operations of the Partnership should be read in conjunction with the audited financial statements of the Real Property Account and the audited consolidated financial statements of the Partnership and the related Notes included in this filing.

~~The Partnership’s net investment income attributable to the general partners’ controlling interest for the year ended December 31, 2014 was approximately $6.8 million,~~ (a) ~~decrease~~Liquidity of approximately $2.3 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 $2.9 million in the office sector investments’ and aCapital decrease of $0.3 million in the hotel property’s net investment income from the prior year period. Partially offsetting these decreases was an increase of approximately $0.5 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 $0.3 million from the prior year period in net investment income attributable to the general partners’ controlling interest from the apartment sector. Resources

~~Valuation~~As ~~overview~~of December 31, 2015, the Partnership’s liquid assets, consisting of cash and cash equivalents, were approximately $14.4 million, a decrease of approximately $17.9 million from $32.3 million as of December 31, 2014. The decrease was primarily due to the following activities: (a) $10.3 million of equity for an acquisition of an apartment complex located in Maplewood, New Jersey; (b) $6.1 million of equity for an acquisition of an apartment development located in Chicago, Illinois; (c) $5.0 million distribution to the General Partners’ controlling interest; (d) $1.1 million of principal payments on financed properties; (e) $12.6 million for a loan payoff at the retail property in Roswell, Georgia; (f) $0.3 million in distribution to joint venture partners; and (g) $2.0 million paid for capital improvements. The $2.0 million payment for capital improvements included the following items: (a) $1.0 million for leasing expenses at the office property in Lisle, Illinois; (b) $0.2 million for unit upgrades at one of the apartment properties in Seattle, Washington; (c) $0.2 million for space renovations at the retail property in Hampton, Virginia; (d) $0.2 million for unit upgrades at the apartment property in Charlotte, North Carolina; and (e) $0.4 million for capital improvements and transaction costs associated with leasing expenses at various properties. Primarily offsetting the decreases were increases from the following activities: (a) net cash flow generated from property operations of $6.3 million; and (b) $12.7 million of proceeds from the sale of the office in Beaverton, Oregon.

~~The~~Sources ~~Partnership~~of ~~recorded~~liquidity aincluded net ~~recognized~~cash ~~gain~~flow ~~attributable~~from toproperty ~~the~~operations ~~general~~and ~~partners’ controlling~~ interest offrom ~~$0.5~~cash ~~million for the year ended December 31, 2014, compared to $0~~equivalents.1 The ~~million~~Partnership ofuses ~~recognized~~cash ~~gain~~ for ~~the~~its ~~prior~~real ~~year~~estate ~~period.~~investment ~~The~~activities ~~net~~and ~~recognized~~for ~~gain~~distributions ~~attributable~~ to ~~the~~its ~~general~~General ~~partners’~~Partners. As ~~controlling interest was due to the sale~~ of ~~the~~December ~~hotel~~31, ~~property in Lake Oswego~~2015, ~~Oregon.~~ ~~The Partnership recorded a net unrealized gain attributable to the general partners’ controlling interest of~~ approximately $5.51% ~~million for the year ended December 31, 2014. This is compared with a net unrealized gain attributable to the general partners’ controlling interest~~ of ~~approximately $7.4 million for~~ the ~~prior year period. The unrealized gains attributable to the general partners~~Partnership’s ~~controlling~~total ~~interest~~assets ~~for~~consisted ~~the~~of ~~year~~cash ~~ended December 31, 2014 were primarily due to valuation increases in the retail, apartment,~~ and ~~office~~cash ~~sector investments~~equivalents.

15(b) Results of Operations

~~Table~~The following is a comparison of ~~Contents~~the Partnership’s results of operations for the years ended December 31, 2015 and 2014.

~~The~~Net ~~following table 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 or~~ income/(~~losses~~loss) ~~attributable~~overview ~~to the general partners’ controlling interest for the years ended December 31, 2014 and 2013.~~

	Year Ended December 31,
	2014			2013
Net Investment Income:
Office properties	$	902,364		$	3,753,640
Apartment properties		3,462,902			3,204,582
Retail properties		4,512,048			3,983,771
Hotel property		911,295			1,166,789
Other (including interest income, investment mgt fee, etc.)		(2,959,125	)		(2,983,397	)
Total Net Investment Income	$	6,829,484		$	9,125,385
Net Recognized Gain (Loss) on Real Estate Investments:
Office Building	$	—		$	(230,171	)
Apartment Properties		—			373,354
Hotel		476,599			—
Net Recognized Gain (Loss) on Real Estate Investments	$	476,599		$	143,183
Net Unrealized Gain (Loss) on Real Estate Investments:
Office properties	$	1,123,467		$	944,753
Apartment properties		2,815,220			5,563,254
Retail properties		1,598,996			2,300,802
Hotel property		—			(1,426,177	)
Net Unrealized Gain (Loss) on Real Estate Investments	$	5,537,683		$	7,382,632
Net Recognized and Unrealized Gain (Loss) on Real Estate Investments	$	6,014,282		$	7,525,815

The Partnership’s net investment income attributable to the General Partners’ controlling interest for the year ended December 31, 2015 was approximately $6.1 million, a decrease of approximately $0.8 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 $1.3 million in the office sector investments’ and a decrease of $1.0 million in the hotel property’s net investment income from the prior year period. Partially offsetting the decrease was an increase of approximately $1.1 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 $0.7 million from the prior year period in net investment income attributable to the General Partners’ controlling interest from the apartment sector. Additionally, there was an increase of approximately $0.3 million of other expense as compared to prior period.

16Valuation overview

~~Table~~The Partnership recorded a net recognized gain attributable to the General Partners’ controlling interest of ~~Contents~~$0.1 million for the year ended December 31, 2015, compared to $0.5 million of recognized gain for the prior year period. A net recognized gain of $0.1 million was attributable to the sale of one office investment located in Beaverton, Oregon. The Partnership recorded a net unrealized gain attributable to the General Partners’ controlling interest of approximately $10.6 million for the year ended December 31, 2015. This is compared with a net unrealized gain attributable to the General Partners’ controlling interest of approximately $5.5 million for the prior year period. The unrealized gains attributable to the General Partners’ controlling interest for the year ended December 31, 2015 were primarily due to valuation increases in the retail and apartment sector investments. Partially offsetting the unrealized gain was an unrealized loss of approximately $1.2 million from the office sector.

~~OFFICE PROPERTIES~~ 14

Year Ended December 31,	Net InvestmentIncome/(Loss)2014		Net InvestmentIncome/(Loss)2013		UnrealizedGain/(Loss)2014			Recognized/UnrealizedGain/(Loss)2013			Occupancy2014			Occupancy2013
Property
Lisle, IL	$	323,305	$	705,518	$	(852,520	)	$	(1,433,571	)		38	%		65	%
Brentwood, TN #1 (1)		15,096		1,197,721		—			(100,145	)		N/A			N/A
Beaverton, OR		546,941		617,853		1,975,987			2,378,324			100	%		91	%
Brentwood, TN #2 (1)		17,022		1,232,548		—			(130,026	)		N/A			N/A
	$	902,364	$	3,753,640	$	1,123,467		$	714,582

Table of Contents

~~(1)~~ The ~~Brentwood,~~following ~~Tennessee~~table ~~properties~~presents ~~were~~a ~~sold~~comparison onof ~~December~~the ~~12,~~Partnership’s ~~2013,~~sources ~~which~~of isnet ~~reflected~~investment asincome aattributable to the General Partners’ controlling interest and net recognized ~~loss~~and unrealized gains or (losses) attributable to the General Partners’ controlling interest for the years ended December 31, 2015 and 2014.

Net investment income



	Year Ended December 31,
	2015			2014
Net Investment Income:
Office properties	$	(386,446	)	$	902,364
Apartment properties	4,167,541			3,462,902
Retail properties	5,643,088			4,512,048
Hotel property	(55,098		)	911,295
Other (including interest income, investment management fee, etc.)	(3,300,701		)	(2,959,125		)
Total Net Investment Income	$	6,068,384		$	6,829,484
Net Recognized Gain (Loss) on Real Estate Investments:
Office properties	$	125,879		$	—
Hotel property	—			476,599
Net Recognized Gain (Loss) on Real Estate Investments	$	125,879		$	476,599
Net Unrealized Gain (Loss) on Real Estate Investments:
Office properties	$	(1,179,179	)	$	1,123,467
Apartment properties	6,597,881			2,815,220
Retail properties	5,203,865			1,598,996
Net Unrealized Gain (Loss) on Real Estate Investments	10,622,567			5,537,683
Net Recognized and Unrealized Gain (Loss) on Real Estate Investments	$	10,748,446		$	6,014,282

Net investment income attributable to the general partners’ controlling interest for the Partnership’s office properties was approximately $0.9 million for the year ended December 31, 2014, which represents a decrease of approximately $2.8 million from the prior year period, primarily due to the sale of the properties in Brentwood, Tennessee in December 2013. These properties’ results of operations for the year ended December 31, 2014 represent post-close revenues. In addition, a decrease in net investment income was also attributable to reduced rents and loss of rental income from lower occupancy at the property in Lisle, Illinois. 15

~~Recognized~~Table ~~and~~of ~~Unrealized gain/(loss)~~ Contents

~~The~~OFFICE office properties owned by the Partnership recorded a net unrealized gain attributable to the general partners’ controlling interest of approximately $1.1 million for the year ended December 31, 2014, compared with a net recognized and unrealized gain attributable to the general partners’ controlling interest of approximately $0.7 million from the prior year period. The net unrealized gain attributable to the general partners’ controlling interest for the year ended December 31, 2014 was primarily due to gain on the property located in Beaverton, Oregon due to the renewal and expansion of the anchor tenant. Partially offsetting the net unrealized gain was an unrealized loss due to lower occupancy at the property in Lisle, Illinois. PROPERTIES



Year Ended December 31,	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	$	(141,037	)	$	323,305	$	(1,179,179	)	$	(852,520	)	55	%	38	%
Brentwood, TN #1 ⁽¹⁾	—			15,096		—			—			N/A		N/A
Beaverton, OR ⁽²⁾	(245,409		)	546,941		125,879			1,975,987			N/A		100	%
Brentwood, TN #2 ⁽¹⁾	—			17,022		—			—			N/A		N/A
	$	(386,446	)	$	902,364	$	(1,053,300	)	$	1,123,467

~~Table~~(1) The ofBrentwood, ~~Contents~~Tennessee properties were sold on December 12, 2013. The net investment income in 2014 represents post closing accrual write-offs.

~~APARTMENT~~(2) The ~~PROPERTIES~~Beaverton, Oregon property was sold on June 8, 2015.

Year Ended December 31,	Net InvestmentIncome/(Loss)2014			Net InvestmentIncome/(Loss)2013			UnrealizedGain/(Loss)2014		Recognized/UnrealizedGain/(Loss)2013		Occupancy2014			Occupancy2013
Property
Raleigh, NC (1)	$	(64,926	)	$	(4,361	)	$	—	$	373,354		N/A			N/A
Austin, TX		1,470,249			1,494,285			41,446		742,449		96	%		97	%
Charlotte, NC		903,919			843,379			1,032,549		1,443,837		96	%		99	%
Seattle, WA #1		523,967			413,665			908,465		1,389,258		83	%		85	%
Seattle, WA #2		629,693			457,614			832,760		1,987,710		91	%		95	%
	$	3,462,902		$	3,204,582		$	2,815,220	$	5,936,608

Net investment income/(loss)

~~(1)~~Net ~~The~~investment ~~Raleigh,~~income ~~North~~attributable ~~Carolina~~to ~~property~~the General Partners’ controlling interest for the Partnership’s office properties was ~~sold~~a onloss ~~February~~of 25approximately $0.4 million for the year ended December 31, ~~2013~~2015, which ~~was~~represents ~~reflected~~a asdecrease aof ~~recognized~~approximately ~~gain~~$1.3 million from the prior year period. The decrease in net investment income is 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.

~~Net~~Recognized ~~investment~~and ~~income~~Unrealized gain/(loss)

~~Net~~The ~~investment~~office ~~income~~properties ~~attributable~~owned toby the ~~general~~Partnership ~~partners’~~recorded ~~controlling~~a ~~interest~~net ~~for~~recognized and unrealized loss attributable to the ~~Partnership~~General Partners’s ~~apartment~~controlling ~~properties~~interest ~~was~~ of approximately $31.51 million for the year ended December 31, ~~2014~~2015, ~~which~~compared ~~represents~~with ana ~~increase~~net unrealized gain attributable to the General Partners’ controlling interest of approximately $01.31 million from the prior year period. The ~~This~~net ~~increase~~unrealized loss attributable to the General Partners’ controlling interest for the year ended December 31, 2015 was primarily due to increased ~~rents~~investment ~~from~~rates ~~unit~~reflecting ~~renovations~~market activity at the ~~properties~~ property in ~~Seattle~~Lisle, ~~Washington~~Illinois. ~~and~~Partially ~~Charlotte,~~offsetting ~~North~~the ~~Carolina~~loss was a recognized gain on the sale of the property in Beaverton, Oregon.

~~Recognized and Unrealized gain/(loss)~~ 16

~~The~~Table ~~apartment properties owned by the Partnership recorded a net unrealized gain attributable to the general partners’ controlling interest~~ of approximately $2.8 million for the year ended December 31, 2014, compared with a net recognized and unrealized gain attributable to the general partners’ controlling interest of approximately $5.9 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. Contents

18APARTMENT PROPERTIES



Year Ended December 31,	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 ⁽²⁾	$	—	$	(64,926	)	$	—	$	—	N/A		N/A
Austin, TX	1,435,683		1,470,249			2,787,287		41,446		96	%	96	%
Charlotte, NC	935,383		903,919			923,823		1,032,549		98	%	96	%
Seattle, WA #1	589,338		523,967			97,912		908,465		95	%	83	%
Seattle, WA #2	729,934		629,693			2,723,411		832,760		93	%	91	%
Maplewood, NJ ⁽¹⁾	477,203		—			65,448		—		80	%	N/A
	$	4,167,541	$	3,462,902		$	6,597,881	$	2,815,220

~~RETAIL~~(1) The ~~PROPERTIES~~Maplewood, New Jersey property was acquired on April 2, 2015.

Year Ended December 31,	NetInvestmentIncome/(Loss)2014		NetInvestmentIncome/(Loss)2013		UnrealizedGain/(Loss)2014			UnrealizedGain/(Loss)2013			Occupancy2014			Occupancy2013
Property
Hampton, VA	$	1,296,785	$	1,140,872	$	1,019,514		$	991,029			95	%		96	%
Ocean City, MD		878,464		828,288		341,958			643,746			96	%		96	%
Westminster, MD		1,326,415		1,280,748		1,135,613			2,032,113			100	%		100	%
Dunn, NC		22,584		283,066		(1,232,496	)		170,369			48	%		35	%
Roswell, GA		518,444		450,797		314,679			(1,536,455	)		94	%		96	%
North Fort Myers, FL		389,340		—		19,728			—			85	%		N/A
Norcross, GA		80,016		—		—			—			100	%		N/A
	$	4,512,048	$	3,983,771	$	1,598,996		$	2,300,802

⁽²⁾ The Raleigh, North Carolina property was sold on February 25, 2013. The net investment loss in 2014 represents post closing accrual write-offs.

Net investment income/(loss)

Net investment income attributable to the ~~general~~General ~~partners~~Partners’ controlling interest for the Partnership’s ~~retail~~apartment properties was approximately $4.52 million for the year ended December 31, ~~2014~~2015, which represents an increase of approximately $0.57 million from the prior year period. The increase ~~in net investment income attributable to the general partners’ controlling interest for the year ended December 31, 2014~~ was ~~largely~~primarily due to the ~~additional~~acquisition ~~income~~of ~~provided by~~ the ~~properties~~apartment incomplex ~~North Fort Myers, Florida and Norcross, Georgia that were acquired~~ in ~~March~~Maplewood, ~~2014~~New ~~and December~~Jersey, ~~2014, respectively. In addition, an increase in net investment income was also attributable to~~ increased rents at ~~the~~property ~~properties~~#2 in ~~Ocean~~Seattle, ~~City~~Washington, ~~Maryland~~ and ~~Westminster,~~increased ~~Maryland.~~occupancy ~~Partially offsetting the increase was a decrease in net investment income~~ at ~~the~~ property #1 in ~~Dunn~~ Seattle, ~~North Carolina as result of increased operating expenses~~Washington.

Recognized and Unrealized gain/(loss)

The ~~retail~~apartment properties owned by the Partnership recorded a net unrealized gain attributable to the ~~general~~General ~~partners~~Partners’ controlling interest of approximately $16.6 million for the year ended December 31, ~~2014~~2015, compared with a net unrealized gain attributable to the ~~general~~General ~~partners~~Partners’ controlling interest of approximately $2.38 million from the prior year period. These ~~The~~gains ~~net~~were ~~unrealized gain attributable to the general partners’ controlling interest for the year ended December 31, 2014 was~~ primarily due to ~~unrealized~~favorable ~~gains~~market leasing assumptions at the properties in ~~Hampton~~Seattle, ~~Virginia~~Washington, ~~Ocean City~~Austin, ~~Maryland~~Texas, ~~Westminster, Maryland~~ and ~~Roswell~~Charlotte, ~~Georgia~~ due to lower investment rates. Investment rates include direct and terminal capitalization rates, and discount rates, which reflect investors’ yield requirements on investments. Partially offsetting the net unrealized gain was an unrealized loss at the property in Dunn, North Carolina ~~due to an increase in anticipated capital expenditures~~.

19 17

Table of Contents

~~HOTEL~~RETAIL ~~PROPERTY~~PROPERTIES

Year Ended December 31,	Net InvestmentIncome/(Loss)~~2014~~2015		Net InvestmentIncome/(Loss)~~2013~~2014		~~RecognizedGain~~UnrealizedGain/(Loss)~~2014~~2015			UnrealizedGain/(Loss)~~2013~~2014			~~Occupancy2014~~Occupancy2015		Occupancy2014	~~Occupancy2013~~
Property
Lake Oswego, OR (1)	$	911,295	$	1,166,789	$	476,599		$	(1,426,177	)		N/A			91	%
Hampton, VA	$	1,418,163	$	1,296,785	$	774,336		$	1,019,514		96	%	95	%
Ocean City, MD	914,371		878,464		638,666			341,958			96	%	96	%
Westminster, MD	1,349,841		1,326,415		1,394,504			1,135,613			100	%	100	%
Dunn, NC	120,633		22,584		(468,836		)	(1,232,496		)	26	%	48	%
Roswell, GA	567,590		518,444		1,153,211			314,679			94	%	94	%
North Fort Myers, FL	506,480		389,340		694,700			19,728			85	%	85	%
Norcross, GA	766,010		80,016		1,017,284			—			100	%	100	%
	$	5,643,088	$	4,512,048	$	5,203,865		$	1,598,996

~~(1)~~Net ~~The~~investment ~~Lake Oswego, Oregon property was sold on October 29, 2014, which was reflected as a recognized gain.~~income

Net investment income attributable to the General Partners’ controlling interest for the Partnership’s retail properties was approximately $5.6 million for the year ended December 31, 2015, which represents an increase of approximately $1.1 million from the prior year 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. Additional increases of $0.2 million were due to decreased operating expenses by the property in Dunn, North Carolina and increased rents at the property in Hampton, Virginia, respectively.

~~Net~~Unrealized ~~investment~~gain/(loss) income attributable to the general partners’ controlling interest for the Partnership’s hotel property was $0.9 million for the year ended December 31, 2014, which represents a decrease of approximately $0.3 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.

~~Recognized~~The ~~and~~retail ~~Unrealized~~properties owned by the Partnership recorded a net unrealized gain~~/(loss)~~ attributable to the General Partners’ controlling interest of approximately $5.2 million for the year ended December 31, 2015, compared with a net unrealized gain attributable to the General Partners’ controlling interest of approximately $1.6 million from the prior year period. The net unrealized gain attributable to the General Partners’ controlling interest for the year ended December 31, 2015 was primarily due to favorable market leasing assumptions at the properties in Hampton, Virginia, Ocean City, Maryland, Roswell, Georgia, and Westminster, Maryland. Additional gains were provided by decreased operating expenses and decreased investment rates at the property in North Fort Myers, Florida, as well as appreciation from the property in Norcross, Georgia, which was not held last year. Investment rates include direct and terminal capitalization rates, and discount rates, which reflect investors’ yield requirements on investments.

The Partnership’s hotel property recorded a recognized gain attributable to the general partners’ controlling interest of approximately $0.5 million for the year ended December 31, 2014, compared with an unrealized loss attributable to the general partners’ controlling interest of approximately $1.4 million for the prior year period. The recognized gain was due to the sale of the asset which occurred on October 29, 2014. 18

~~Other~~Table of Contents

~~Other~~HOTEL ~~net~~PROPERTY investment expense mainly includes investment management fees, other portfolio level expenses and interest income. Other net investment expense attributable to the general partners’ controlling interest was approximately $3.0 million for year ended December 31, 2014, which remained relatively unchanged from the prior year period.



Year Ended December 31,	Net Investment Income/(Loss) 2015			Net Investment Income/(Loss) 2014		Unrealized Gain/(Loss) 2015		Recognized/Unrealized Gain/(Loss) 2014		Occupancy 2015	Occupancy 2014
Property
Lake Oswego, OR ⁽¹⁾	$	(55,098	)	$	911,295	$	—	$	476,599	N/A	N/A

~~Table~~(1) The ofLake ~~Contents~~Oswego, Oregon property was sold on October 29, 2014. The net investment loss in 2015 represents post closing expenses.

~~(c)~~Net ~~Inflation~~investment income

ANet ~~majority~~investment ofloss attributable to the General Partners’ controlling interest for the Partnership’s ~~leases~~hotel ~~with~~property ~~its~~was ~~commercial~~$0.1 ~~tenants~~million ~~provide~~ for ~~recoveries~~the ofyear ~~expenses~~ended ~~based~~December ~~upon~~31, ~~the~~2015, ~~tenant’s proportionate~~which ~~share~~represents a decrease of, ~~and/or~~approximately ~~increases~~$1.0 ~~in,~~million ~~real~~from ~~estate~~the ~~taxes~~prior ~~and~~year ~~certain~~period. The ~~operating~~decrease ~~costs,~~at ~~which~~the ~~may~~property ~~partially~~in ~~reduce~~Lake ~~the~~Oswego, ~~Partnership’s~~Oregon ~~exposure~~was toa ~~increases~~result inof ~~operating~~the ~~costs~~property ~~resulting~~being ~~from~~sold ~~inflation~~on October 29, 2014.

~~Critical~~Recognized ~~Accounting~~and ~~Policies~~Unrealized gain/(loss)

The ~~preparation~~Partnership ofsold ~~financial statements in conformity with accounting principles generally accepted in~~ the ~~United~~hotel ~~States~~property ofon ~~America,~~October ~~or “U.S. GAAP”~~29, ~~requires~~2014 ~~the~~and ~~application~~did ofnot ~~accounting~~record ~~policies that often involve~~ a ~~significant~~net ~~degree~~unrealized ofor ~~judgment.~~recognized ~~Management~~gain/loss ~~reviews~~attributable ~~critical~~to ~~estimates~~the ~~and~~General ~~assumptions~~Partners’ oncontrolling aninterest ~~ongoing~~for ~~basis.~~the Ifyear ~~management~~ended ~~determines,~~December ~~as a result of its consideration of facts and circumstances~~31, ~~that modifications in assumptions and estimates are appropriate~~2015, ~~results~~compared ofwith ~~operations~~a ~~and~~recognized ~~financial~~gain ~~position~~attributable asto ~~reported in~~ the ~~audited~~General ~~financial~~Partners’ ~~statements~~controlling interest of ~~the~~approximately ~~Real~~$0.5 ~~Property~~million ~~Account~~for ~~and~~ the ~~audited consolidated~~prior ~~financial~~year ~~statements of the Partnership may change significantly~~period.

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

~~Valuation~~Other net investment expense mainly includes investment management fees, other portfolio level expenses and interest income. Other net investment expense attributable to the General Partners’ controlling interest was approximately $3.3 million for year ended December 31, 2015, which represents an increase of ~~Investments~~approximately $0.3 million from the prior year period. The increase is primarily due to investment management fees.

~~Real~~(c) ~~estate~~Inflation 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.

InA ~~general,~~majority ~~fair value estimates are based upon property appraisal reports prepared by independent real estate appraisers (members~~ of the ~~Appraisal~~Partnership’s ~~Institute~~leases orwith anits ~~equivalent~~commercial ~~organization)~~tenants ~~within~~provide afor ~~reasonable~~recoveries ~~amount~~ of ~~time~~expenses ~~following~~based ~~acquisition~~upon of the ~~real~~tenant’s ~~estate~~proportionate ~~and~~share ~~no less frequently than annually thereafter. The Chief Real Estate Appraiser~~ of ~~Prudential Investment Management~~, ~~Inc.~~and/or ~~(“PIM”)~~increases in, ~~which~~real isestate antaxes ~~indirectly~~and ~~owned~~certain ~~subsidiary~~operating ~~of Prudential Financial~~costs, iswhich ~~responsible~~may ~~for~~partially ~~assuring~~reduce ~~that~~ the ~~valuation~~Partnership’s ~~process~~exposure ~~provides independent and reasonable property fair value estimates. An unaffiliated third party has been appointed by PIM~~ to ~~assist~~increases ~~the Chief Real Estate Appraiser~~ in ~~maintaining~~operating ~~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~~resulting ~~may~~from ~~be incurred upon disposition of the real estate investments~~inflation.

~~The~~Critical ~~purpose of an appraisal is to estimate the fair value of real estate as of a specific date. In accordance with Financial~~ Accounting ~~Standards~~Policies 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.

~~Cash~~The ~~equivalents~~preparation ~~include~~of ~~short~~financial ~~term~~statements ~~investments~~in conformity with ~~maturities~~accounting ofprinciples ~~three~~generally ~~months~~accepted in the United States of America, or ~~less~~“U.S. ~~when~~GAAP”, ~~purchased~~requires the application of accounting policies that often involve a significant degree of judgment. Management reviews critical estimates and assumptions on an ongoing basis. If management determines, as a result of its consideration of facts and circumstances, that modifications in assumptions and estimates are appropriate, results of operations and financial position as reported in the financial statements of the Real Property Account and the consolidated financial statements of the Partnership may change significantly.

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

~~The preparation~~Valuation of ~~financial~~Investments 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 audited financial statements of the Real Property Account and the audited 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.

21Real 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.

~~Table of Contents~~19

~~ITEM~~Table ~~7A.~~of ~~Quantitative and Qualitative Disclosures about Market Risk~~Contents

~~Interest~~In ~~Rate~~general, ~~Risk~~fair –value ~~The~~estimates ~~general~~are ~~partners’~~based ~~controlling~~upon ~~interest~~property ~~exposure~~appraisal toreports ~~market~~prepared ~~rate~~by ~~risk~~independent ~~for~~real ~~changes~~estate ~~in interest~~appraisers ~~rates~~(members ~~relates~~of tothe ~~approximately~~Appraisal ~~53.50%~~Institute ofor ~~its~~an ~~investment~~equivalent ~~portfolio~~organization) aswithin ofa ~~December 31,~~reasonable ~~2014,~~amount ~~which~~of ~~consists~~time ~~primarily~~following acquisition of ~~short-term~~the ~~commercial~~real ~~paper~~estate and ~~fixed~~no ~~and~~less ~~variable~~frequently ~~interest~~than ~~rate~~annually ~~debt~~thereafter. The ~~Partnership~~Chief ~~does~~Real ~~not~~Estate ~~use~~Appraiser ~~derivative financial~~of ~~instruments~~Prudential Investment Management, Inc. As(“PIM”, arenamed ~~matter~~PGIM, ofInc. ~~policy~~beginning January 1, ~~the~~2016 ~~Partnership~~), ~~places~~which ~~its~~is ~~investments~~an ~~with~~indirectly ~~high~~owned ~~quality~~subsidiary ~~debt~~of ~~security~~Prudential ~~issuers~~Financial, ~~limits~~is responsible for assuring that the ~~amount~~valuation ofprocess ~~credit~~provides ~~exposure~~independent toand ~~any~~reasonable ~~one~~property ~~issuer,~~fair ~~limits~~value ~~duration~~estimates. An unaffiliated third party has been appointed by ~~restricting~~PIM to assist the ~~term,~~Chief Real Estate Appraiser in maintaining and ~~holds~~monitoring the independence and the accuracy of the appraisal process. The fair value of real estate investments ~~to maturity~~does ~~except~~not ~~under~~reflect ~~unusual~~the ~~circumstances~~transaction sale costs, which may be incurred upon disposition of the real estate investments.

The ~~table~~purpose ~~below~~of ~~presents~~an appraisal is to estimate the ~~amounts~~fair value of real estate as of a specific date. In accordance with FASB authoritative guidance on fair value measurements and ~~related~~disclosures, ~~weighted~~fair ~~interest~~value ~~rates~~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 ~~Partnership’s~~ ~~cash~~conventional approaches to value, ~~cash~~all ~~equivalents~~of which require the exercise of subjective judgment. The three approaches are: (1) current cost of reproducing the real estate less deterioration and ~~short~~functional ~~term~~and ~~investments~~economic obsolescence; (2) discounting a series of income streams and reversion at ~~December 31~~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, ~~2014:~~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.

		Maturity				Estimated Market Value(millions)				AverageInterestRate
Cash and cash equivalents			0-3 months			$	32.3				0.05	%

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

~~The~~Other ~~table~~Estimates below discloses the Partnership’s investment level debt as of December 31, 2014. 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 $ thousands), including current portion	2015			2016			2017			2018			2019			Thereafter			Total			EstimatedFair Value
Weighted Average Fixed Interest Rate		4.83	%		4.72	%		4.67	%		4.61	%		4.58	%		4.32	%		4.62	%
Fixed Rate	$	13,584		$	1,153		$	1,327		$	2,408		$	1,680		$	49,855		$	70,007		$	70,700

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 as of the date of the financial statements of the Real Property Account and the 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.

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. 20

22Table of Contents

~~Table~~ITEM 7A. ofQuantitative ~~Contents~~and Qualitative Disclosures about Market Risk

~~Item~~Interest 8Rate Risk – The General Partners’ controlling interest exposure to market rate risk for changes in interest rates relates to approximately 40.50% ~~Financial~~of ~~Statements~~its investment portfolio as of December 31, 2015, which consists primarily of short-term commercial paper and ~~Supplementary~~fixed ~~Data~~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 ~~financial~~table ~~statements~~below ~~and~~presents ~~supplementary~~the ~~data~~amounts ~~are~~and ~~listed~~related inweighted ~~the~~average ~~accompanying~~interest ~~Index~~rates toof the ~~Financial~~Partnership’s ~~Statements~~cash and ~~Supplementary~~cash ~~Data~~equivalents onat ~~F-1.~~ December 31, 2015:

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure



	Maturity	Estimated Market Value (millions)		Average Interest Rate
Cash and cash equivalents	0-3 months	$	14.4	0.07	%

~~None~~The table below discloses the Partnership’s investment level debt as of December 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.

Item 9A. Controls and Procedures



Investment level debt ($ in thousands), including current portion	2016			2017			2018			2019			2020			Thereafter			Total			Estimated Fair Value
Weighted Average Fixed Interest Rate	4.56		%	4.51		%	4.46		%	4.43		%	4.49		%	4.24		%	4.45		%
Future Annual Principal Payments	$	1,153		$	1,327		$	2,408		$	1,680		$	1,916		$	58,114		$	66,598		$	66,900

~~Management’s~~Credit ~~Annual~~Risk ~~Report~~– onThe ~~Internal~~Partnership ~~Control~~is ~~Over~~exposed ~~Financial~~to ~~Reporting~~market asrisk from tenants. While the Partnership has not experienced any significant credit losses, in the event of ~~December 31~~ significant increases in interest rates and/or an economic downturn, ~~2014~~tenant ~~are~~delinquencies ~~included~~could onincrease ~~Page~~and ~~F-2~~result ofin ~~this~~losses ~~Annual~~to ~~Report~~the onPartnership ~~Form~~and ~~10-K~~the Real Property Account that could adversely affect operating results and liquidity.

In order to ensure that the information we must disclose in our filings with the SEC is recorded, processed, summarized, and reported on a timely basis, the Company’s management, including our Chief Executive Officer and Chief Financial Officer, have reviewed and evaluated the effectiveness of our disclosure controls and procedures, as defined in Exchange Act Rule 13a-15(e), as of December 31, 2014. Based on such evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that, as of December 31, 2014, our disclosure controls and procedures were effective. No change in our internal control over financial reporting, as defined in Exchange Act Rule 13a-15(f), occurred during the quarter ended December 31, 2014, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. As of December 31, 2014, we have adopted Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). 21

~~Item~~Table ~~9B.~~of ~~Other Information~~Contents

~~None~~Item 8. Financial Statements and Supplementary Data

23The financial statements and supplementary data are listed in the accompanying Index to the Financial Statements and Supplementary Data on F-1.

~~Table~~Item 9. ofChanges ~~Contents~~in and Disagreements with Accountants on Accounting and Financial Disclosure

~~PART III~~ None.

Item 10 9A. ~~Directors,~~Controls ~~Executive Officers~~ and ~~Corporate Governance~~Procedures

~~JOHN~~Management’s ~~CHIEFFO,~~Annual ~~Director~~Report ~~and~~on ~~Vice~~Internal ~~President~~Control ~~(current~~Over ~~term expires March 2016) – Vice President, Finance, Individual Life Insurance, Prudential~~ Financial ~~since~~Reporting ~~February 2012. Previously, he served~~ as ~~Vice~~of ~~President and Controller~~December 31, ~~International~~2015 ~~Insurance~~is ~~Business,~~included ~~Prudential~~on ~~Financial~~Page ~~from~~F-2 ~~2006~~of tothis ~~February~~Annual ~~2012.~~Report ~~Age~~on ~~51.~~Form 10-K.

~~YANELA~~In C.order ~~FRIAS~~to ensure that the information we must disclose in our filings with the SEC is recorded, ~~Director~~processed, summarized, and reported on a timely basis, the Company’s management, including our Chief ~~Financial~~Executive Officer and Chief ~~Accounting~~Financial Officer, ~~(current~~have ~~term~~reviewed ~~expires~~and ~~March~~evaluated ~~2016)~~the –effectiveness ~~Vice President,~~of ~~Finance~~our disclosure controls and procedures, ~~Individual~~as ~~Annuities~~defined in Exchange Act Rule 13a-15(e), ~~Prudential~~as ~~Financial~~amended ~~since~~under ~~February~~the ~~2013~~Securities Exchange Act of 1934 (“Exchange Act”), as of December 31, 2015. ~~Previously~~Based on such evaluation, ~~she~~the ~~served~~Chief Executive Officer and Chief Financial Officer have concluded that, as ~~Vice~~of ~~President~~December 31, ~~Finance~~2015, ~~Individual~~our ~~Life~~disclosure ~~Insurance~~controls ~~from~~and ~~2011~~procedures towere ~~February 2013~~effective. ~~She~~No ~~served~~change in our internal control over financial reporting, as ~~Managing~~defined ~~Director~~in Exchange Act Rule 13a-15(f), ~~Treasurers~~occurred during the quarter ended December 31, ~~Prudential Financial~~2015, ~~from~~that ~~2008~~has materially affected, or is reasonably likely to ~~September~~materially ~~2011.~~affect, ~~Age~~our 43internal control over financial reporting.

~~BERNARD J~~Item 9B. ~~JACOB,~~Other Director (current term expires March 2016) – Senior Vice President and Chief Financial Officer, US Businesses, Prudential Financial since January 2010. Previously, he served as Senior Vice President and Treasurer, Prudential Financial from 2006 to January 2010. Age 59. Information

~~RICHARD F~~None. LAMBERT, Director (current term expires March 2016) – Chief Actuary, Prudential Financial since May 2012. Previously, he served as Senior Vice President and Chief Actuary, Prudential International Insurance, Prudential Financial from 2006 to May 2012. Age 58.

ROBERT F. O’DONNELL, Director, Chief Executive Officer and President (current term expires March 2016) – Senior Vice President, Annuities, Prudential Financial since April 2012. Previously, he served as Vice President, Annuities, Prudential Financial from 2009 to April 2012. Age 46. 22

~~KENT~~Table D.of SLUYTER, Director and Senior Vice President (current term expires March 2016) – Senior Vice President, Individual Life Insurance, Prudential Financial since January 2013. Previously, he served as Vice President and Actuary, Individual Life Insurance, Prudential Financial from 2006 to January 2013. Age 55. Contents

~~KENNETH~~PART Y. TANJI, Director and Treasurer (current term expires March 2016) – Senior Vice President and Treasurer, Treasurers, Prudential Financial since March 2013. Previously, he served as Chief Financial Officer of Prudential’s International Businesses from 2006 to March 2013. Age 49. III

~~EXECUTIVE~~Item 10. ~~OFFICERS~~Directors, Executive Officers and Corporate Governance

~~THERESA~~JOHN ~~M. DZIEDZIC~~CHIEFFO, ~~Senior~~Director and Vice President, ~~Chief~~(current ~~Actuary~~term ~~and~~expires ~~Appointed~~March ~~Actuary~~2017) – Vice President, ~~and Actuary~~Finance, ~~Corporate Actuarial~~Individual Life Insurance, Prudential Financial since ~~June~~February ~~2014~~2012. Previously, ~~she~~he served as Vice President and ~~Actuary~~Controller, ~~Financial~~International ~~Reporting~~Insurance Business, Prudential Financial from ~~1999~~2006 to ~~June~~February ~~2014~~2012. Age 5152.

~~JAMES~~YANELA MC. ~~O’CONNOR~~FRIAS, ~~Senior~~Director, ~~Vice~~Chief ~~President~~Financial Officer and ~~Actuary~~Chief Accounting Officer (current term expires March 2017) – Vice President, ~~Actuarial~~Finance, Individual Annuities, Prudential Financial since ~~2001~~February 2013. ~~Age 58~~ Previously, she served as Vice President, Finance, Individual Life Insurance from 2011 to February 2013. She served as Managing Director, Treasurers, Prudential Financial from 2008 to September 2011. Age 44.

~~LYNN~~BERNARD KJ. ~~STONE~~JACOB, ~~Chief~~Director ~~Legal~~(current ~~Officer,~~term ~~Secretary~~expires ~~and~~March ~~Vice~~2017) ~~President~~ – Senior Vice President and ~~Corporate~~Chief ~~Counsel~~Financial Officer, ~~Annuities~~ ~~Law~~US Businesses, Prudential Financial since ~~2008~~January 2010. Previously, ~~Age~~he 56served as Senior Vice President and Treasurer, Prudential Financial from 2006 to January 2010. Age 60.

~~The~~RICHARD ~~business~~F. ~~address~~LAMBERT, ofDirector ~~all~~(current ~~directors~~term ~~and~~expires ~~officers~~March of2017) ~~Pruco~~– ~~Life~~Chief ofActuary, ~~New~~Prudential ~~Jersey~~Financial ~~is 213~~since ~~Washington~~May ~~Street~~2012. Previously, ~~Newark,~~he ~~New~~served ~~Jersey~~as ~~07102-2992.~~Senior ~~Pruco~~Vice ~~Life~~President ~~directors~~ and ~~officers~~Chief ~~are~~Actuary, ~~elected~~International ~~annually~~Insurance Business, Prudential Financial from 2006 to May 2012. Age 59.

24LORI D. FOUCHÉ, Director, Chief Executive Officer and President (current term expires March 2017) – President, Annuities, Prudential Financial since December 2015. Previously, she served as Senior Vice President and Chief Executive Officer, Group Insurance, Prudential Financial from 2013 to December 2015. Prior to joining Prudential, Ms. Fouché served as President of Commercial Insurance, Firemen’s Insurance Group from 2008 to July 2011 and later as President and Chief Executive Officer from 2011 to June 2013. Age 46.

~~Table~~KENT ofD. ~~Contents~~SLUYTER, Director and Senior Vice President (current term expires March 2017) – Senior Vice President, Individual Life Insurance, Prudential Financial since January 2013. Previously, he served as Vice President and Actuary, Individual Life Insurance, Prudential Financial from 2006 to January 2013. Age 56.

~~Code~~KENNETH Y. TANJI, Director and Treasurer (current term expires March 2017) – Senior Vice President and Treasurer, Prudential Financial since March 2013. Previously, he served as Chief Financial Officer of ~~Ethics~~Prudential’s International Businesses from 2006 to March 2013. Age 50.

WeEXECUTIVE have adopted Prudential Financial’s code of business conduct and ethics, known as “Making the Right Choices,” which applies to our Chief Executive Officer, Chief Financial Officer and our Principal Accounting Officer, as well as to our directors and all other employees. Making the Right Choices is posted on Prudential Financial’s website at www.investor.prudential.com. OFFICERS

InTHERESA ~~addition~~M. DZIEDZIC, weSenior ~~have~~Vice ~~adopted~~President, ~~Prudential~~Chief ~~Financial’s~~Actuary ~~Corporate~~and ~~Governance~~Appointed ~~Guidelines,~~Actuary ~~which~~– ~~we refer~~Vice toPresident ~~herein~~and asActuary, ~~the “~~Corporate ~~Governance~~Actuarial, ~~Principles~~Prudential ~~and~~Financial ~~Practices~~since June 2014.” Previously, ~~Prudential~~she ~~Financial’s~~served ~~Corporate~~as ~~Governance~~Vice ~~Principles~~President and ~~Practices~~Actuary, ~~are~~Financial ~~available~~Reporting, ~~free~~Prudential ofFinancial ~~charge~~from at1999 ~~www~~to June 2014.~~investor.prudential.com.~~ Age 52.

~~Item~~JAMES 11M. ~~Executive~~O’CONNOR, ~~Compensation~~Senior Vice President and Actuary – Vice President, Actuarial, Prudential Financial since 2001. Age 59.

~~The~~LYNN ~~Real~~K. ~~Property~~STONE, ~~Account~~Chief ~~does~~Legal ~~not~~Officer, ~~pay~~Secretary ~~any~~and ~~fees,~~Vice ~~compensation~~President – orVice ~~reimbursement~~President toand ~~any~~Corporate ~~Director~~Counsel, orAnnuities ~~Officer~~Law, ofPrudential ~~the~~Financial ~~Registrant~~since 2008. Age 57.

~~Item~~The ~~12.~~business ~~Security~~address ~~Ownership~~of all directors and officers of ~~Certain~~Pruco ~~Beneficial~~Life ~~Owners~~is ~~and~~213 ~~Management~~Washington Street, Newark, New Jersey 07102-2992. Pruco Life directors and ~~Related~~officers ~~Stockholder~~are ~~Matters~~elected annually.

~~Not applicable.~~ 23

~~Item~~Table ~~13.~~of ~~Certain Relationships and Related Transactions, and Director Independence~~Contents

~~See~~Code ~~Related Transactions in Note 10~~ of ~~Notes to the Consolidated Financial Statements of the Partnership.~~ Ethics

~~The~~We ~~Registrant~~have isadopted aPrudential ~~wholly-owned~~Financial’s ~~subsidiary~~code of ~~Pruco~~business ~~Life~~conduct ~~Insurance~~and ~~Company~~ethics, ~~which,~~known inas ~~turn~~“Making the Right Choices,” iswhich ~~a wholly-owned~~applies ~~subsidiary~~to ofour ~~Prudential~~Chief Executive Officer, ~~which~~Chief inFinancial ~~turn,~~Officer isand anour ~~indirect~~Principal ~~wholly-owned~~Accounting ~~subsidiary~~Officer, ofas ~~Prudential~~well ~~Financial.~~as ~~All~~to ~~Directors~~our directors and ~~Executive~~all ~~Officers~~other ofemployees. Making the ~~Registrant~~Right ~~are~~Choices ~~employees~~is ~~and~~posted ~~officers~~on of Prudential. Financial’s website at www.investor.prudential.com.

~~Item~~In 14addition, we have adopted Prudential Financial’s Corporate Governance Guidelines, which we refer to herein as the “Corporate Governance Principles and Practices.” ~~Principal~~Prudential ~~Accounting~~Financial’s ~~Fees~~Corporate Governance Principles and ~~Services~~Practices are available free of charge at www.investor.prudential.com.

The Audit Committee of the Board of Directors of Prudential Financial has appointed PricewaterhouseCoopers LLP as the independent registered public accounting firm of Prudential Financial and certain of its domestic and international subsidiaries, including the Registrant. The Audit Committee has established a policy requiring its pre-approval of all audit and permissible non-audit services provided by the independent auditor. The specific information called for by this item is hereby incorporated by reference to the section entitled “Item ~~2 – Ratification of the Appointment of Independent Auditors” in the definitive proxy statement of Prudential Financial, Inc. for the Annual Meeting of Shareholders to be held on May~~ ~~12, 2015, to be filed with the SEC pursuant to Regulation 14A within 120 days after the year ended December 31, 2014~~11. Executive Compensation

25The Real Property Account does not pay any fees, compensation or reimbursement to any Director or Officer of the Registrant.

~~Table~~Item 12. Security Ownership of ~~Contents~~Certain Beneficial Owners and Management and Related Stockholder Matters

~~PART~~Not IV applicable.

Item 15 13. ~~Exhibits~~Certain Relationships and ~~Financial~~Related ~~Statement~~Transactions, ~~Schedules~~and Director Independence

~~(a)~~See ~~The~~Related ~~following~~Transactions ~~documents~~in ~~are~~Note ~~filed~~10 asof ~~part~~Notes to the Consolidated Financial Statements of ~~this~~the ~~report:~~Partnership.

1.The Registrant is a wholly-owned subsidiary of Pruco Life Insurance Company, which, in turn, is a wholly-owned subsidiary of Prudential, which in turn, is a wholly-owned subsidiary of Prudential Financial. ~~Statements~~All Directors and Executive Officers of the Registrant are employees and officers of Prudential.

~~See~~Item 14. ~~the~~Principal ~~Index~~Accounting toFees ~~Financial Statements~~ and ~~Supplementary Data on page F-1.~~ Services

2The Audit Committee of the Board of Directors of Prudential Financial has appointed PricewaterhouseCoopers LLP as the independent registered public accounting firm of Prudential Financial and certain of its domestic and international subsidiaries, including the Registrant. The Audit Committee has established a policy requiring its pre-approval of all audit and permissible non-audit services provided by the independent auditor. The specific information called for by this item is hereby incorporated by reference to the section entitled “Item 2 – Ratification of the Appointment of Independent Auditors” in the definitive proxy statement of Prudential Financial ~~Statement~~for ~~Schedules~~the Annual Meeting of Shareholders to be held on May 10, 2016, to be filed with the SEC pursuant to Regulation 14A within 120 days after the year ended December 31, 2015.

The following financial statement schedules of The Prudential Variable Contract Real Property Partnership should be read in conjunction with the financial statements in Item 8 of this Annual Report on Form 10-K: 24

~~Schedule~~Table ~~III.~~of ~~Real Estate Owned: Properties~~ Contents

~~See~~PART ~~the Index to Financial Statements and Supplementary Data on page F-1.~~ IV

3Item 15. ~~Documents~~Exhibits ~~Incorporated~~and byFinancial ~~Reference~~Statement Schedules

~~See~~(a) ~~the~~The following ~~list~~documents are filed as part of ~~exhibits.~~this report:

41. ~~Exhibits~~Financial Statements

See the ~~following~~Index ~~list~~to ofFinancial ~~exhibits.~~Statements and Supplementary Data on page F-1.

~~(b) None~~2. Financial Statement Schedules

~~(c)~~ The following isfinancial astatement ~~list~~schedules of ~~Exhibits to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014.~~ The ~~Registrant~~Prudential ~~will~~Variable ~~furnish~~Contract aReal ~~copy~~Property ofPartnership ~~any~~should ~~Exhibit~~be ~~listed~~read ~~below~~in toconjunction ~~any~~with ~~security holder of~~ the ~~Registrant~~financial ~~who~~statements ~~requests~~in itItem 8 ~~upon payment~~ of ~~a fee of 15 cents per page. All Exhibits are either contained in~~ this Annual Report on Form 10-K ~~or are incorporated by reference as indicated below.~~:

~~3.1~~Schedule ~~Amended Certificate of Incorporation of Pruco Life Insurance Company of New Jersey, filed as Exhibit 1~~III.~~A.(6)(a)~~ inReal ~~Post~~Estate ~~Effective~~Owned: ~~Amendment No. 26 to Form S-6, Registration Statement No. 2-89780, filed April 28, 1997, and incorporated herein by reference.~~Properties

~~3.2~~See ~~Certificate of Amendment of~~ the ~~Certificate~~Index ofto ~~Incorporation~~Financial ofStatements ~~Pruco~~and ~~Life~~Supplementary ~~Insurance~~Data ~~Company~~on ofpage ~~New Jersey, filed as Exhibit (3B) in Post~~F-~~Effective Amendment No.12 to Form S-~~1~~, Registration Statement No~~. ~~33-20018, filed April 16, 1999, and incorporated herein by reference.~~

3.3 ~~Certificate~~Documents ofIncorporated Amendment of the Certificate of Incorporation of Pruco Life Insurance Company of New Jersey, filed as Exhibit 3(i)(c) to Form S-1, Registration Statement No. 333-202194, filed February 20, 2015, and incorporated herein by ~~reference.~~Reference

~~3.4~~See ~~Amended~~the ~~By-Laws~~following oflist ~~Pruco Life Insurance Company~~ of ~~New Jersey, filed as Exhibit 1~~exhibits.~~A.(6)(c) to Form S-6, Registration Statement No. 333-85117, filed August 13, 1999, and incorporated herein by reference.~~

34.5 Resolution of the Board of Directors establishing the Pruco Life of New Jersey Variable Contract Real Property Account, filed as Exhibit (3C) in Post-Effective Amendment No. 9 to Form S-1, Registration Statement No. 33-20018, filed April 9, 1997, and incorporated herein by reference.Exhibits

~~4.1~~See ~~Variable~~the ~~Life~~following ~~Insurance~~list ~~Contract~~of ~~filed as Exhibit 1~~exhibits.~~A.(5) in Post-Effective Amendment No. 24 to Form S-6, Registration Statement No. 2-81243, filed April 29, 1997, and incorporated herein by reference.~~

~~4.2 Revised Variable Appreciable Life Insurance Contract with fixed death benefit, filed as Exhibit 1.A.~~(5b)~~(c)~~ ~~in Post-Effective Amendment No~~None. ~~26 to Form S-6, Registration Statement No. 2-89780, filed April 28,1997, and incorporated herein by reference.~~

~~4.3~~(c) ~~Revised~~The ~~Variable~~following ~~Appreciable~~is ~~Life~~a ~~Insurance~~list ~~Contract~~of ~~with~~Exhibits ~~variable~~to ~~death~~the ~~benefit,~~Registrant’s ~~filed~~Annual asReport ~~Exhibit~~on ~~1.A.(5)(d)~~Form ~~in Post~~10-~~Effective~~K ~~Amendment~~for Nothe fiscal year ended December 31, 2015. 26The Registrant will furnish a copy of any Exhibit listed below to ~~Form~~any ~~S-6,~~security ~~Registration~~holder ~~Statement~~of Nothe Registrant who requests it upon payment of a fee of 15 cents per page. ~~2-89780,~~All ~~filed~~Exhibits ~~April~~are ~~28,~~either ~~1997,~~contained ~~and~~in ~~incorporated~~this ~~herein~~Annual Report on Form 10-K or are incorporated by reference as indicated below.

43.41 ~~Single~~Amended ~~Premium~~Certificate ~~Variable~~of ~~Annuity~~Incorporation ~~Contract,~~of ~~filed~~Pruco asLife ~~Exhibit~~Insurance ~~(4C)~~Company inof ~~Post-Effective~~New ~~Amendment~~Jersey, ~~No.~~filed 9by Exhibit to Form S-1, Registration Statement No. 33333-~~20018~~158230, filed ~~April~~March 927, ~~1997~~2009, and incorporated herein by reference.

43.52 ~~Flexible~~Certificate ~~Premium~~of ~~Variable~~Amendment ~~Life~~of ~~Insurance~~the ~~Contract,~~Certificate ~~filed~~of asIncorporation ~~Exhibit~~of ~~(4D)~~Pruco inLife ~~Post-Effective~~Insurance ~~Amendment~~Company ~~No.~~of 9New Jersey, filed by Exhibit to Form SN-16, Registration Statement No. 33002-~~20018~~89780, filed April 921, ~~1997~~2009, and incorporated herein by reference.

263.3 Certificate of Amendment of the Certificate of Incorporation of Pruco Life Insurance Company of New Jersey, filed as Exhibit 3(i)(c) to Form S-1, Registration Statement No. 333-202194, filed February 20, 2015, and incorporated herein by reference.

~~Table~~3.4 Amended By-Laws of ~~Contents~~Pruco Life Insurance Company of New Jersey, filed by Exhibit to Form S-1, Registration Statement No. 333-158230, filed March 27, 2009, and incorporated herein by reference.

3.5 Resolution of the Board of Directors establishing the Pruco Life of New Jersey Variable Contract Real Property Account, filed as Exhibit (3C) in Post-Effective Amendment No. 9 to Form S-1, Registration Statement No. ~~None~~33-20018, filed April 9, 1997, and incorporated herein by reference.

104.1 ~~Investment~~Variable ~~Management~~Life ~~Agreement~~Insurance ~~between~~Contract ~~Prudential~~filed ~~Investment~~as ~~Management,~~Exhibit ~~Inc~~1.A.(5) ~~and The Prudential Variable Contract Real Property Partnership, filed~~ in Post-Effective Amendment No. 1624 to Form S-16, Registration Statement No. 332-~~20083-01~~81243, filed April 1029, ~~2003~~1997, and incorporated herein by reference.

104.2 ~~Administrative~~Revised ~~Service~~Variable ~~Agreement~~Appreciable ~~among PIM, Prudential Insurance Company of America, Pruco~~ Life Insurance ~~Company,~~Contract ~~and~~with ~~Pruco~~fixed ~~Life~~death ~~Insurance Company of New Jersey~~benefit, filed as Exhibit 1.A.(~~10B~~5)(c) in Post-Effective Amendment No. 1726 to Form S-16, Registration Statement No. 332-~~20083-01~~89780, filed April 1428, ~~2004~~1997, and incorporated herein by reference.

104.3 ~~Partnership~~Revised ~~Agreement~~Variable ofAppreciable ~~The~~Life ~~Prudential~~Insurance ~~Variable~~ Contract ~~Real~~with ~~Property~~variable ~~Partnership~~death benefit, filed as Exhibit 1.A.(~~10C~~5)(d) in Post-Effective Amendment No. 926 to Form S-16, Registration Statement No. 332-~~20083-01~~89780, filed April 928, 1997, and incorporated herein by reference.

114.4 ~~Not~~Single ~~applicable~~Premium Variable Annuity Contract, filed as Exhibit (4C) in Post-Effective Amendment No. 9 to Form S-1, Registration Statement No. 33-20018, filed April 9, 1997, and incorporated herein by reference.

124.5 ~~Not~~Flexible ~~applicable~~Premium Variable Life Insurance Contract, filed as Exhibit (4D) in Post-Effective Amendment No. 9 to Form S-1, Registration Statement No. 33-20018, filed April 9, 1997, and incorporated herein by reference.

169. None.

~~18. None.~~25

~~22.~~Table ~~Not~~of ~~applicable.~~Contents

2310.1 ~~None~~Investment Management Agreement between Prudential Investment Management, Inc. and The Prudential Variable Contract Real Property Partnership, filed in Post-Effective Amendment No. 16 to Form S-1, Registration Statement No. 33-20083-01, filed April 10, 2003, and incorporated herein by reference.

2410.2 ~~Powers~~Administrative Service Agreement among PIM, Prudential Insurance Company of ~~Attorney~~America, ~~are~~Pruco Life Insurance Company, and Pruco Life Insurance Company of New Jersey, filed ~~herewith~~as Exhibit (10B) in Post-Effective Amendment No. 17 to Form S-1, Registration Statement No. 33-20083-01, filed April 14, 2004, and incorporated herein by reference.

3110.3 Partnership Agreement of The Prudential Variable Contract Real Property Partnership filed as Exhibit (10C) in Post-Effective Amendment No. 9 to Form S-1, ~~Section~~Registration ~~302~~Statement ~~Certification~~No. of33-20018, ~~Chief~~filed ~~Executive~~April ~~Officer~~9, 1997, and incorporated herein by reference.

3111.2 ~~Section~~Not ~~302 Certification of Chief Financial Officer~~applicable.

3212.1 ~~Section~~Not ~~906 Certification of Chief Executive Officer~~applicable.

3216.2 ~~Section 906 Certification of Chief Financial Officer~~None.

		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


18.	None.

2722. Not applicable.

~~Table~~23. ~~of Contents~~None.

~~SIGNATURES~~24. Powers of Attorney are filed herewith.

~~Pursuant~~31.1 ~~to the requirements of~~ Section 13 or302 ~~15(d)~~Certification of ~~the~~Chief ~~Securities~~Executive Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, in the city of Newark, and State of New Jersey, on the 12th day of March, 2015Officer.

~~PRUCO~~31.2 ~~LIFE~~Section ~~INSURANCE~~302 ~~COMPANY~~Certification OFof ~~NEW~~Chief ~~JERSEY~~Financial Officer.

in32.1 ~~respect~~Section 906 Certification of Chief Executive Officer.

~~Pruco~~32.2 ~~Life of~~Section ~~New~~906 ~~Jersey~~Certification ~~Variable~~of ~~Contract~~Chief ~~Real~~Financial ~~Property Account~~ Officer.

~~(Registrant)~~101.INS -XBRL Instance Document

~~By: /s/ Robert F~~101.SCH ~~O’Donnell~~-XBRL ~~Robert~~Taxonomy ~~O’Donnell~~Extension ~~President~~Schema ~~and Chief Executive Officer~~Document.

~~Pursuant~~101.CAL to-XBRL ~~the~~Taxonomy ~~requirements~~Extension ofCalculation ~~the~~Linkbase ~~Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities indicated on March 12, 2015~~Document.

~~Signature Title /s/ Robert F~~101.LAB ~~O’Donnell~~-XBRL ~~President,~~Taxonomy ~~Chief~~Extension ~~Executive~~Label ~~Officer~~Linkbase ~~and Director Robert F~~Document. O’Donnell /s/ Yanela C. Frias Vice President, Chief Financial Officer, Yanela C. Frias Principal Accounting Officer and Director */s/ John Chieffo Director John Chieffo */s/ Bernard J. Jacob Director Bernard J. Jacob */s/ Richard F. Lambert Director Richard F. Lambert */s/ Kent D. Sluyter Director Kent D. Sluyter */s/ Kenneth Y. Tanji Director Kenneth Y. Tanji

*By:101.PRE ~~/s/ Sun~~-~~Jin~~XBRL ~~Moon~~Taxonomy ~~Sun-Jin~~Extension ~~Moon~~Presentation ~~(Attorney-in-Fact)~~Linkbase Document.

28101.DEF -XBRL Taxonomy Extension Definition Linkbase Document

~~Table of Contents~~26

~~PRUCO~~Table ~~LIFE~~of ~~OF NEW JERSEY VARIABLE CONTRACT REAL PROPERTY ACCOUNT~~ Contents

~~(Registrant)~~ SIGNATURES

~~I NDEX~~Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, in the city of Newark, and State of New Jersey, on the 10th day of March, 2016.

A. PRUCO LIFE OF NEW JERSEY VARIABLE CONTRACT REAL PROPERTY ACCOUNT
Financial Statements:
Management’s Annual Report on Internal Control Over Financial Reporting			F-2
Report of Independent Registered Public Accounting Firm			F-3
Statements of Net Assets – December 31, 2014 and 2013			F-4
Statements of Operations – Years Ended December 31, 2014, 2013 and 2012			F-4
Statements of Changes in Net Assets – Years Ended December 31, 2014, 2013 and 2012			F-4
Notes to Financial Statements			F-5
B. THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP
Financial Statements:
Report of Independent Registered Public Accounting Firm			F-12
Report of Independent Registered Public Accounting Firm on Financial Statement Schedules			F-13
Consolidated Statements of Assets and Liabilities – December 31, 2014 and 2013			F-14
Consolidated Statements of Operations – Years Ended December 31, 2014, 2013 and 2012			F-15
Consolidated Statements of Changes in Net Assets – Years Ended December 31, 2014, 2013 and 2012			F-16
Consolidated Statements of Cash Flows – Years Ended December 31, 2014, 2013 and 2012			F-17
Consolidated Schedules of Investments – December 31, 2014 and 2013			F-18
Notes to Consolidated Financial Statements			F-20
Financial Statement Schedules:
For the period ended December 31, 2014
Schedule III – Real Estate Owned: Properties			F-32

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

~~All other schedules are omitted because they are not applicable, or because the required information is included~~ in ~~the~~respect ~~financial statements or notes thereto.~~ of

~~F-1~~Pruco Life of New Jersey Variable Contract Real Property Account

~~Table of Contents~~(Registrant)

~~Management’~~By: /s/ ~~Annual~~Lori ~~Report~~D. onFouché ~~Internal~~Lori ~~Control~~D. ~~Over~~FouchéPresident ~~Financial Reporting~~and Chief Executive Officer

~~Management~~Pursuant ofto ~~Pruco Life Insurance Company of New Jersey (~~the ~~“Company”)~~requirements ~~is responsible for establishing and maintaining adequate internal control over financial reporting. Management conducted an assessment~~ of the ~~effectiveness,~~Securities asExchange ofAct ~~December 31, 2014,~~ of ~~the Company’s internal control over financial reporting~~1934, ~~based~~this onreport ~~the~~has ~~framework established~~been insigned ~~Internal~~below ~~Control – Integrated Framework (2013) issued~~ by the ~~Committee~~following ofpersons ~~Sponsoring~~on ~~Organizations~~behalf of the ~~Treadway~~Registrant ~~Commission~~and ~~(“COSO”).~~in ~~Based on our assessment under that framework, management concluded that~~ the ~~Company’s~~capacities ~~internal~~indicated ~~control~~on ~~over financial reporting was effective as of December~~March 3110, ~~2014~~2016.

~~Our~~Signature ~~internal~~Title ~~control~~/s/ ~~over financial~~Lori ~~reporting~~D. isFouché aPresident, ~~process~~Chief ~~designed~~Executive byOfficerand orDirector ~~under~~Lori ~~the~~D. ~~supervision~~Fouché of/s/ ~~our~~Yanela principal executive and principal financial officers to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principlesC. ~~Our~~Frias ~~internal~~Vice ~~control~~President, ~~over~~Chief ~~financial~~Financial ~~reporting includes policies and procedures that (1) pertain to the maintenance of records that~~Officer, inYanela ~~reasonable detail,~~C. ~~accurately~~Frias ~~and~~Principal ~~fairly~~Accounting ~~reflect~~Officer ~~transactions~~ and ~~dispositions~~Director of*/s/ ~~assets;~~John ~~(2) provide~~Chieffo ~~reasonable~~Director ~~assurance~~John ~~that~~Chieffo ~~transactions~~*/s/ ~~are~~Bernard ~~recorded~~J. asJacob ~~necessary~~Director toBernard ~~permit~~J. ~~preparation~~Jacob of*/s/ ~~financial~~Richard ~~statements~~F. inLambert ~~accordance~~Director ~~with~~Richard ~~generally~~F. ~~accepted accounting~~Lambert ~~principles,~~*/s/ ~~and~~Kent ~~that~~D. ~~receipts~~Sluyter ~~and~~Director ~~expenditures~~Kent ~~are~~D. ~~being~~Sluyter made only in accordance with authorizations of management and the directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’*/s/ ~~assets~~Kenneth ~~that~~Y. ~~could~~Tanji ~~have~~Director aKenneth ~~material effect on our financial statements~~Y. Tanji

~~Because~~*By: of/s/ ~~its~~Sun-Jin ~~inherent~~Moon ~~limitations,~~Sun-Jin internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes Moon(Attorney-in ~~conditions, or that the degree of compliance with the policies or procedures may deteriorate.~~ -Fact)

This annual report does not include an attestation report of the Company’s registered public accounting firm, PricewaterhouseCoopers LLP, regarding internal control over financial reporting. The Company’s Internal Controls over Financial Reporting were not subject to attestation by the Company’s registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permit the Company to provide only management’s report in this annual report. 27

~~March 12,~~Table ~~2015~~of Contents

~~F-2~~Item 8. Financial Statements and Supplementary Data

~~Table~~PRUCO ofLIFE ~~Contents~~OF NEW JERSEY VARIABLE CONTRACT REAL PROPERTY ACCOUNT

~~Report of Independent Registered Public Accounting Firm~~ (Registrant)

~~To the Board of Directors of~~ INDEX

Pruco Life Insurance Company of New Jersey



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

Financial Statements:

Management’s Annual Report on Internal Control Over Financial Reporting	F-2

Report of Independent Registered Public Accounting Firm	F-3

Statements of Net Assets – December 31, 2015 and 2014	F-4

Statements of Operations – Years Ended December 31, 2015, 2014 and 2013	F-4

Statements of Changes in Net Assets – Years Ended December 31, 2015, 2014 and 2013	F-4

Notes to the Financial Statements	F-5

B. THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

Financial Statements:

Report of Independent Registered Public Accounting Firm	F-11

Report of Independent Registered Public Accounting Firm on Financial Statement Schedules	F-13

Consolidated Statements of Assets and Liabilities – December 31, 2015 and 2014	F-14

Consolidated Statements of Operations – Years Ended December 31, 2015, 2014 and 2013	F-15

Consolidated Statements of Changes in Net Assets – Years Ended December 31, 2015, 2014 and 2013	F-16

Consolidated Statements of Cash Flows – Years Ended December 31, 2015, 2014 and 2013	F-17

Consolidated Schedules of Investments - December 31, 2015 and 2014	F-18

Notes to the Consolidated Financial Statements	F-20

Financial Statement Schedules:

For the period ended December 31, 2015

Schedule III – Real Estate Owned: Properties	F-32

~~and~~All other schedules are omitted because they are not applicable, or because the ~~Contract~~required ~~Owners~~information ofis included in the financial statements or notes thereto.

~~Pruco Life of New Jersey Variable Contract Real Property Account~~ F-1

InTable ~~our opinion, the accompanying statements~~ of net assets and the related statements of operations and of changes in net assets present fairly, in all material respects, the financial position of Pruco Life of New Jersey Variable Contract Real Property Account at December 31, 2014 and 2013, and the results of its operations and the changes in its net assets for each of the three years in the period ended December 31, 2014, in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the management of Pruco Life Insurance Company of New Jersey. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. Contents

/Management’s/ ~~PricewaterhouseCoopers LLP~~ Annual Report on Internal Control Over Financial Reporting

Management of Pruco Life Insurance Company of New ~~York~~Jersey (the “Company”) is responsible for establishing and maintaining adequate internal control over financial reporting. Management conducted an assessment of the effectiveness, ~~New~~as ~~York~~of December 31, 2015, of the Company’s internal control over financial reporting, based on the framework established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). Based on our assessment under that framework, management concluded that the Company’s internal control over financial reporting was effective as of December 31, 2015.

~~March~~Our internal control over financial reporting is a process designed by or under the supervision of our principal executive and principal financial officers to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Our internal control over financial reporting includes policies and procedures that (1) 12pertain to the maintenance of records that, ~~2015~~in reasonable detail, accurately and fairly reflect transactions and dispositions of assets; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with authorizations of management and the directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on our financial statements.

~~F-3~~Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

~~Table~~This Annual Report does not include an attestation report of ~~Contents~~the Company’s registered public accounting firm, PricewaterhouseCoopers LLP, regarding internal control over financial reporting. Management's report was not subject to attestation by the Company’s registered public accounting firm pursuant to rules of the Securities and Exchange Commission that permit the Company to provide only management’s report in this Annual Report.

~~FINANCIAL~~March 10, ~~STATEMENTS~~2016 OF

~~PRUCO LIFE OF NEW JERSEY VARIABLE CONTRACT REAL PROPERTY ACCOUNT~~ F-2

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

~~December 31,~~Report ~~2014~~of ~~and~~Independent ~~2013~~Registered Public Accounting Firm

	2014			2013
ASSETS
Investment in The Prudential Variable Contract Real Property Partnership	$	8,485,201		$	8,311,766
Net Assets	$	8,485,201		$	8,311,766
NET ASSETS, representing:
Equity of contract owners	$	6,879,693		$	6,692,300
Equity of Pruco Life Insurance Company of New Jersey		1,605,508			1,619,466
	$	8,485,201		$	8,311,766
Units outstanding		2,467,132			2,574,912
Portfolio shares held		209,632			220,019
Portfolio net asset value per share	$	40.48		$	37.78
STATEMENTS OF OPERATIONS For the years ended December 31, 2014, 2013 and 2012
	2014			2013			2012
INVESTMENT INCOME
Net investment income allocated from The Prudential Variable Contract Real Property Partnership	$	307,139		$	407,664		$	374,431
EXPENSES
Charges to contract owners for assuming mortality risk and expense risk and for administration		38,690			36,657			34,842
NET INVESTMENT INCOME		268,449			371,007			339,589
NET RECOGNIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Change in unrealized gain (loss) on investments allocated from The Prudential Variable Contract Real Property Partnership		249,204			329,830			125,215
Net gain (loss) recognized on investments allocated from The Prudential Variable Contract Real Property Partnership		21,434			6,397			15,535
NET GAIN (LOSS) ON INVESTMENTS		270,638			336,227			140,750
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	539,087		$	707,234		$	480,339
STATEMENTS OF CHANGES IN NET ASSETS For the years ended December 31, 2014, 2013 and 2012
	2014			2013			2012
OPERATIONS
Net investment income	$	268,449		$	371,007		$	339,589
Change in unrealized gain (loss) on investments allocated from The Prudential Variable Contract Real Property Partnership		249,204			329,830			125,215
Net gain (loss) recognized on investments allocated from The Prudential Variable Contract Real Property Partnership		21,434			6,397			15,535
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		539,087			707,234			480,339
CAPITAL TRANSACTIONS
Net contributions (withdrawals) by contract owners		(239,920	)		(62,886	)		(161,519	)
Net contributions (withdrawals) by Pruco Life Insurance Company of New Jersey		(125,732	)		(299,042	)		(8,884	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL TRANSACTIONS		(365,652	)		(361,928	)		(170,403	)
TOTAL INCREASE (DECREASE) IN NET ASSETS		173,435			345,306			309,936
NET ASSETS
Beginning of year		8,311,766			7,966,460			7,656,524
End of year	$	8,485,201		$	8,311,766		$	7,966,460

To the Board of Directors of

~~The~~Pruco ~~accompanying~~Life ~~notes~~Insurance ~~are~~Company ~~an integral part~~ of ~~these~~New ~~financial statements.~~ Jersey

~~F-4~~and the Contract Owners of

~~Table~~Pruco Life of ~~Contents~~New Jersey Variable Contract Real Property Account

~~NOTES~~In TOour ~~THE~~opinion, ~~FINANCIAL~~the ~~STATEMENTS~~accompanying OFstatements of net assets and the related statements of operations and of changes in net assets present fairly, in all material respects, the financial position of Pruco Life of New Jersey Variable Contract Real Property Account at December 31, 2015 and 2014, and the results of its operations and the changes in its net assets for each of the three years in the period ended December 31, 2015, in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the management of Pruco Life Insurance Company of New Jersey. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

~~PRUCO~~/s/ ~~LIFE~~PricewaterhouseCoopers OFLLP ~~NEW~~New ~~JERSEY~~York, ~~VARIABLE~~New ~~CONTRACT~~York ~~REAL~~March ~~PROPERTY~~10, ~~ACCOUNT~~ 2016

~~December 31, 2014~~ F-3

~~Note~~Table 1:of ~~General~~ Contents

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

~~The assets~~PRUCO ofLIFE ~~the~~OF ~~Real~~NEW ~~Property~~JERSEY ~~Account~~VARIABLE ~~are~~CONTRACT ~~invested~~REAL inPROPERTY The Prudential Variable Contract Real Property Partnership (the “Partnership”). The Partnership is the investment vehicle for assets allocated to the real estate investment option under certain variable life insurance and annuity contracts. The Real Property Account, along with Pruco Life Variable Contract Real Property Account and The Prudential Variable Contract Real Property Account, are the sole investors in the Partnership. These financial statements should be read in conjunction with the audited consolidated financial statements of the Partnership. ACCOUNT

~~The Partnership~~STATEMENTS ~~has~~OF aNET ~~policy of investing at least 65% of its assets in direct ownership interests in income-producing real estate and participating mortgage loans.~~ ASSETS

~~Note~~December 31, 2:2015 ~~Summary~~and of2014 ~~Significant Accounting Policies~~

A. Basis of Accounting



	December 31, 2015		December 31, 2014
ASSETS
Investment in The Prudential Variable Contract Real Property Partnership	$	9,036,785	$	8,485,201
Net Assets	$	9,036,785	$	8,485,201
NET ASSETS, representing:
Equity of contract owners	$	7,184,139	$	6,879,693
Equity of Pruco Life Insurance Company of New Jersey	1,852,646		1,605,508
	$	9,036,785	$	8,485,201
Units outstanding	2,421,763		2,467,132
Portfolio shares held	204,595		209,632
Portfolio net asset value per share	$	44.17	$	40.48

~~The~~STATEMENTS ~~financial~~OF statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Real Property Account has evaluated subsequent events through the date these financial statements were available to be issued. OPERATIONS

~~Use~~For ofthe ~~Estimates~~years ended December 31, 2015, 2014 and 2013

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 and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates include valuation of investment in the Partnership.



	December 31, 2015		December 31, 2014		December 31, 2013
INVESTMENT INCOME
Net investment income allocated from The Prudential Variable Contract Real Property Partnership	$	273,969	$	307,139	$	407,664
EXPENSES
Charges to contract owners for assuming mortality and expense risk and for administration	40,024		38,690		36,657
NET INVESTMENT INCOME	233,945		268,449		371,007
NET RECOGNIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net unrealized gain (loss) on investments allocated from The Prudential Variable Contract Real Property Partnership	479,615		249,204		329,830
Net recognized gain (loss) on investments allocated from The Prudential Variable Contract Real Property Partnership	5,677		21,434		6,397
NET GAIN (LOSS) ON INVESTMENTS	485,292		270,638		336,227
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	719,237	$	539,087	$	707,234

B.STATEMENTS ~~Investment~~OF inCHANGES ~~Partnership~~IN ~~Interest~~NET ASSETS

~~The~~For ~~investment in~~ the ~~Partnership~~years isended ~~based on the Real Property Account’s proportionate interest of the Partnership’s fair value. At~~ December 31, ~~2014 and 2013~~2015, ~~the~~2014 ~~Real Property Account’s interest in the General Partners Controlling Interest was 4.5% or 209,632 shares~~ and 4.5% or 220,019 shares, respectively. Properties owned by the Partnership are illiquid and their fair value is based on estimated fair value as discussed in the notes to the audited consolidated financial statements of the Partnership. 2013

C. Income Recognition



	December 31, 2015			December 31, 2014			December 31, 2013
OPERATIONS
Net investment income	$	233,945		$	268,449		$	371,007
Net unrealized gain (loss) on investments allocated from The Prudential Variable Contract Real Property Partnership	479,615			249,204			329,830
Net recognized gain (loss) on investments allocated from The Prudential Variable Contract Real Property Partnership	5,677			21,434			6,397
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	719,237			539,087			707,234
CAPITAL TRANSACTIONS
Net contributions (withdrawals) by contract owners	(268,769		)	(239,920		)	(62,886		)
Net contributions (withdrawals) by Pruco Life Insurance Company of New Jersey	101,116			(125,732		)	(299,042		)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL TRANSACTIONS	(167,653		)	(365,652		)	(361,928		)
TOTAL INCREASE (DECREASE) IN NET ASSETS	551,584			173,435			345,306
NET ASSETS
Beginning of year	8,485,201			8,311,766			7,966,460
End of year	$	9,036,785		$	8,485,201		$	8,311,766

~~Net~~The ~~investment~~accompanying ~~income,~~notes ~~recognized and unrealized gains and losses~~ are ~~allocated~~an ~~based~~integral ~~upon~~part ~~the~~of ~~monthly~~these ~~average~~financial ~~net assets for the investment in the Partnership~~statements. ~~Amounts are based on the Real Property Account’s proportionate interest in the Partnership.~~

~~D. Equity of Pruco Life Insurance Company of New Jersey~~ F-4

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

~~For~~NOTES ~~the~~TO ~~years~~THE ~~ended~~FINANCIAL ~~December 31,~~STATEMENTS 2014 and 2013, there were no cash transactions at the Real Property Account level 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. OF

~~F-5~~PRUCO LIFE OF NEW JERSEY VARIABLE CONTRACT REAL PROPERTY ACCOUNT

~~Table~~December 31, of2015 ~~Contents~~

~~NOTES~~Note TO1: ~~THE FINANCIAL STATEMENTS OF~~ General

~~PRUCO~~Pruco ~~LIFE~~Life OFof ~~NEW~~New ~~JERSEY~~Jersey ~~VARIABLE~~Variable ~~CONTRACT~~Contract ~~REAL~~Real ~~PROPERTY~~Property ~~ACCOUNT~~Account (the “Real Property Account” or the “Registrant”) was established on October 30, 1987 by resolution of the Board of Directors of Pruco Life Insurance Company of New Jersey (“Pruco Life of New Jersey” or the “Company”), as a separate investment account pursuant to New Jersey law and is registered under the Securities Act of 1933, as amended. Pruco Life of New Jersey is a wholly-owned subsidiary of Pruco Life Insurance Company (“Pruco Life”). Pruco Life is a wholly-owned subsidiary of The Prudential Insurance Company of America (“Prudential”), which is a wholly-owned subsidiary of Prudential Financial, Inc. (“Prudential Financial”). The assets of the Real Property Account are segregated from Pruco Life of New Jersey’s other assets. The Real Property Account is used to fund benefits under certain variable life insurance and variable annuity contracts issued by Pruco Life of New Jersey. These products are Variable Appreciable Life (“VAL”), Variable Life Insurance (“VLI”), Discovery Plus (“SPVA”), and Discovery Life Plus (“SPVL”).

~~December~~The 31assets 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, ~~2014~~along with Pruco Life Variable Contract Real Property Account and The Prudential Variable Contract Real Property Account, are the sole investors in the Partnership. These financial statements should be read in conjunction with the audited consolidated financial statements of the Partnership.

~~Note~~The 3:Partnership ~~Taxes~~has a policy of investing at least 65% of its assets in direct ownership interests in income-producing real estate and participating mortgage loans.

~~Pruco~~Note ~~Life~~2: ofSummary ~~New Jersey is taxed as a “life insurance company”, as defined by the Internal Revenue Code. The results~~ of ~~operations~~Significant ofAccounting 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. Policies

~~Note~~A. Basis 4:of ~~Net Contributions (Withdrawals) by Contract Owners~~ Accounting

~~Net~~The ~~contributions~~financial ~~(withdrawals)~~statements byhave ~~contract~~been ~~owners~~prepared ~~for~~in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Real Property Account byhas ~~product~~evaluated ~~for~~subsequent ~~the years~~events ~~ended~~through ~~December 31,~~the ~~2014,~~date ~~2013~~these ~~and~~financial ~~2012~~statements were ~~as follows:~~ issued.

2014:	VAL			VLI			SPVA		SPVL			TOTAL
Contract owner net payments	$	199,756		$	35,897		$	—	$	—		$	235,653
Policy loans		(86,270	)		(14,257	)		—		—			(100,527	)
Policy loan repayments and interest		109,003			20,799			—		—			129,802
Surrenders, withdrawals, and death benefits		(122,206	)		(84,488	)		—		—			(206,694	)
Net transfers from/(to) other subaccounts or fixed rate option		(77,993	)		(31,079	)		—		—			(109,072	)
Administrative and other charges		(156,667	)		(31,857	)		—		(558	)		(189,082	)
	$	(134,377	)	$	(104,985	)	$	—	$	(558	)	$	(239,920	)
2013:	VAL			VLI			SPVA		SPVL			TOTAL
Contract owner net payments	$	214,541		$	41,364		$	—	$	—		$	255,905
Policy loans		(109,578	)		(10,745	)		—		—			(120,323	)
Policy loan repayments and interest		83,058			17,440			—		—			100,498
Surrenders, withdrawals, and death benefits		(127,403	)		(24,335	)		—		—			(151,738	)
Net transfers from/(to) other subaccounts or fixed rate option		48,538			(2,500	)		—		—			46,038
Administrative and other charges		(159,192	)		(33,554	)		—		(520	)		(193,266	)
	$	(50,036	)	$	(12,330	)	$	—	$	(520	)	$	(62,886	)
2012:	VAL			VLI			SPVA		SPVL			TOTAL
Contract owner net payments	$	214,472		$	42,135		$	—	$	—		$	256,607
Policy loans		(112,274	)		(12,371	)		—		—			(124,645	)
Policy loan repayments and interest		116,297			14,089			—		—			130,386
Surrenders, withdrawals, and death benefits		(220,875	)		(27,173	)		—		—			(248,048	)
Net transfers from/(to) other subaccounts or fixed rate option		24,841			(5,499	)		—		—			19,342
Administrative and other charges		(161,842	)		(32,823	)		—		(496	)		(195,161	)
	$	(139,381	)	$	(21,642	)	$	—	$	(496	)	$	(161,519	)

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 and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates include valuation of investment in the Partnership.

~~F-6~~B. Investment in Partnership Interest

~~Table~~The investment in the Partnership is based on the Real Property Account’s proportionate interest of ~~Contents~~the Partnership’s fair value. At December 31, 2015 and 2014, the Real Property Account’s share of the general partners' controlling interest of the Partnership was 4.5% or 204,595 shares and 4.5% or 209,632 shares, respectively. Properties owned by the Partnership are illiquid and their fair value is based on estimated fair value as discussed in the notes to the consolidated financial statements of the Partnership.

~~NOTES~~C. Income ~~TO THE FINANCIAL STATEMENTS OF~~ Recognition

~~PRUCO~~Net ~~LIFE~~investment OFincome ~~NEW~~or ~~JERSEY~~loss, ~~VARIABLE~~and ~~CONTRACT~~recognized ~~REAL~~and ~~PROPERTY~~unrealized ~~ACCOUNT~~gains and losses are allocated based upon the monthly average net assets for the investment in the Partnership. Amounts are based on the Real Property Account’s proportionate interest in the Partnership.

~~December~~D. Equity ~~31,~~of ~~2014~~Pruco Life Insurance Company of New Jersey

~~Note~~Pruco 5:Life of New Jersey maintains a position in the Real Property Account for liquidity purposes, including unit purchases and redemptions, Partnership ~~Distributions~~share transactions, and expense processing. The position does not affect contract owners’ accounts or the related unit values.

~~For~~There ~~the~~were ~~year~~no ~~ended~~cash ~~December 31,~~transactions ~~2014,~~at the ~~Partnership distributed a total of $10.0 million, which occurred on March 26, 2014 and September 26, 2014, for $5.0 million each. The~~ Real Property Account’s ~~share~~level offor ~~these distributions was $0.2 million each or a total of $0.4 million. During~~ the ~~year~~years ended December 31, ~~2013~~2015, ~~the~~2014 ~~Partnership distributed~~and ~~$10.0~~2013 ~~million,~~as ~~which~~all ~~occurred~~of onthe ~~March 26,~~transactions ~~2013~~are ~~and~~settled ~~December 30,~~by ~~2013,~~Pruco ~~for~~Life ~~$5.0~~of ~~million~~New ~~each.~~Jersey ~~The~~on behalf of the Real Property Account’s ~~share~~through ofa ~~these~~redemption ~~distributions~~or ~~was~~an ~~$0.2~~issuance ~~million~~of ~~each~~units. orTherefore, ano ~~total~~statement of ~~$0.4~~cash ~~million.~~flows ~~During~~is presented for the ~~year~~years ended December 31, ~~2012~~2015, ~~the~~2014 ~~Partnership~~and ~~distributed $5~~2013.~~0 million, which occurred on March 28, 2012. The Real Property Account’s share of this distribution was $0.2 million.~~

~~For the years ended December 31, 2014, 2013, and 2012, there were no purchases of the Partnership by the Real Property Account.~~ F-5

~~Note~~Table 6:of ~~Unit Activity~~ Contents

~~All~~NOTES ~~products~~TO ~~referred~~THE toFINANCIAL inSTATEMENTS ~~Note 1 for outstanding units at December 31, 2014, 2013 and 2012 were as follows:~~ OF

2014
Company			Contract Owner
				VAL			VLI			SPVA		SPVL
Contributions:	69,234		Contributions:		117,974			18,349			—		—
Redemptions:	(106,110	)	Redemptions:		(158,583	)		(48,442	)		—		(202	)
2013
Company			Contract Owner
				VAL			VLI			SPVA		SPVL
Contributions:	86,371		Contributions:		125,619			18,304			—		—
Redemptions:	(180,946	)	Redemptions:		(140,816	)		(22,041	)		—		(203	)
2012
Company			Contract Owner
				VAL			VLI			SPVA		SPVL
Contributions:	120,033		Contributions:		138,503			19,614			—		—
Redemptions:	(120,768	)	Redemptions:		(187,316	)		(26,768	)		—		(204	)

PRUCO LIFE OF NEW JERSEY VARIABLE CONTRACT REAL PROPERTY ACCOUNT

~~F-7~~December 31, 2015

~~Table~~Note of3: ~~Contents~~Taxes

~~NOTES~~Pruco TOLife ~~THE~~of ~~FINANCIAL~~New ~~STATEMENTS~~Jersey OFis taxed as a “life insurance company”, as defined by the Internal Revenue Code. The results of operations of the Real Property Account form a part of Prudential 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.

~~PRUCO~~Note ~~LIFE~~4: OFNet ~~NEW~~Contributions ~~JERSEY~~(Withdrawals) ~~VARIABLE~~by ~~CONTRACT~~Contract ~~REAL PROPERTY ACCOUNT~~ Owners

~~December~~Net contributions (withdrawals) by contract owners for the Real Property Account by product for the years ended December 31, 2015, 2014 and 2013 were as follows:

Note 7: Financial Highlights



December 31, 2015	VAL			VLI			SPVA		SPVL			TOTAL
Contract owner net payments	$	213,205		$	35,661		$	—	$	—		$	248,866
Policy loans	(123,429		)	(11,826		)	—		—			(135,255		)
Policy loan repayments and interest	143,872			19,801			—		—			163,673
Surrenders, withdrawals and death benefits	(254,325		)	(50,233		)	—		(70,216		)	(374,774		)
Net transfers from/(to) other subaccounts or fixed rate option	11,809			10,808			—		—			22,617
Administrative and other charges	(160,712		)	(32,951		)	—		(233		)	(193,896		)
	$	(169,580	)	$	(28,740	)	$	—	$	(70,449	)	$	(268,769	)

December 31, 2014	VAL			VLI			SPVA		SPVL			TOTAL
Contract owner net payments	$	199,756		$	35,897		$	—	$	—		$	235,653
Policy loans	(86,270		)	(14,257		)	—		—			(100,527		)
Policy loan repayments and interest	109,003			20,799			—		—			129,802
Surrenders, withdrawals and death benefits	(122,206		)	(84,488		)	—		—			(206,694		)
Net transfers from/(to) other subaccounts or fixed rate option	(77,993		)	(31,079		)	—		—			(109,072		)
Administrative and other charges	(156,667		)	(31,857		)	—		(558		)	(189,082		)
	$	(134,377	)	$	(104,985	)	$	—	$	(558	)	$	(239,920	)

December 31, 2013	VAL			VLI			SPVA		SPVL			TOTAL
Contract owner net payments	$	214,541		$	41,364		$	—	$	—		$	255,905
Policy loans	(109,578		)	(10,745		)	—		—			(120,323		)
Policy loan repayments and interest	83,058			17,440			—		—			100,498
Surrenders, withdrawals and death benefits	(127,403		)	(24,335		)	—		—			(151,738		)
Net transfers from/(to) other subaccounts or fixed rate option	48,538			(2,500		)	—		—			46,038
Administrative and other charges	(159,192		)	(33,554		)	—		(520		)	(193,266		)
	$	(50,036	)	$	(12,330	)	$	—	$	(520	)	$	(62,886	)

Pruco Life of New Jersey sells a number of variable annuity and variable life insurance products. These products have unique combinations of features and fees that are charged against the contract owner’s account balance. Differences in the fee structures result in a variety of unit values, expense ratios and total returns. F-6

~~The~~Table ~~following table was developed by determining which products offered by Pruco Life~~ of New Jersey have the lowest and highest total expense ratio and reflects contract owner units only. The table may not reflect the minimum and maximum contract charges offered by the Company as contract owners may not have selected all available and applicable products as discussed in Note 1. Contents

	Units(000’s)		Unit ValueLowest-Highest					Net Assets(000’s)		InvestmentIncomeRatio(1)			Expense Ratio(2)Lowest-Highest						Total Return(3)Lowest-Highest
December 31, 2014		1,999	$	2.85193	-	$	3.66932	$	6,880		3.68	%		0.35	%	-	1.25	%		5.82	%	-	6.77	%
December 31, 2013		2,070	$	2.69505	-	$	3.43650	$	6,692		5.04	%		0.35	%	-	1.25	%		8.19	%	-	9.17	%
December 31, 2012		2,089	$	2.49096	-	$	3.14796	$	6,201		4.84	%		0.35	%	-	1.25	%		5.53	%	-	6.48	%
December 31, 2011		2,145	$	2.36048	-	$	2.95634	$	5,994		4.79	%		0.35	%	-	1.25	%		12.33	%	-	13.33	%
December 31, 2010		2,183	$	2.10140	-	$	2.60866	$	5,393		4.79	%		0.35	%	-	1.25	%		8.31	%	-	9.29	%

NOTES TO THE FINANCIAL STATEMENTS OF

~~Pruco~~PRUCO ~~Life~~LIFE ofOF ~~New~~NEW ~~Jersey~~JERSEY ~~also~~VARIABLE ~~maintains~~CONTRACT aREAL ~~position~~PROPERTY in the Real Property Account, to provide for property acquisitions and capital expenditure funding needs. The table below reflects information for units and assets held by the Company. Charges for mortality risk and expense risk and administrative expenses are used by Pruco Life of New Jersey to purchase additional units in its account resulting in no impact to its net assets. ACCOUNT

	Units(000’s)		Net Assets(000’s)
December 31, 2014		468	$	1,606
December 31, 2013		505	$	1,619
December 31, 2012		600	$	1,765
December 31, 2011		600	$	1,662
December 31, 2010		772	$	1,893

December 31, 2015

~~(1)~~Note ~~This~~5: ~~amount represents the contract owner’s proportionate share of the net investment income from the underlying~~ Partnership divided by the contract owners’ average net assets of the Real Property Account. This ratio excludes those expenses, such as mortality risk and expense risk and administrative expenses that result in direct reductions in the unit values.Distributions

~~(2)~~For ~~These~~the ~~amounts~~year ~~represent~~ended December 31, 2015, the ~~annualized~~Partnership ~~contract~~distributed ~~expenses~~a total of ~~the~~$5.0 million, which occurred on March 30, 2015. The Real Property Account’s share of this distribution was $0.2 million. During the year ended December 31, ~~consisting~~2014, ~~primarily~~the ofPartnership ~~mortality~~distributed $10.0 million, which occurred on March 26, 2014 and ~~expense~~September 26, ~~charges~~2014, for ~~each~~$5.0 ~~period~~million ~~indicated~~each. ~~These~~The ~~ratios~~Real ~~include~~Property ~~only~~Account’s ~~those~~share ~~expenses~~of ~~that~~these ~~result~~distributions inwas a$0.2 ~~direct~~million ~~reduction~~each toor ~~unit~~a ~~values.~~total ~~Charges~~of ~~made~~$0.4 ~~directly~~million. toDuring ~~contract~~the ~~owner~~year ~~accounts~~ended ~~through~~December 31, 2013, the ~~redemption~~Partnership ofdistributed ~~units~~$10.0 million, which occurred on March 26, 2013 and ~~expenses~~December 30, 2013, for $5.0 million each. The Real Property Account’s share of ~~the~~these ~~underlying~~distributions ~~Partnership~~was ~~are~~$0.2 ~~excluded~~million each or a total of $0.4 million.

~~(3)~~For ~~These amounts represent~~ the ~~total~~years ~~return~~ended ~~for~~December 31, ~~the periods indicated~~2015, ~~including~~2014 ~~changes~~and ~~in the value of the underlying Partnership~~2013, ~~and~~there ~~reflect~~were ~~deductions~~no ~~for~~purchases ~~all items included in the expense ratio. The total return does not include any expense assessed through the redemption~~ of ~~units; inclusion of these expenses in~~ the ~~calculation~~Partnership ~~would~~by ~~result in a reduction in~~ the ~~total~~Real ~~return~~Property ~~presented~~Account.

~~F-8~~Note 6: Unit Activity

~~Table~~All ofproducts ~~Contents~~referred to in Note 1 for outstanding units at December 31, 2015, 2014 and 2013 were as follows:

NOTES TO THE FINANCIAL STATEMENTS OF



December 31, 2015
Pruco Life of New Jersey			Contract Owner
				VAL		VLI		SPVA	SPVL
Contributions:	135,402		Contributions:	117,754		18,993		—	—
Redemptions:	(101,813	)	Redemptions:	(165,647	)	(26,488	)	—	(23,570	)
December 31, 2014
Pruco Life of New Jersey			Contract Owner
				VAL		VLI		SPVA	SPVL
Contributions:	69,234		Contributions:	117,974		18,349		—	—
Redemptions:	(106,110	)	Redemptions:	(158,583	)	(48,442	)	—	(202	)
December 31, 2013
Pruco Life of New Jersey			Contract Owner
				VAL		VLI		SPVA	SPVL
Contributions:	86,371		Contributions:	125,619		18,304		—	—
Redemptions:	(180,946	)	Redemptions:	(140,816	)	(22,041	)	—	(203	)

~~PRUCO~~Note ~~LIFE~~7: OFFinancial ~~NEW JERSEY VARIABLE CONTRACT REAL PROPERTY ACCOUNT~~ Highlights

~~December~~Pruco 31Life of New Jersey sells a number of variable annuity and variable life insurance products. These products have unique combinations of features and fees that are charged against the contract owner’s account balance. Differences in the fee structures result in a variety of unit values, ~~2014~~expense ratios and total returns.

~~Note~~The 7:following ~~Financial~~table ~~Highlights~~was ~~(continued)~~developed by determining which products offered by Pruco Life of New Jersey have the lowest and highest total expense ratio and reflects contract owner units only. The table may not reflect the minimum and maximum contract charges offered by Pruco Life of New Jersey as contract owners may not have selected all available and applicable products as discussed in Note 1.

Charges and Expenses



	Units (000’s)	Unit Value Lowest-Highest					Net Assets (000’s)		Investment Income Ratio⁽¹⁾		Expense Ratio⁽²⁾ Lowest-Highest					Total Return⁽³⁾ Lowest-Highest
December 31, 2015	1,921	$	3.07375	—	$	3.99015	$	7,184	3.16	%	0.35	%	—	1.25	%	7.78	%	—	8.74	%
December 31, 2014	1,999	$	2.85193	—	$	3.66932	$	6,880	3.68	%	0.35	%	—	1.25	%	5.82	%	—	6.77	%
December 31, 2013	2,070	$	2.69505	—	$	3.43650	$	6,692	5.04	%	0.35	%	—	1.25	%	8.19	%	—	9.17	%
December 31, 2012	2,089	$	2.49096	—	$	3.14796	$	6,201	4.84	%	0.35	%	—	1.25	%	5.53	%	—	6.48	%
December 31, 2011	2,145	$	2.36048	—	$	2.95634	$	5,994	4.79	%	0.35	%	—	1.25	%	12.33	%	—	13.33	%

A(1) This amount represents the contract owners' proportionate share of the net investment income from the underlying Partnership divided by the contract owners' average net assets of the Real Property Account. ~~Mortality~~This ~~Risk~~ratio excludes those expenses, such as mortality risk and ~~Expense~~expense ~~Risk~~risk ~~Charges~~and administrative expenses that result in direct reductions in the unit values.

Mortality risk and expense risk charges are determined daily using an effective annual rate of 0.6%, 0.35%, 0.9% and 0.9% for VAL, VLI, SPVA and SPVL, respectively. Mortality risk is the risk that life insurance contract owners may not live as long as estimated or annuitants may live longer than estimated and expense risk is the risk that the cost of issuing and administering the policies may exceed related charges by Pruco Life of New Jersey. The mortality risk and expense risk charges are assessed through reduction in unit values. F-7

BTable ~~Administrative~~of ~~Charges~~ Contents

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

C.PRUCO ~~Cost~~LIFE ofOF ~~Insurance~~NEW ~~and~~JERSEY ~~Other~~VARIABLE ~~Related~~CONTRACT ~~Charges~~REAL PROPERTY ACCOUNT

~~Contract~~December ~~owner contributions are subject to certain deductions prior to being invested in the Real Property Account. The deductions for VAL and VLI are (1) state premium taxes; (2) sales charges~~31, not to exceed 5% for VAL, which are deducted in order to compensate Pruco Life of New Jersey for the cost of selling the contract and (3) transaction costs, applicable to VAL, which are deducted from each premium payment to cover premium collection and processing costs. Contracts are subject to charges on each basic premium for assuming a guaranteed minimum death benefit risk. This charge compensates Pruco Life of New Jersey 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. 2015

D.Note ~~Deferred~~7: ~~Sales~~Financial ~~Charge~~Highlights (continued)

~~For~~(2) ~~SPVA,~~These ~~there~~amounts isrepresent athe ~~deferred~~annualized ~~sales~~contract ~~charge~~expenses ~~that~~of ~~applies~~the atReal ~~the~~Property ~~time~~Account, ofconsisting aprimarily ~~full~~of ormortality ~~partial~~and ~~withdrawal~~expense charges, ~~and~~for ~~the~~each ~~amount~~period ofindicated. ~~the~~These ~~charge~~ratios ~~(which declines~~include ~~over~~only ~~time)~~those ~~depends~~expenses onthat result in a direct reduction to unit values. Charges made directly to contract owner accounts through the ~~number~~redemption of ~~years~~units ~~that~~and ~~have~~expenses ~~elapsed~~of ~~since~~ the ~~contract~~underlying ~~was~~Partnership ~~issued.~~are excluded.

E(3)These amounts represent the total return for the periods indicated, including changes in the value of the underlying Partnership, and reflect deductions for all items included in the expense ratio. ~~Partial~~The ~~Withdrawal~~total ~~Charge~~ return does not include any expense assessed through the redemption of units; inclusion of these expenses in the calculation would result in a reduction in the total return presented.

~~A charge is imposed by~~ Pruco Life of New Jersey onalso ~~partial~~maintains ~~withdrawals~~a ofposition in the ~~cash~~Real ~~surrender~~Property ~~value~~Account, to provide for ~~VAL.~~property Aacquisitions ~~charge~~and ~~equal~~capital toexpenditure ~~the lesser~~funding ofneeds. ~~$15~~The ortable 2%below ~~will~~reflects beinformation ~~made~~for inunits ~~connection~~and ~~with~~assets ~~each~~held ~~partial~~by ~~withdrawal~~Pruco Life of ~~the~~New ~~cash~~Jersey. ~~surrender~~Charges ~~value~~for ofmortality arisk ~~contract.~~and ~~This~~expense ~~charge~~risk isand ~~assessed~~administrative ~~through~~expenses ~~the~~are ~~redemption~~used by Pruco Life of New Jersey to purchase additional units. in its account resulting in no impact to its net assets.

Note 8: Related Party



	Units (000’s)	Net Assets (000’s)
December 31, 2015	501	$1,853
December 31, 2014	468	$1,606
December 31, 2013	505	$1,619
December 31, 2012	600	$1,765
December 31, 2011	600	$1,662

~~The~~Charges ~~Real Property 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. Expenses

~~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~~A. Mortality ~~These~~Risk ~~services include, among other things, shareholder communications, document preparation, postage, fund transfer agency~~ and ~~various~~Expense ~~other~~Risk ~~record keeping and customer service functions.~~ Charges

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

~~Table~~B. Administrative ~~of Contents~~Charges

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

~~PRUCO~~C. Cost ~~LIFE~~of OFInsurance ~~NEW~~and ~~JERSEY~~Other ~~VARIABLE~~Related ~~CONTRACT REAL PROPERTY ACCOUNT~~ Charges

~~December~~Contract 31owner contributions are subject to certain deductions prior to being invested in the Real Property Account. The deductions for VAL and VLI are (1) taxes attributable to premiums; (2) sales charges, ~~2014~~not to exceed 5% for VAL, which are deducted in order to compensate Pruco Life of New Jersey for the cost of selling the contract; and (3) transaction costs, applicable to VAL, which are deducted from each premium payment to cover premium collection and processing costs. Contracts are subject to charges on each basic premium for assuming a guaranteed minimum death benefit risk. This charge compensates Pruco Life of New Jersey 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.

~~Note~~D. Deferred 9:Sales ~~Fair Value Disclosure~~ Charge

~~Fair~~For ~~value~~SPVA, ~~represents~~there ~~the~~is ~~price that would be received to sell an asset or paid to transfer~~ a ~~liability~~deferred insales ancharge ~~orderly transaction~~that ~~between~~applies ~~market participants~~ at the ~~measurement~~time ~~date.~~of ~~The authoritative fair value guidance establishes~~ a ~~framework~~full ~~for~~or ~~measuring~~partial ~~fair~~withdrawal, ~~value~~and ~~that includes a hierarchy used to classify~~ the ~~inputs~~amount ~~used~~of ~~in measuring fair value. The level in~~ the ~~fair~~charge ~~value hierarchy within~~ (which ~~the~~declines ~~fair~~over ~~value~~time) ~~measurement~~depends ~~falls is determined based~~ on the ~~lowest~~number ~~level~~of ~~input~~years that ishave ~~significant~~elapsed tosince the ~~fair~~contract ~~value~~was ~~measurement~~issued. ~~The~~This ~~levels~~deferred ofsales ~~the~~charge ~~fair~~is ~~value~~assessed ~~hierarchy~~through ~~are~~the asredemption ~~follows:~~of units.

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. F-8

~~Level~~Table ~~2 – 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.~~ Contents

~~Level~~NOTES 3TO –THE ~~Fair~~FINANCIAL ~~value~~STATEMENTS is based on significant unobservable inputs for the asset or liability. These inputs reflect the Real Property Account’s own assumptions about the assumptions that market participants would use in pricing 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 audited consolidated financial statements. All of the Real Property Account’s assets were classified as Level 3. OF

~~The~~PRUCO ~~purpose~~LIFE ofOF anNEW ~~appraisal~~JERSEY isVARIABLE toCONTRACT ~~estimate~~REAL ~~the~~PROPERTY 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, 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 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. ACCOUNT

~~During the years ended~~ December 31, ~~2014 and 2013, there were no transfers between Level 1, Level 2, and Level 3.~~ 2015

InNote ~~general,~~7: ~~the~~Financial ~~input~~Highlights 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. (continued)

~~The table below summarizes the assets measured at fair value on a recurring basis and their respective level in the fair value hierarchy~~E. Partial Withdrawal Charge

~~Table~~A 1:charge is imposed by Pruco Life of New Jersey on partial withdrawals of the cash surrender value for VAL. A charge equal to the lesser of $15 or 2% will be made in connection with each partial withdrawal of the cash surrender value of a contract. This charge is assessed through the redemption of units.

($Note ~~in 000’s)~~8: Related Party

~~Fair~~The ~~value~~Real ~~measurements~~Property atAccount ~~December 31~~has transactions and relationships with Prudential and other affiliates. Due to these relationships, ~~2014~~it is possible that the terms of these transactions are not the same as those that would result from transactions among unrelated parties.

Assets:		Amount measuredat fair valueDecember 31, 2014				Level 1				Level 2				Level 3
Investment in The Prudential Variable Contract Real Property Partnership		$	8,485			$	—			$	—			$	8,485

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.

($Note in9: ~~000’s)~~Fair Value Measurements

Fair value ~~measurements~~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 ~~December~~the ~~31,~~measurement ~~2013~~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:

Assets:		Amount measuredat fair valueDecember 31, 2013				Level 1				Level 2				Level 3
Investment in The Prudential Variable Contract Real Property Partnership		$	8,312			$	—			$	—			$	8,312

~~F-10~~Level 2 – 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.

~~Table~~Level 3 – Fair value is 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 ~~Contents~~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 consolidated financial statements and below. All of the Real Property Account’s assets were classified as Level 3.

~~NOTES~~The TOpurpose ~~THE~~of ~~FINANCIAL~~an ~~STATEMENTS~~appraisal OFis 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, 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.

~~PRUCO~~During ~~LIFE~~the OFyears ~~NEW~~ended ~~JERSEY~~December 31, ~~VARIABLE~~2015 ~~CONTRACT~~and ~~REAL~~2014, ~~PROPERTY~~there ~~ACCOUNT~~were no transfers between Level 1, Level 2 and Level 3.

~~December~~In 31general, ~~2014~~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.

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 years ended December 31, 2014 and 2013. F-9

Table 2: of Contents

	($ in 000’s)2014
Beginning balance @ 1/1/14	$	8,312
Total gains or losses (recognized/unrealized) included in earnings (or changes in net assets) from Partnership operations		271
Net investment income from Partnership operations		307
Acquisitions, issuances, and contributions		—
Dispositions, settlements, and distributions		(405	)
Ending balance @ 12/31/14	$	8,485
Unrealized gains (losses) for the year relating to Level 3 assets still held at the reporting date	$	249
	($ in 000’s)2013
Beginning balance @ 1/1/13	$	7,966
Total gains or losses (recognized/unrealized) included in earnings (or changes in net assets) from Partnership operations		336
Net investment income from Partnership operations		408
Acquisitions, issuances, and contributions		—
Dispositions, settlements, and distributions		(398	)
Ending balance @ 12/31/13	$	8,312
Unrealized gains (losses) for the year relating to Level 3 assets still held at the reporting date	$	330

NOTES TO THE FINANCIAL STATEMENTS OF

~~F-11~~PRUCO LIFE OF NEW JERSEY VARIABLE CONTRACT REAL PROPERTY ACCOUNT

~~Table~~December of31, ~~Contents~~2015

~~Report~~Note of9: ~~Independent~~Fair ~~Registered~~Value ~~Public~~Measurements ~~Accounting Firm~~ (continued)

ToTable 1 below summarizes the ~~Partners~~assets ofmeasured at fair value on a recurring basis and their respective level in the fair value hierarchy.

The Prudential Variable Contract Real Property Partnership:



	($ in 000’s)
	Fair value measurements at December 31, 2015
Assets:	Total		Level 1		Level 2		Level 3
Investment in The Prudential Variable Contract Real Property Partnership	$	9,037	$	—	$	—	$	9,037

	($ in 000’s)
	Fair value measurements at December 31, 2014
Assets:	Total		Level 1		Level 2		Level 3
Investment in The Prudential Variable Contract Real Property Partnership	$	8,485	$	—	$	—	$	8,485

InTable ~~our~~2 ~~opinion,~~below ~~the~~provides ~~accompanying~~a ~~consolidated~~reconciliation ~~statements~~ of ~~assets and liabilities, including~~ the ~~consolidated~~beginning ~~schedules of investments,~~ and ~~the~~ending ~~related~~balances ~~consolidated~~for ~~statements~~all ~~of operations, of changes in net~~ assets ~~and~~measured ofat ~~cash~~fair ~~flows~~value ~~present~~on ~~fairly,~~a inrecurring ~~all~~basis ~~material~~using ~~respects,~~significant ~~the~~unobservable ~~financial~~inputs ~~position of The Prudential Variable Contract Real Property Partnership~~ (~~the~~Level ~~“Partnership”~~3) ~~at December 31, 2014 and 2013, the results of its operations, the changes in its net assets and its cash flows~~ for ~~each of~~ the ~~three~~ years ~~in the period~~ ended December 31, ~~2014,~~2015 in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the management of The Prudential Insurance Company of America. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and ~~perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement~~2014. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP New York, New York March 12, 2015



	($ in 000’s)
	December 31, 2015
Beginning balance, January 1, 2015	$	8,485
Net recognized and unrealized gains (losses) included in earnings (or changes in net assets) from Partnership operations	485
Net investment income from Partnership operations	274
Acquisitions, issuances and contributions	—
Dispositions, settlements and distributions	(207		)
Ending balance, December 31, 2015	$	9,037
Unrealized gains (losses) for the year relating to Level 3 assets still held at the reporting date	$	480

	($ in 000’s)
	December 31, 2014
Beginning balance, January 1, 2014	$	8,312
Net recognized and unrealized gains (losses) included in earnings (or changes in net assets) from Partnership operations	271
Net investment income from Partnership operations	307
Acquisitions, issuances and contributions	—
Dispositions, settlements and distributions	(405		)
Ending balance, December 31, 2014	$	8,485
Unrealized gains (losses) for the year relating to Level 3 assets still held at the reporting date	$	249

F-12 10

Table of Contents

~~Report~~NOTES ofTO ~~Independent~~THE ~~Registered~~FINANCIAL ~~Public~~STATEMENTS ~~Accounting Firm on~~ OF

~~Financial~~PRUCO ~~Statement~~LIFE ~~Schedules~~OF NEW JERSEY VARIABLE CONTRACT REAL PROPERTY ACCOUNT

ToDecember ~~the~~31, ~~Partners of~~ 2015

~~The Prudential~~Note ~~Variable Contract Real Property Partnership~~10: Subsequent Events

~~Our~~On ~~audits~~January of21, ~~the consolidated financial statements referred to in our report dated March 12~~2016, ~~2015~~the ~~appearing~~Partnership insold ~~this Annual Report on Form 10-K also included~~ an ~~audit~~office ofproperty ~~the financial statement schedule listed~~ in ~~Item 15(a)(2)~~Lisle, ~~of this Form 10-K~~Illinois. InFor ~~our~~further ~~opinion~~information, ~~this~~see ~~financial~~Note ~~statement~~13 ~~schedule~~of ~~presents fairly, in all material respects,~~ the ~~information~~Partnership's ~~set forth therein when read in conjunction with the related~~ consolidated financial statements.

~~/s/~~On ~~PricewaterhouseCoopers~~January ~~LLP~~28, ~~New~~2016, ~~York~~the Partnership leveraged two apartment complexes located in Austin, ~~New~~Texas ~~York~~and ~~March~~Charlotte, 12North Carolina. For further information, ~~2015~~see Note 13 of the Partnership's consolidated financial statements.

F-13 11

Table of Contents

~~THE~~Report ~~PRUDENTIAL~~of ~~VARIABLE~~Independent ~~CONTRACT~~Registered ~~REAL~~Public ~~PROPERTY~~Accounting ~~PARTNERSHIP~~ Firm

~~CONSOLIDATED~~To ~~STATEMENTS~~the OFGeneral ~~ASSETS~~Partners ~~AND~~of ~~LIABILITIES~~

	December 31, 2014		December 31, 2013
ASSETS
REAL ESTATE INVESTMENTS - At estimated fair value:
Real estate and improvements (cost: 12/31/2014 - $240,778,075; 12/31/2013 -$220,224,084)	$	235,689,701	$	210,100,000
CASH AND CASH EQUIVALENTS		32,308,210		43,962,922
OTHER ASSETS, NET		2,947,752		4,315,268
Total assets	$	270,945,663	$	258,378,190
LIABILITIES & PARTNERS’ EQUITY
INVESTMENT LEVEL DEBT	$	70,006,898	$	59,223,759
ACCOUNTS PAYABLE AND ACCRUED EXPENSES		1,663,710		3,008,619
DUE TO AFFILIATES		666,963		649,925
OTHER LIABILITIES		934,145		824,064
Total liabilities	$	73,271,716	$	63,706,367
COMMITMENTS AND CONTINGENCIES
NET ASSETS, REPRESENTING PARTNERS’ EQUITY:
GENERAL PARTNERS’ CONTROLLING INTEREST		188,251,636		185,407,870
NONCONTROLLING INTEREST		9,422,311		9,263,953
Total partner’s equity		197,673,947		194,671,823
Total liabilities and partners’ equity	$	270,945,663	$	258,378,190
NUMBER OF SHARES OUTSTANDING AT END OF PERIOD		4,650,878		4,907,883
SHARE VALUE AT END OF PERIOD	$	40.48	$	37.78

The Prudential Variable Contract Real Property Partnership:

~~The~~In our opinion, the accompanying ~~notes~~consolidated statements of assets and liabilities, including the consolidated schedules of investments, and the related consolidated statements of operations, of changes in net assets and of cash flows present fairly, in all material respects, the financial position of The Prudential Variable Contract Real Property Partnership (the “Partnership”) at December 31, 2015 and December 31, 2014, and the results of its operations, the changes in its net assets and its cash flows for each of the three years in the period ended December 31, 2015 in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the management of The Prudential Insurance Company of America. Our responsibility is to express an ~~integral~~opinion ~~part~~on these financial statements based on our audits. We conducted our audits of these ~~consolidated~~statements in accordance with the standards of the Public Company Accounting Oversight Board (United States) and in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

~~F-14~~/s/ PricewaterhouseCoopers LLP New York, New York March 10, 2016

~~Table of Contents~~F-12

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

~~CONSOLIDATED~~Report ~~STATEMENTS~~of OFIndependent ~~OPERATIONS~~Registered Public Accounting Firm on

	Year Ended December 31,
	2014		2013		2012
INVESTMENT INCOME:
Revenue from real estate and improvements	$	25,529,132	$	28,514,771	$	25,920,808
Equity in income of preferred equity investments		—		—		127,288
Interest income		17,809		10,992		18,106
Total investment income		25,546,941		28,525,763		26,066,202
INVESTMENT EXPENSES:
Operating		5,349,595		6,287,302		6,189,842
Investment management fee		2,567,986		2,529,031		2,443,023
Real estate taxes		2,679,638		2,603,477		2,400,551
Administrative		4,512,902		4,613,032		4,294,566
Interest expense		2,961,914		2,918,051		2,025,995
Total investment expenses		18,072,035		18,950,893		17,353,977
NET INVESTMENT INCOME		7,474,906		9,574,870		8,712,225
RECOGNIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net proceeds from real estate investments sold		13,016,625		46,802,489		8,571,929
Less: Cost of real estate investments sold		11,316,558		45,824,534		8,501,116
Gain (loss) realized from real estate investments sold		1,700,067		977,955		70,813
Less: Reversal of prior periods’ unrealized gain (loss) on real estate investments sold		1,223,468		834,772		(277,947	)
Net gain (loss) recognized on real estate investments sold		476,599		143,183		348,760
Change in unrealized gain (loss) on real estate investments held		6,259,179		8,943,638		3,531,632
NET RECOGNIZED AND UNREALIZED GAIN (LOSS)		6,735,778		9,086,821		3,880,392
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	14,210,684	$	18,661,691	$	12,592,617
Amounts attributable to noncontrolling interest:
Net investment income (loss) attributable to noncontrolling interest		645,422		449,485		306,150
Net unrealized gain (loss) attributable to noncontrolling interest		721,496		1,561,006		718,476
Net increase (decrease) in net assets resulting from operations attributable to noncontrolling interest	$	1,366,918	$	2,010,491	$	1,024,626
Amounts attributable to general partners’ controlling interest:
Net investment income attributable to general partners’ controlling interest		6,829,484		9,125,385		8,406,075
Net recognized gain (loss) attributable to general partners’ controlling interest		476,599		143,183		348,760
Net unrealized gain (loss) attributable to general partners’ controlling interest		5,537,683		7,382,632		2,813,156
Net increase (decrease) in net assets resulting from operations attributable to general partners’ controlling interest	$	12,843,766	$	16,651,200	$	11,567,991

Financial Statement Schedules

~~The~~To ~~accompanying~~the ~~notes~~Partners ~~are an integral part~~ of ~~these consolidated financial statements.~~

~~F-15~~The Prudential Variable Contract Real Property Partnership:

~~Table~~Our audits of ~~Contents~~the consolidated financial statements referred to in our report dated March 10, 2016 appearing in this Annual Report on Form 10-K also included an audit of the financial statement schedule listed in Item 15(a)(2) of this Form 10-K. In our opinion, this financial statement schedule presents fairly, in all material respects, the information set forth therein when read in conjunction with the related consolidated financial statements.

~~THE~~/s/ ~~PRUDENTIAL~~PricewaterhouseCoopers ~~VARIABLE~~LLP ~~CONTRACT~~New ~~REAL~~York, ~~PROPERTY~~New ~~PARTNERSHIP~~York March 10, 2016

~~CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS~~ F-13

	Year Ended December 31,
	2014									2013									2012
	GeneralPartners’ControllingInterest			Non-controllingInterest			Total			GeneralPartners’ControllingInterest			Non-controllingInterest			Total			GeneralPartners’ControllingInterest			Non-controllingInterest			Total
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS:
Net investment income (loss)	$	6,829,484		$	645,422		$	7,474,906			9,125,385		$	449,485		$	9,574,870		$	8,406,075		$	306,150		$	8,712,225
Net recognized and unrealized gain (loss) from real estate investments		6,014,282			721,496			6,735,778			7,525,815			1,561,006			9,086,821			3,161,916			718,476			3,880,392
Increase (decrease) in net assets resulting from operations		12,843,766			1,366,918			14,210,684			16,651,200			2,010,491			18,661,691			11,567,991			1,024,626			12,592,617
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL TRANSACTIONS:
Distributions to General Partners		(10,000,000	)		—			(10,000,000	)		(10,000,000	)		—			(10,000,000	)		(5,000,000	)		—			(5,000,000	)
Contributions from noncontrolling interest		—			—			—			—			1,113,456			1,113,456			—			1,688,870			1,688,870
Distributions to noncontrolling interest		—			(1,208,560	)		(1,208,560	)		—			(119,299	)		(119,299	)		—			(68,340	)		(68,340	)
Increase (decrease) in net assets resulting from capital transactions		(10,000,000	)		(1,208,560	)		(11,208,560	)		(10,000,000	)		994,157			(9,005,843	)		(5,000,000	)		1,620,530			(3,379,470	)
INCREASE (DECREASE) IN NET ASSETS		2,843,766			158,358			3,002,124			6,651,200			3,004,648			9,655,848			6,567,991			2,645,156			9,213,147
NET ASSETS - Beginning of period		185,407,870			9,263,953			194,671,823			178,756,670			6,259,305			185,015,975			172,188,679			3,614,149			175,802,828
NET ASSETS - End of period	$	188,251,636		$	9,422,311		$	197,673,947		$	185,407,870		$	9,263,953		$	194,671,823		$	178,756,670		$	6,259,305		$	185,015,975

Table of Contents

~~The~~THE ~~accompanying~~PRUDENTIAL ~~notes~~VARIABLE ~~are~~CONTRACT anREAL ~~integral~~PROPERTY ~~part of these consolidated financial statements.~~ PARTNERSHIP

~~F-16~~CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES



	December 31, 2015		December 31, 2014
ASSETS
REAL ESTATE INVESTMENTS - At estimated fair value:
Real estate and improvements (cost: 12/31/2015 - $255,844,718; 12/31/2014 -$240,778,075)	$	264,925,433	$	235,689,701
CASH AND CASH EQUIVALENTS	14,423,867		32,308,210
OTHER ASSETS, NET	3,497,097		2,947,752
Total assets	$	282,846,397	$	270,945,663
LIABILITIES & PARTNERS’ EQUITY
INVESTMENT LEVEL DEBT	$	66,598,081	$	70,006,898
ACCOUNTS PAYABLE AND ACCRUED EXPENSES	2,550,010		1,663,710
DUE TO AFFILIATES	745,769		666,963
OTHER LIABILITIES	809,256		934,145
Total liabilities	70,703,116		73,271,716
COMMITMENTS AND CONTINGENCIES
NET ASSETS, REPRESENTING PARTNERS’ EQUITY:
GENERAL PARTNERS’ CONTROLLING INTEREST	200,068,466		188,251,636
NONCONTROLLING INTEREST	12,074,815		9,422,311
Total partners' equity	212,143,281		197,673,947
Total liabilities and partners’ equity	$	282,846,397	$	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	$	44.17	$	40.48

~~THE~~The ~~PRUDENTIAL~~accompanying ~~VARIABLE~~notes ~~CONTRACT~~are ~~REAL~~an ~~PROPERTY~~integral ~~PARTNERSHIP~~part of these consolidated financial statements.

~~CONSOLIDATED STATEMENTS OF CASH FLOWS~~ F-14

	Year Ended December 31,
	2014			2013			2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net increase (decrease) in net assets resulting from operations	$	14,210,684		$	18,661,691		$	12,592,617
Adjustments to reconcile net increase (decrease) in net assets to net cash provided by (used in) operating activities
Net recognized and unrealized loss (gain)		(6,735,778	)		(9,086,821	)		(3,880,392	)
Amortization of discount on investment level debt		—			2,273			2,683
Amortization of deferred financing costs		45,593			38,673			44,495
(Increase) decrease in accrued interest included in preferred equity investment		—			—			53,868
(Reversal)Provision for allowance for doubtful accounts		97,225			(10,783	)		80,228
(Increase) decrease in:
Other assets		1,224,699			(783,751	)		(918,703	)
Increase (decrease) in:
Accounts payable and accrued expenses		(1,179,964	)		54,629			777,256
Due to affiliates		17,038			(31,184	)		68,163
Other liabilities		110,081			(19,084	)		(109,075	)
Net cash flows provided by (used in) operating activities		7,789,578			8,825,643			8,711,140
CASH FLOWS PROVIDED FOR INVESTING ACTIVITIES:
Net proceeds from real estate investments sold		13,016,625			46,802,489			8,571,929
Acquisition of real estate and improvements		(27,578,340	)		(20,868,465	)		(30,528,031	)
Additions to real estate and improvements		(4,457,154	)		(3,066,804	)		(2,758,866	)
Net cash flows provided by (used in) investing activities		(19,018,869	)		22,867,220			(24,714,968	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions		(10,000,000	)		(10,000,000	)		(5,000,000	)
Proceeds from investment level debt		11,800,000			12,400,000			11,700,000
Principal payments on investment level debt		(1,016,861	)		(9,953,739	)		(891,728	)
Contributions from noncontrolling interest		—			1,113,456			1,688,870
Distributions to noncontrolling interest		(1,208,560	)		(119,299	)		(68,340	)
Net cash flows provided by (used in) financing activities		(425,421	)		(6,559,582	)		7,428,802
NET CHANGE IN CASH AND CASH
EQUIVALENTS		(11,654,712	)		25,133,281			(8,575,026	)
CASH AND CASH EQUIVALENTS - Beginning of period		43,962,922			18,829,641			27,404,667
CASH AND CASH EQUIVALENTS - End of period	$	32,308,210		$	43,962,922		$	18,829,641

Table of Contents

~~The~~THE ~~accompanying~~PRUDENTIAL ~~notes~~VARIABLE ~~are~~CONTRACT anREAL ~~integral~~PROPERTY ~~part of these consolidated financial statements.~~ PARTNERSHIP

~~F-17~~CONSOLIDATED STATEMENTS OF OPERATIONS



	Years Ended December 31,
	2015			2014		2013
INVESTMENT INCOME:
Revenue from real estate and improvements	$	22,380,282		$	25,529,132	$	28,514,771
Interest income	13,834			17,809		10,992
Total investment income	22,394,116			25,546,941		28,525,763
INVESTMENT EXPENSES:
Operating	3,447,085			5,349,595		6,287,302
Investment management fee	2,822,723			2,567,986		2,529,031
Real estate taxes	2,842,409			2,679,638		2,603,477
Administrative	3,103,510			4,512,902		4,613,032
Interest expense	3,467,345			2,961,914		2,918,051
Total investment expenses	15,683,072			18,072,035		18,950,893
NET INVESTMENT INCOME	6,711,044			7,474,906		9,574,870
RECOGNIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net proceeds from real estate investments sold	12,668,032			13,016,625		46,802,489
Less: Cost of real estate investments sold	14,114,940			11,316,558		45,824,534
Gain (loss) realized from real estate investments sold	(1,446,908		)	1,700,067		977,955
Less: Reversal of prior periods’ unrealized gain (loss) on real estate investments sold	(1,572,787		)	1,223,468		834,772
Net gain (loss) recognized on real estate investments sold	125,879			476,599		143,183
Change in unrealized gain (loss) on real estate investments	12,596,301			6,259,179		8,943,638
NET RECOGNIZED AND UNREALIZED GAIN (LOSS)	12,722,180			6,735,778		9,086,821
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	19,433,224		$	14,210,684	$	18,661,691
Amounts attributable to noncontrolling interest:
Net investment income (loss) attributable to noncontrolling interest	$	642,660		$	645,422	$	449,485
Net unrealized gain (loss) attributable to noncontrolling interest	1,973,734			721,496		1,561,006
Net increase (decrease) in net assets resulting from operations attributable to noncontrolling interest	$	2,616,394		$	1,366,918	$	2,010,491
Amounts attributable to general partners’ controlling interest:
Net investment income attributable to general partners’ controlling interest	$	6,068,384		$	6,829,484	$	9,125,385
Net recognized gain (loss) attributable to general partners’ controlling interest	125,879			476,599		143,183
Net unrealized gain (loss) attributable to general partners’ controlling interest	10,622,567			5,537,683		7,382,632
Net increase (decrease) in net assets resulting from operations attributable to general partners’ controlling interest	$	16,816,830		$	12,843,766	$	16,651,200

~~THE~~The ~~PRUDENTIAL~~accompanying ~~VARIABLE~~notes ~~CONTRACT~~are ~~REAL~~an ~~PROPERTY~~integral ~~PARTNERSHIP~~part of these consolidated financial statements.

~~CONSOLIDATED SCHEDULE OF INVESTMENTS~~ F-15

			2014 Total RentableSquare FeetUnless OtherwiseIndicated (Unaudited)	December 31,2014				December 31, 2013
Property Name	December 31,2014Ownership	City, State		Cost		Estimated FairValue		Cost		Estimated FairValue
OFFICES
750 Warrenville	WO	Lisle, IL	92,209	$	27,964,168	$	6,200,000	$	27,311,648	$	6,400,000
Summit @ Cornell Oaks	WO	Beaverton , OR	72,109		14,072,787		12,500,000		13,848,773		10,300,000
		Offices % as of 12/31/14	10%		42,036,955		18,700,000		41,160,421		16,700,000
APARTMENTS
700 Broadway	CJV	Seattle, WA	59 Units		22,897,489		26,100,000		22,666,478		24,800,000
Broadstone Crossing	WO	Austin, TX	225 Units		23,070,315		27,426,986		22,984,775		27,300,000
Vantage Park	CJV	Seattle, WA	91 Units		21,640,623		25,900,000		21,156,575		24,200,000
The Reserve At Waterford Lakes	WO	Charlotte, NC	140 Units		14,676,752		15,000,000		14,409,301		13,700,000
		Apartments % as of 12/31/14	50%		82,285,179		94,426,986		81,217,129		90,000,000
RETAIL
Hampton Towne Center	WO	Hampton, VA	174,540		18,743,265		20,100,000		18,562,779		18,900,000
White Marlin Mall	CJV	Ocean City, MD	197,098		25,610,596		32,600,000		25,430,335		31,900,000
Westminster Crossing East, LLC	CJV	Westminster, MD	89,890		15,220,559		18,900,000		15,156,172		17,700,000
Publix at Eagle Landing	WO	North Fort Myers, FL	57,840		8,380,272		8,400,000		—		—
Harnett Crossing	WO	Dunn, NC	189,143		8,469,209		3,980,000		6,756,713		3,500,000
Peachtree Corners Market	WO	Norcross, GA	42,185		19,282,716		19,282,715
Village Walk	WO	Roswell, GA	88,504		20,749,324		19,300,000		20,664,003		18,900,000
		Retail % as of 12/31/14	65%		116,455,941		122,562,715		86,570,002		90,900,000
HOTEL
Portland Crown Plaza	CJV	Lake Oswego, OR	Sold		—		—		11,276,532		12,500,000
		Hotel % as of 12/31/14	0%		—		—		11,276,532		12,500,000
Total Real Estate Investments at Estimated Fair Values as a percentage of General Parners’ Controlling Interest as of December 31			125%	$	240,778,075	$	235,689,701	$	220,224,084	$	210,100,000

Table of Contents

WOTHE -PRUDENTIAL ~~Wholly~~VARIABLE ~~Owned~~CONTRACT ~~Investment~~REAL PROPERTY PARTNERSHIP

~~CJV~~CONSOLIDATED -STATEMENTS ~~Consolidated~~OF ~~Joint~~CHANGES ~~Venture~~IN NET ASSETS

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



	Years Ended December 31,
	2015									2014									2013
	General Partners’ Controlling Interest			Non controlling Interest			Total			General Partners’ Controlling Interest			Non controlling Interest			Total			General Partners’ Controlling Interest			Non controlling Interest			Total
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS:
Net investment income (loss)	$	6,068,384		$	642,660		$	6,711,044		$	6,829,484		$	645,422		$	7,474,906		$	9,125,385		$	449,485		$	9,574,870
Net recognized and unrealized gain (loss)	10,748,446			1,973,734			12,722,180			6,014,282			721,496			6,735,778			7,525,815			1,561,006			9,086,821
Increase (decrease) in net assets resulting from operations	16,816,830			2,616,394			19,433,224			12,843,766			1,366,918			14,210,684			16,651,200			2,010,491			18,661,691
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL TRANSACTIONS:
Distributions	(5,000,000		)	(297,804		)	(5,297,804		)	(10,000,000		)	(1,208,560		)	(11,208,560		)	(10,000,000		)	(119,299		)	(10,119,299		)
Contributions	—			333,914			333,914			—			—			—			—			1,113,456			1,113,456
Increase (decrease) in net assets resulting from capital transactions	(5,000,000		)	36,110			(4,963,890		)	(10,000,000		)	(1,208,560		)	(11,208,560		)	(10,000,000		)	994,157			(9,005,843		)
INCREASE (DECREASE) IN NET ASSETS	11,816,830			2,652,504			14,469,334			2,843,766			158,358			3,002,124			6,651,200			3,004,648			9,655,848
NET ASSETS - Beginning of period	188,251,636			9,422,311			197,673,947			185,407,870			9,263,953			194,671,823			178,756,670			6,259,305			185,015,975
NET ASSETS - End of period	$	200,068,466		$	12,074,815		$	212,143,281		$	188,251,636		$	9,422,311		$	197,673,947		$	185,407,870		$	9,263,953		$	194,671,823

~~F-18~~The accompanying notes are an integral part of these consolidated financial statements.

~~Table of Contents~~F-16

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

~~CONSOLIDATED~~THE ~~SCHEDULE~~PRUDENTIAL OFVARIABLE ~~INVESTMENTS~~CONTRACT REAL PROPERTY PARTNERSHIP

	December 31, 2014								December 31, 2013
	Face Amount		Maturity Date	Cost		EstimatedFair Value			Cost		EstimatedFair Value
CASH AND CASH EQUIVALENTS - Percentage of General Partner’s Controlling Interest							17.2	%				23.7	%
Investments in Prudential Investment Liquidity Pool:
Federal Home Loan Bank, 0 coupon bond	$	14,700,000	January, 2015	$	14,700,000	$	14,700,000		$	18,600,000	$	18,600,000
Federal Home Loan Bank, 0 coupon bond		5,000,000	January, 2015		5,000,000		5,000,000			6,800,000		6,800,000
Federal Home Loan Bank, 0 coupon bond		11,000,000	January, 2015		11,000,000		11,000,000			9,998,911		9,998,911
Federal Home Loan Bank, 0 coupon bond					—		—			1,999,711		1,999,711
Federal Home Loan Bank, 0 coupon bond					—		—			2,699,707		2,699,707
Total Cash Equivalents					30,700,000		30,700,000			40,098,329		40,098,329
Cash					1,608,210		1,608,210			3,864,593		3,864,593
Total Cash and Cash Equivalents				$	32,308,210	$	32,308,210		$	43,962,922	$	43,962,922

CONSOLIDATED STATEMENTS OF CASH FLOWS

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



	Years Ended December 31,
	2015	2014	2013
CASH FLOWS FROM OPERATING ACTIVITIES:

Filing Compare · PRUCO LIFE OF NEW JERSEY VARIABLE CONTRACT REAL PROPERTY ACC