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 033-20083-01~~ OR

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

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

~~THE PRUDENTIAL VARIABLE CONTRACT~~ _______________________________________________________

~~REAL~~THE ~~PROPERTY~~PRUDENTIAL ~~ACCOUNT~~INSURANCE COMPANY OF AMERICA

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

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

THE PRUDENTIAL VARIABLE CONTRACT

~~751~~REAL ~~Broad~~PROPERTY ~~Street, Newark, New Jersey 07102~~ 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		22-1211670
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)

~~SECURITIES~~751 ~~REGISTERED~~Broad ~~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 by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES x NO ¨ _______________________________________________________

~~Indicate~~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~~b) ~~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~~SECURITIES byREGISTERED ~~check~~PURSUANT ~~mark~~TO ifSECTION ~~disclosure of delinquent filers pursuant to Item 405 of Regulation S-K~~ 12(~~§ 229.405 of this chapter~~g) isOF ~~not~~THE ~~contained~~ACT: 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 NONE

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~~YES ¨x NoNO 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 ¨

~~THE~~Indicate ~~PRUDENTIAL~~by ~~VARIABLE~~check ~~CONTRACT~~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

~~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 ¨

~~IND EX~~ 1

Item No.		Page No.
	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		26
12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters		26
13.	Certain Relationships and Related Transactions, and Director Independence		26
14.	Principal Accountant Fees and Services		26
PART IV
15.	Exhibits and Financial Statement Schedules		27
	Exhibit Index		27
	Signatures		29

Table of Contents

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

~~Table of Contents~~2

~~Forward-Looking~~Table ~~Statement~~of ~~Disclosure~~ Contents

~~Certain~~THE ofPRUDENTIAL ~~the~~VARIABLE 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 The Prudential Insurance Company of America, or the “Company”, or The Prudential Variable Contract Real Property Account, or the “Real Property Account”. There can be no assurance that future developments affecting the Company and the Real Property Account will be those anticipated by management. These forward-looking statements are not a guarantee of future performance and involve risks and uncertainties, and there are certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements, including, among others: (1) general economic, market and political conditions, including the performance and fluctuations of fixed income, equity, real estate and other financial markets; (2) interest rate fluctuations or prolonged periods of low interest rates; (3) reestimates of our reserves for future policy benefits and claims; (4) differences between actual experience regarding mortality, morbidity, persistency, utilization, interest rates, or market returns and the assumptions we use in pricing our products, establishing liabilities and reserves or for other purposes; (5) changes in our assumptions related to deferred policy acquisition costs and value of business acquired; (6) changes in our financial strength or credit ratings; (7) investment losses and defaults; (8) competition in our product lines and for personnel; (9) changes in tax law; (10) regulatory or legislative changes, including the Dodd-Frank Wall Street Reform and Consumer Protection Act; (11) adverse determinations in litigation or regulatory matters and our exposure to contingent liabilities; (12) domestic or international military actions, natural or man-made disasters including terrorist activities or pandemic disease, or other events resulting in catastrophic loss of life; (13) ineffectiveness of risk management policies and procedures in identifying, monitoring and managing risks; (14) changes in statutory or accounting principles generally accepted in the United States of America, or “U.S. GAAP”, practices or policies; and (15) interruption in telecommunication, information technology or other operational systems or failure to maintain the security, confidentiality or privacy of sensitive data on such systems. The Company and the Real Property Account do not intend, and are under no obligation, to update any particular forward-looking statement included in this document. See “Risk Factors” included in 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. CONTRACT

~~This~~REAL ~~report~~PROPERTY 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. ACCOUNT

3 (Registrant)

~~Table of Contents~~INDEX

PART I



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	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	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	25
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

~~Item 1. Business~~2

~~The~~Table Prudential Variable Contract Real Property Account (the “Real Property Account” or the “Registrant”) was established on November 20, 1986. Pursuant to New Jersey law, the Real Property Account was established as a separate investment account of The Prudential Insurance Company of America (“Prudential” or the “Company”). The Real Property Account was established to provide a real estate investment option offered in connection with the funding of benefits under certain variable life insurance and variable annuity contracts (the “Contracts”) issued by Prudential. Contents

~~The~~Forward-Looking ~~assets~~Statement 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 Prudential, Pruco Life Insurance Company and Pruco Life Insurance Company 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. Disclosure

~~The~~Certain ~~Partnership~~of ~~has~~the anstatements ~~investment~~included ~~policy~~in this Annual Report on Form 10-K, including but not limited to those in Management’s Discussion and Analysis of ~~investing~~Financial atCondition ~~least~~and ~~65%~~Results of ~~its~~Operations, ~~assets~~constitute inforward-looking ~~direct~~statements ~~ownership interests~~within inthe ~~income~~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-~~producing~~looking ~~real~~statements. ~~estate~~Forward-looking statements are made based on management’s current expectations and ~~participating~~beliefs ~~mortgage~~concerning ~~loans.~~future developments and their potential effects upon The ~~largest~~Prudential ~~portion~~Insurance Company of ~~these~~America, ~~real~~or ~~estate~~the ~~investments~~“Company”, or The Prudential Variable Contract Real Property Account, or the “Real Property Account”. There can be no assurance that future developments affecting the Company and the Real Property Account will be those anticipated by management. These forward-looking statements are ~~direct~~not ~~ownership~~a ~~interests~~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 ~~income~~such forward-~~producing~~looking statements, including, among others: (1) general economic, market and political conditions, including the performance and fluctuations of fixed income, equity, real estate, ~~such~~and asother ~~office~~financial ~~buildings~~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, ~~shopping~~morbidity, ~~centers~~persistency, ~~hotels~~utilization, ~~apartments~~ interest rates, or ~~industrial~~market ~~properties~~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. ~~Approximately~~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 ~~the~~life; ~~Partnership’s~~(12) ineffectiveness ~~assets~~of ~~are~~risk ~~generally~~management ~~held~~policies and procedures in ~~cash~~identifying, monitoring and managing risks; (13) changes in statutory or ~~invested~~accounting principles generally accepted in ~~liquid~~the ~~instruments~~United States of America, or “U.S. GAAP”, practices or policies; and ~~securities~~(14) interruption ~~although~~in telecommunication, information technology or other operational systems or failure to maintain the ~~General~~security, ~~Partners~~confidentiality ~~reserve~~or ~~discretion~~privacy of sensitive data on such systems. The Company and the Real Property Account do not intend, and are under no obligation, to ~~increase~~update any particular forward-looking statement included in this ~~amount~~document. See “Risk Factors” included in this Annual Report on Form 10-K for discussion of certain risks relating to ~~meet partnership~~the ~~liquidity~~operation ~~requirements.~~of The Prudential Variable Contract Real Property Partnership or “Partnership” and investment in our securities.

~~Office~~This ~~Properties~~report –includes ~~The~~real ~~Partnership~~estate ~~owns~~market ~~office~~data. ~~properties~~Market indata ~~Lisle,~~is ~~Illinois~~subject to change and ~~Beaverton,~~ ~~Oregon.~~there ~~Total~~are ~~square~~limits ~~footage~~on ~~owned~~the isavailability ~~approximately~~and ~~164,318,~~reliability of ~~which~~raw ~~65%,~~data orand ~~107,517~~other ~~square~~limitations ~~feet,~~and ~~are~~uncertainties ~~leased~~inherent ~~between~~in 1any ~~and~~survey 5of ~~years.~~market data.

Apartment Complexes – 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. 3

~~Retail~~Table 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 1 and 17 years.~~ Contents

~~Investment~~Throughout inthis ~~Real~~Annual ~~Estate~~Report ~~Investment~~on ~~Trust~~Form ~~(“REIT”)~~10-K, –the ~~The~~"Real ~~Partnership~~Property ~~liquidated~~Account" ~~its~~and ~~entire~~the ~~investment~~"Registrant" inrefer ~~REIT shares~~to inThe ~~December~~Prudential ~~2001~~Variable ~~and~~Contract ~~its~~Real ~~preferred~~Property ~~equity~~Account. "Prudential" ~~investment~~or inthe a"Company" ~~REIT~~refers into ~~March~~The ~~2012.~~Prudential Insurance Company of America.

~~The~~PART Partnership’s investments are maintained so as to meet the diversification requirements set forth in treasury regulations issued pursuant to Section 817(h) of the Internal Revenue Code relating to the investments of variable life insurance and variable annuity separate accounts. Section 817(h) requires, among other things, that the partnership will have no more than 55% of the assets invested in any one investment, no more than 70% of the assets will be invested in any two investments, no more than 80% of the assets will be invested in any three investments, and no more than 90% of the assets will be invested in any four investments. To comply with regulatory requirements of the State of Arizona, the Partnership will limit additional investments in any one parcel or related parcels to an amount not exceeding 10% of the Partnership’s gross assets as of the prior fiscal year. I

~~For 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~~1. Business

The ~~following~~Prudential isVariable aContract ~~description~~Real ofProperty ~~general~~Account ~~conditions~~(the in“Real Property Account” or the ~~U.S.~~“Registrant”) ~~real~~was ~~estate~~established ~~markets.~~on ItNovember ~~does~~20, ~~not~~1986. ~~relate~~Pursuant to ~~specific properties~~New ~~held~~Jersey bylaw, the ~~Partnership.~~Real ~~The~~Property ~~Partnership~~Account ~~does~~was ~~not~~established ~~have~~as ~~widely~~a ~~diversified~~separate ~~holdings;~~investment ~~therefore,~~account ~~the~~of ~~discussions~~The Prudential Insurance Company of ~~vacancy~~America ~~rates,~~(“Prudential”). ~~property~~The ~~values~~Real ~~and~~Property ~~returns~~Account inwas ~~this~~established ~~section~~to ~~are~~provide ~~not~~a ~~necessarily~~real ~~relevant~~estate toinvestment ~~the~~option ~~Partnership’s~~offered ~~portfolio. These~~in ~~results~~connection ~~are~~with ~~not~~the ~~indicative~~funding of ~~future~~benefits ~~performance.~~under certain variable life insurance and variable annuity contracts (the “Contracts”) issued by Prudential.

4The 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 Prudential, Pruco Life Insurance Company and Pruco Life Insurance Company 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.

~~Table~~The Partnership has an investment policy of ~~Contents~~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.

~~Market~~Office ~~Conditions~~Properties - The Partnership owns an office property in Lisle, Illinois. Total square footage owned is approximately 92,209, of which 38%, or 35,408 square feet, are leased between 1 and 5 years.

~~The~~Apartment ~~U.S.~~Complexes ~~economy~~- ~~significantly~~The ~~improved~~Partnership inowns ~~2014,~~apartment ~~which~~properties ~~supported solid gains~~ in ~~real~~Austin, ~~estate~~Texas; ~~fundamentals.~~Charlotte, ~~GDP~~North ~~grew~~Carolina; atMaplewood, anNew ~~annualized~~Jersey; ~~rate~~and ofSeattle, ~~5% in~~Washington, ~~the~~comprising ~~third~~a ~~quarter~~total of ~~2014~~565 ~~according~~apartment tounits, ~~the Bureau~~ of ~~Economic~~which ~~Analysis~~93%, anor ~~agency~~525 ofunits, ~~the~~are ~~US Department of Commerce that provides economic statistics~~leased. ~~This~~Leases ~~marked~~range ~~the~~from ~~strongest~~month-to-month ~~annualized~~to ~~rate~~eighteen ~~of economic growth since the third quarter of 2003~~months. In ~~At the same time~~addition, the ~~U.S.~~Partnership ~~labor~~owns ~~market~~an ~~improved.~~apartment ~~Employment~~development ~~expanded~~in byChicago, ~~2.1%~~Illinois, inthat ~~2014,~~once upcompleted ~~from~~will ~~1.7%~~total in60 ~~2013~~units.

~~Debt~~Retail ~~Markets~~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 which 84%, or 703,837 square feet, are leased between 1 and 17 years.

~~The~~Investment ~~lending market remained favorable for borrowers~~ in ~~2014.~~Real ~~The~~Estate ~~U.S.~~Trust 10-~~year~~ ~~Treasury~~The ~~rate~~Partnership ~~fell~~liquidated byits ~~approximately~~entire 70investment ~~basis points during 2014. Issuance of mortgage-backed securities increased by 9% to $94 billion~~ in ~~2014~~REIT ~~from~~shares ~~$86 billion~~ in ~~the~~December ~~previous~~2001 ~~year,~~and ~~according~~its topreferred ~~Commercial~~equity ~~Mortgage~~investment ~~Alert,~~in a ~~trade~~REIT ~~publication that tracks the commercial mortgage market. In addition, originations of commercial and multifamily lending was up 16% year-over-year~~ in ~~the~~March ~~third quarter of 2014 per data from the Mortgage Bankers Association~~2012.

~~REIT~~The ~~Market~~Partnership’s investments are maintained so as to meet the diversification requirements set forth in treasury regulations issued pursuant to Section 817(h) of the Internal Revenue Code relating to the investments of variable life insurance and variable annuity separate accounts. Section 817(h) requires, among other things, that the partnership will have no more than 55% of the assets invested in any one investment, no more than 70% of the assets will be invested in any two investments, no more than 80% of the assets will be invested in any three investments, and no more than 90% of the assets will be invested in any four investments. To comply with regulatory requirements of the State of Arizona, the Partnership will limit additional investments in any one parcel or related parcels to an amount not exceeding 10% of the Partnership’s gross assets as of the prior fiscal year.

~~The~~For USinformation ~~REIT market~~regarding ~~recorded~~the ~~sizeable~~Partnership’s ~~gains~~investments, inoperations, ~~2014.~~and ~~The~~other ~~FTSE~~significant ~~NAREIT~~events, ~~Equity~~see ~~REIT~~Item ~~Index~~7, ~~which~~Management’s ~~tracks~~Discussion ~~the~~and ~~performance~~Analysis of USFinancial ~~equity~~Condition ~~REITs~~ and isResults ~~published~~of ~~jointly~~Operations ~~by the FTSE Group~~ and ~~the~~Financial ~~National~~Statements ~~Association of Real Estate Investment Trusts, showed a return of 28% in 2014, compared to 2.9% in 2013. Fund inflows to REIT mutual funds~~ and ~~exchange~~Supplementary ~~traded funds totaled approximately $18~~Data.1 ~~billion in 2014, bringing the total assets under management to $237.3 billion according to Citi Research, the internal research division of Citigroup.~~

~~Property~~The ~~Markets~~following is a description of general conditions in the U.S. real estate markets. It does not relate to specific properties held by the Partnership. The Partnership does not have widely diversified holdings; therefore, the discussions of vacancy rates, property values and returns in this section are not necessarily relevant to the Partnership’s portfolio. These results are not indicative of future performance and not necessarily indicative of the performance of the Partnership.

~~Real~~Market 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. Conditions

~~Apartment:~~ The ~~national~~U.S. ~~apartment~~economy ~~vacancy~~remained ~~rate~~on ~~ended~~a ~~2014~~steady atpath ~~5.1%~~of growth in 2015, ~~down~~which 40supported ~~basis~~continued ~~points~~improvement ~~from~~in ~~2013~~real ~~according~~estate tofundamentals. ~~Axiometrics~~Real ~~data~~GDP expanded at an average annual pace of 2. ~~Absorption~~2% ~~continued~~in tothe ~~exceed~~first ~~net~~three ~~completions~~quarters ~~despite~~of the ~~inventory~~year, ~~growth~~close to the 2.4% Inrate ~~addition~~in 2014, ~~the~~according ~~average~~to ~~apartment~~the ~~effective~~U.S. ~~rental~~Bureau ~~rate~~of ~~expanded~~Economic byAnalysis. 4The U.7%S. labor market also strengthened with total employment

~~Retail: Demand grew while completions remained below historical trends according to CoStar Portfolio Strategy. As a result, vacancies fell by approximately 50 basis points.~~ 4

~~Office:~~Table ~~National~~of office vacancies fell by a full percentage point in 2014 to their lowest levels since 2007 according to data from CBRE Econometric Advisors. Inventory growth amounted to 0.6%, which was below its 15-year historical annual average rate. Contents

~~Industrial:~~expanding ~~National warehouse demand expanded~~ by 1.19% inand ~~2014~~the ~~according~~unemployment torate ~~CoStar~~declining ~~Portfolio~~to ~~Strategy.~~a ~~Deliveries~~post-recessionary ~~of new industrial product increased but remained below historical trends~~low, ~~reducing~~as ~~vacancies~~reported by 60the ~~basis points~~U.S. ~~Improving~~Bureau ~~fundamentals allowed for rent growth~~ of ~~4.3%,~~Labor ~~consistent with the 2013 level~~Statistics.

~~Hotel:~~Property Hotel occupancies rose by 2.3 percentage points year-over-year as of the third quarter of 2014 and are at their highest levels since 1997, according to CoStar Portfolio Strategy. Strong occupancies supported an increase in revenue per available room amounting to 10.1% over the same time period. Markets

5Real estate demand continued to expand across property types. Apartment market vacancies ended 2015 slightly lower than in the previous year, despite the significant amount of development activity. Inventory growth remained at or below the 15-year historical averages for 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.

~~Table~~Apartment: ofNational ~~Contents~~apartment vacancies continued to improve in 2015, owing to continued strong demographic trends. This strength contributed to rapid rent growth across the nation.

~~Item~~Retail: 1AU.S. ~~Risk~~retail ~~Factors~~market fundamentals continued to improve in 2015 over 2014. Stronger consumption trends pushed up tenant demand, while new supply remains limited. As a result, vacancies fell to their lowest levels on record.

~~You~~Office: ~~should~~The ~~carefully~~office ~~consider~~market ~~the~~recovery ~~following~~continued ~~risks. These risks are not exclusive, and additional risks~~ to ~~which~~gain wemomentum ~~are~~in ~~subject~~2015. ~~include,~~Accelerating ~~but are~~office-using ~~not~~employment ~~limited~~growth continues to, ~~the~~generate ~~factors~~stronger ~~mentioned under “Forward~~take-~~Looking~~up ~~Statements” above and the risks~~ of ~~our~~office ~~business described elsewhere in this Annual Report on Form 10-K~~space. ~~Many~~At ofthe ~~these~~same ~~risks are interrelated and could occur under similar business and economic conditions~~time, ~~and~~inventory ~~the~~growth ~~occurrence~~remained ofbelow ~~certain~~its of15-year ~~them~~historical ~~may~~annual inaverage ~~turn cause the emergence or exacerbate the effect of others~~rate. ~~Such~~As a ~~combination~~result, ~~could~~vacancies ~~materially~~tightened ~~increase the severity of the impact of these risks on our businesses~~further, ~~results~~ ~~of operations, financial condition~~ and ~~liquidity.~~rent ~~Throughout~~growth ~~this~~accelerated ~~section~~from ~~“we”~~2014 ~~and “our” refer to the Company~~levels.

~~Market~~Industrial: ~~fluctuations~~National ~~and~~industrial ~~general~~absorption ~~economic,~~outpaced ~~market~~completions. ~~and~~Vacancies ~~political~~are ~~conditions~~generally ~~may~~at ~~adversely~~their ~~affect~~lowest ~~our~~levels ~~business~~since ~~and~~1999. ~~profitability~~Healthy fundamentals boosted rent growth to a post-recessionary highs in 2015.

~~Our~~Hotel: ~~business~~The ~~and~~hotel ~~our~~market ~~results~~continued ofto ~~operations~~improve ~~may~~in be2015. ~~materially~~Strong ~~adversely~~occupancies ~~affected~~supported bya ~~conditions~~substantial increase in ~~the~~revenue ~~global~~per ~~financial~~available ~~markets~~room ~~and~~in by2015, ~~economic conditions~~though ~~generally~~this marked a moderation in growth from the previous year.

Even under relatively favorable market conditions, our insurance and annuity products, as well as our investment returns and our access to and cost of financing, are sensitive to fixed income, equity, real estate and other market fluctuations and general economic, market and political conditionsItem 1A. ~~These~~Risk ~~fluctuations and conditions could adversely affect our results of operations, financial position and liquidity, including in the following respects:~~ Factors

•You ~~The~~should ~~profitability~~carefully ofconsider ~~many~~the following risks. These risks are not exclusive, and additional risks to which we are subject include, but are not limited to, the factors mentioned under “Forward-Looking Statements” above and the risks of our ~~insurance~~business described elsewhere in this Annual Report on Form 10-K. Many of these risks are interrelated and ~~annuities~~could ~~products~~occur ~~depends~~under similar business and economic conditions, and the occurrence of certain of them may in ~~part~~turn oncause the ~~value~~emergence, or exacerbate the effect of, others. Such a combination could materially increase the ~~separate~~severity ~~accounts~~of ~~supporting~~the impact of these ~~products~~risks on our businesses, ~~which~~results ~~can~~of ~~fluctuate~~operations, ~~substantially~~financial ~~depending~~condition onand ~~the~~liquidity. ~~foregoing~~Throughout ~~conditions~~this section “we” and “our” refer to the Company.

•Market Afluctuations ~~change~~and ingeneral ~~market conditions~~economic, ~~such~~market ~~as high inflation~~ and ~~high~~political ~~interest~~conditions ~~rates,~~may ~~could cause a change in consumer sentiment and behavior~~ adversely ~~affecting~~affect ~~sales and persistency of~~ our ~~savings~~business and ~~protection products. Conversely, low inflation and low interest rates could cause persistency of these products to vary from that anticipated and adversely affect~~ profitability ~~(as further described below)~~. ~~Similarly, changing economic conditions and unfavorable public perception of financial institutions can influence customer behavior, including increasing claims or surrenders in certain product lines.~~

~~Adverse~~Our ~~capital~~business ~~market conditions could significantly affect our ability to meet liquidity needs, our access to capital~~ and our ~~cost~~results of ~~capital,~~ ~~including~~operations ~~capital that~~ may be ~~required~~materially byadversely ~~the~~affected ~~Company’s~~by ~~subsidiaries. Under such~~ conditions, wein ~~may~~the ~~seek~~global ~~additional~~financial ~~debt~~markets orand ~~equity~~by ~~capital~~economic ~~but~~conditions ~~may be unable to obtain it~~generally.

~~Adverse~~Even ~~capital~~under relatively favorable market conditions, ~~could~~our ~~affect~~insurance ~~the~~and ~~availability~~annuity ~~and~~products, ~~cost~~as ofwell ~~borrowed~~as ~~funds~~our ~~and~~investment ~~could~~returns ~~impact~~and our ~~ability~~access to ~~refinance~~and ~~existing borrowings,~~cost ~~thereby~~of ~~ultimately~~financing, ~~impacting~~are ~~our~~sensitive ~~profitability and ability~~ to ~~support~~fixed orincome, ~~grow~~equity, ~~our~~real ~~businesses.~~estate Weand ~~need~~other ~~liquidity~~market tofluctuations ~~pay~~and ~~our~~general ~~operating expenses~~economic, ~~interest,~~market and ~~maturities~~political onconditions. ~~our~~These ~~debt~~fluctuations and ~~dividends~~conditions oncould ~~our~~adversely ~~capital~~affect ~~stock.~~our ~~The~~results ~~principal sources~~ of ~~our liquidity are insurance premiums~~operations, ~~annuity~~financial ~~considerations,~~position ~~cash~~and ~~flow from our investment portfolio~~liquidity, ~~and~~including ~~fees~~in ~~from~~the ~~separate~~following ~~account assets.~~ respects:

In• ~~the~~The ~~normal~~profitability ~~course~~ of ~~business,~~many ~~the~~of ~~Partnership~~our ~~enters~~insurance ~~into~~and ~~loan~~annuities ~~agreements~~products ~~with~~depends ~~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 apart ~~decision~~on ~~by lenders not to extend credit to~~ the ~~Partnership.~~value ~~There~~of ~~is no guarantee that~~ the ~~Partnership’s borrowing~~separate ~~arrangements~~accounts orsupporting ~~ability~~these ~~to obtain leverage will continue to be available~~products, orwhich ifcan ~~available,~~fluctuate ~~will~~substantially bedepending ~~available~~ on ~~terms and conditions acceptable to~~ the ~~Partnership.~~foregoing ~~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, 2014, the Partnership had no outstanding matured loans.

• A ~~decline~~change in market ~~value~~conditions, ofsuch ~~the~~as ~~Partnership’s~~high ~~assets~~inflation ~~may~~and ~~also~~high ~~have~~interest ~~particular~~rates, ~~adverse consequences~~could incause ~~instances~~a ~~where~~change ~~the~~in ~~Partnership~~consumer ~~borrowed~~sentiment ~~money~~and ~~based~~behavior onadversely ~~the~~affecting ~~fair~~sales ~~value~~and persistency of ~~specific~~our ~~assets~~savings and protection products. AConversely, ~~decrease~~low ininflation ~~market~~and ~~value~~low interest rates could cause persistency of these ~~assets~~products ~~may~~to ~~result~~vary infrom ~~the~~that ~~lender~~anticipated ~~requiring~~and ~~the~~adversely ~~Partnership~~affect toprofitability ~~post~~(as ~~additional~~further ~~collateral~~described below). Similarly, changing economic conditions and unfavorable public perception of financial institutions can influence customer behavior, including increasing claims or ~~otherwise~~surrenders ~~repay these~~in ~~loans.~~certain product lines.

InAdverse ~~the~~capital ~~event~~market ~~the~~conditions ~~Partnership’s~~could ~~current~~significantly ~~investment~~affect ~~obligations~~our ~~are~~ability ~~not~~to ~~refinanced~~meet orliquidity ~~extended~~needs, ~~when~~our ~~they~~access ~~become~~to ~~due~~ capital and~~/or~~ ~~the~~our ~~Partnership~~cost isof ~~required~~capital, toincluding ~~repay~~capital ~~such~~that ~~borrowings~~may ~~and~~be ~~obligation,~~required ~~management~~by ~~anticipates that~~ the ~~repayment~~Company’s ofsubsidiaries. ~~these~~Under ~~obligations~~such ~~will~~conditions, bewe ~~provided~~may byseek ~~operating~~additional ~~cash~~debt ~~flow,~~or ~~new~~equity ~~debt~~capital ~~refinancing,~~but ~~and~~may ~~real~~be ~~estate~~unable ~~investment~~to ~~sales.~~obtain it.

6Adverse capital market conditions could affect the availability and cost of borrowed funds and could impact our ability to refinance existing borrowings, thereby ultimately impacting our profitability and ability to support or grow our businesses. We need liquidity to pay our operating expenses, interest, and maturities on our debt and dividends on our capital stock. The principal sources of our

~~Table of Contents~~5

~~The~~Table ~~companies~~of ~~offering the Contracts and the Partnership are heavily regulated and changes in regulation may reduce our profitability.~~ Contents

~~Our~~liquidity ~~business is subject to comprehensive regulation and supervision. The purpose of this regulation is primarily to protect our customers. Many of the laws and regulations to which we~~ are ~~subject~~insurance ~~are~~premiums, ~~regularly~~annuity ~~re-examined~~considerations, ~~and~~cash ~~existing~~flow orfrom ~~future laws and regulations may become more restrictive or otherwise adversely affect~~ our ~~operations.~~ ~~The~~investment ~~financial market dislocations we have experienced have produced~~portfolio, and ~~are~~fees ~~expected~~from toseparate ~~continue~~account ~~to produce, extensive changes in existing laws and regulations, and regulatory frameworks, applicable to our business~~assets.

~~The~~In ~~Registrant~~the isnormal ~~subject~~course toof business, the ~~rules~~Partnership ~~and~~enters ~~regulations~~into ofloan ~~the~~agreements ~~Securities~~with ~~and~~certain ~~Exchange~~lenders ~~Commission relating~~ to ~~public~~finance ~~reporting~~its ~~and~~real ~~disclosure, accounting~~estate ~~and~~investment ~~financial~~transactions. ~~reporting,~~Unfavorable ~~and~~economic ~~corporate~~conditions ~~governance~~could ~~matters.~~increase ~~The~~related ~~Sarbanes-Oxley~~borrowing ~~Act~~costs, oflimit ~~2002~~access ~~and~~to ~~rules~~the ~~and~~capital ~~regulations~~markets ~~adopted~~or result in ~~furtherance~~a ofdecision ~~that~~by ~~Act~~lenders ~~have~~not ~~substantially~~to ~~increased~~extend ~~the~~credit ~~requirements~~to inthe ~~these~~Partnership. ~~and~~There ~~other~~is ~~areas~~no ~~for~~guarantee that the ~~Registrant~~ ~~and~~Partnership’s ~~certain~~borrowing ofarrangements ~~its~~or ~~affiliates.~~ability ~~The~~to ~~Registrant’s~~obtain ~~internal~~leverage ~~controls~~will ~~over~~continue ~~financial~~to ~~reporting~~be ~~may~~available, ~~have~~or ~~gaps~~if oravailable, ~~other~~will ~~deficiencies~~be available on terms and ~~there~~conditions isacceptable noto ~~assurance~~the ~~that~~Partnership. ~~significant~~Further, ~~deficiencies~~these orloan ~~material~~agreements ~~weaknesses~~contain, inamong ~~internal~~other ~~controls~~conditions, ~~may not~~events ~~occur~~of indefault ~~the~~and ~~future~~various covenants and representations. ~~Any~~In ~~such~~the ~~gaps~~normal orcourse ~~deficiencies~~of business, the Partnership may ~~require~~be ~~significant~~in ~~resources~~the toprocess ~~remediate~~of ~~and~~renegotiating ~~may~~terms ~~also~~for ~~expose~~loans ~~the~~outstanding ~~Registrant~~that tohave ~~litigation~~passed their maturity dates. At December 31, ~~regulatory~~2015, ~~fines~~the orPartnership ~~penalties~~had orno ~~other~~outstanding ~~losses.~~matured loans.

~~Many~~A ~~insurance~~decline ~~regulatory~~in ~~and~~market ~~other~~value ~~governmental~~of ~~or self-regulatory bodies have~~ the ~~authority~~Partnership’s toassets ~~review~~may ~~our~~also ~~products~~have ~~and~~particular ~~business~~adverse ~~practices and~~consequences ~~those~~in ofinstances ~~our~~where ~~agents~~the ~~and~~Partnership ~~employees~~borrowed ~~and~~money tobased ~~bring~~on ~~regulatory~~the orfair ~~other~~value ~~legal~~of ~~actions~~specific ~~against~~assets. usA ~~if,~~decrease in ~~their~~market ~~view,~~value ~~our practices, or those~~ of ~~our~~these ~~agents~~assets ormay ~~employees, are improper. These actions can~~ result in ~~substantial~~the ~~fines,~~lender ~~penalties~~requiring ~~or prohibitions~~the orPartnership ~~restrictions~~to onpost ~~our~~additional ~~business~~collateral ~~activities~~or ~~and~~otherwise ~~could~~repay ~~adversely~~these ~~affect our business, reputation, results of operations or financial condition~~loans.

~~Insurance~~In ~~regulators~~the ~~continue~~event tothe ~~develop~~Partnership’s acurrent ~~principles~~investment ~~based~~obligations ~~reserving~~are ~~approach~~not ~~for~~refinanced ~~life~~or ~~insurance~~extended ~~products.~~when ~~The~~they ~~timing~~become due and/or the ~~effect~~Partnership is required to repay such borrowings and obligation, management anticipates that the repayment of these ~~changes~~ ~~are~~obligations ~~still~~will ~~uncertain.~~be provided by operating cash flow, new debt refinancing, and real estate investment sales.

~~Compliance~~The ~~with~~companies ~~applicable~~offering ~~laws~~the Contracts and ~~regulations~~the isPartnership ~~time~~are ~~consuming~~heavily ~~and~~regulated ~~personnel-intensive,~~ and changes in ~~these~~ ~~laws~~regulation ~~and regulations~~ may ~~materially~~adversely ~~increase~~affect our ~~direct~~results ~~and~~of ~~indirect~~operations ~~compliance~~ and ~~other expenses of doing business, thus having a material adverse effect on our~~ financial condition ~~or results of operations~~.

~~The~~Our ~~Dodd-Frank~~business ~~Wall~~is ~~Street~~subject ~~Reform~~to comprehensive regulation and ~~Consumer~~supervision. ~~Protection~~The ~~Act~~purpose ~~(“Dodd~~of ~~Frank”)~~this ~~subjects~~regulation ~~the~~is ~~Company,~~primarily ~~its~~to ~~parent~~protect our customers. Many of the laws and ~~its~~regulations ~~affiliates~~ to ~~substantial~~which ~~additional~~we ~~federal~~are ~~regulation~~subject are regularly re-examined, and weexisting ~~cannot~~or ~~predict~~future ~~the~~laws ~~effect~~and onregulations may become more restrictive or otherwise adversely affect our ~~business~~operations. The financial market dislocations we have experienced have produced, ~~results~~and ofare ~~operations~~expected to continue to produce, ~~cash~~extensive ~~flows~~changes orin ~~financial~~existing ~~condition.~~laws and regulations, and regulatory frameworks, applicable to our business.

OnCompliance ~~September 19,~~with ~~2013,~~applicable ~~the~~laws Financial Stability Oversight Council (the “Council”) made a final determination that Prudential Financial, Inc. (“Prudential Financial”), the ultimate parent of the Company, should be subject to stricter prudential regulatory standards and supervision by the Board of Governors of the Federal Reserve Board (“FRB”) as a “Designated Financial Company” pursuant to Dodd-Frank, thereby subjecting us to substantial federal regulation, much of it pursuant to regulations ~~not~~is ~~yet~~time ~~promulgated.~~consuming ~~Dodd-Frank directs existing~~ and ~~newly~~personnel-~~created~~intensive, ~~government agencies~~ and ~~bodies~~ tochanges ~~promulgate~~in ~~regulations~~these ~~implementing~~laws ~~the law, a process that is underway~~ and ~~expected to continue over the next few years. We cannot predict with any certainty the requirements of the~~ regulations ~~recently~~may ormaterially ~~not~~increase ~~yet~~our ~~adopted~~direct ~~or how Dodd-Frank~~ and ~~such~~indirect ~~regulations~~compliance ~~will~~and ~~affect~~other ~~the~~expenses ~~financial~~of ~~markets~~doing ~~generally, impact our~~ business, ~~Prudential~~thus ~~Financial’s~~having ~~credit~~a ~~ratings~~material oradverse ~~the~~effect ~~Company’s~~on ~~financial~~our ~~strength ratings, results of operations, cash flows or~~ financial condition or ~~advise~~ or ~~require~~results ~~us to hold or raise additional capital or liquid assets. Key aspects~~ of ~~Dodd-Frank’s impact on us include:~~ operations.

•The 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 ruleDodd-~~making)~~Frank ~~relating~~Wall toStreet ~~risk-based~~Reform ~~capital, leverage, liquidity, risk management,~~ and ~~credit~~Consumer ~~concentration,~~Protection ~~and~~Act ~~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~~Dodd Frank”) ~~jointly~~subjects ~~determine~~the ~~that Prudential Financial’s plan is deficient~~Company, ~~they~~its ~~may~~parent 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~~its ~~FDIC~~affiliates ~~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~~additional onfederal ~~Prudential~~regulation ~~Financial’s business~~ and ~~capital~~we ~~distributions.~~cannot ~~Prudential~~predict ~~Financial is now also subject to stress tests to be promulgated by~~ the ~~FRB~~effect ~~which~~on ~~could cause Prudential Financial to alter~~ our business, ~~practices~~results ~~or affect the perceptions~~ of ~~regulators~~operations, ~~rating~~cash ~~agencies,~~flows ~~customers, counterparties~~ or ~~investors of our~~ financial ~~strength~~condition. 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.

7In 2013, the Financial Stability Oversight Council (the “Council”) made a final determination that Prudential Financial, Inc. (“Prudential Financial”), the ultimate parent of the Company, should be subject to stricter prudential regulatory standards and supervision by the Board of Governors of the Federal Reserve Board (“FRB”) as a “Designated Financial Company” pursuant to Dodd-Frank, thereby subjecting us to substantial federal regulation, much of it pursuant to regulations not yet promulgated. Dodd-Frank directs existing and newly-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 timing or 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, 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:

~~Table~~• As a Designated Financial Company, Prudential Financial is now subject to supervision and examination by the FRB and to stricter prudential standards, which include or will include requirements and limitations (many of ~~Contents~~which are the subject of ongoing rule-making) relating to capital, leverage, liquidity, stress-testing, overall risk management, credit exposure reporting, early remediation, managing interlocks, credit concentration and resolution, and recovery planning. If the FRB and the Federal Deposit Insurance Corporation (“FDIC”) jointly determine that Prudential Financial’s resolution plan is deficient, they may impose more stringent capital, leverage, or liquidity requirements, or restrictions on our growth, activities, or operations. Any 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. 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,

• 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.6

•Table 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.~~Contents

•customers, ~~Dodd-Frank~~counterparties ~~creates~~or ainvestors ~~new framework for regulation~~ of ~~the~~our ~~over-the-counter~~financial (“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)strength. ~~While~~We ~~many~~cannot ofpredict the ~~regulations~~requirements ~~required~~of ~~to be promulgated under Dodd-Frank with respect to derivatives markets have been adopted by~~ the ~~applicable regulatory agencies, the~~ regulations ~~that~~not ~~remain~~yet ~~to be~~ adopted or ~~that~~how ~~have not been fully implemented could substantially increase~~ the ~~cost~~FRB ofwill ~~hedging~~apply ~~and~~these ~~related~~prudential ~~operations,~~standards ~~affect the profitability of our products or their attractiveness~~ to ~~our~~Prudential ~~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~~Financial. InAs ~~particular,~~a ~~final~~Designated ~~rules~~Financial ~~regarding margin requirements for OTC derivatives have not been adopted~~Company, ~~and~~Prudential ~~any~~Financial ~~margin~~must ~~rules~~also ~~applicable~~seek topre-approval ~~the~~from ~~Company may be more onerous than~~ the ~~collateral~~FRB ~~posting~~for ~~requirements~~acquisition ~~under~~of ~~our~~certain ~~existing~~companies ~~OTC~~engaged ~~derivatives~~in ~~contracts~~financial activities.

• ~~Title~~As ~~II of Dodd-Frank provides that~~ a ~~financial~~Designated ~~company~~Financial ~~such~~Company, as Prudential Financial ~~may~~could also be subject to aadditional ~~special~~capital ~~orderly~~requirements ~~liquidation process outside the federal bankruptcy code~~for, ~~administered by the FDIC as receiver, upon a determination that Prudential Financial is in default or in danger of default~~ and ~~presents~~other arestrictions ~~systemic risk to U.S. financial stability~~on, ~~and~~proprietary ~~Prudential~~trading ~~Financial U.S. insurance subsidiaries would be subject to rehabilitation~~ and ~~liquidation~~sponsorship ~~proceedings under state insurance law. We cannot predict how creditors~~ of, ~~Prudential Financial or its insurance~~ and ~~non-insurance~~investment ~~subsidiaries~~in, ~~including the holders of Prudential Financial debt~~hedge, ~~will~~private ~~evaluate~~equity ~~this~~and ~~potential~~other orcovered ~~whether it will impact our financing or hedging costs~~funds.

~~Foreign~~• ~~governmental~~The ~~actions~~Council could ~~subject~~recommend usnew toor ~~substantial~~heightened ~~additional~~standards ~~regulation~~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.

In• ~~addition~~Dodd-Frank tocreated ~~the~~a ~~adoption~~new framework for regulation of ~~Dodd~~the over-~~Frank~~the-counter inderivatives ~~the~~markets ~~United~~which ~~States~~could impact various activities of Prudential Global Funding LLC, ~~the~~Prudential Financial ~~Stability~~and ~~Board~~its insurance subsidiaries, which use derivatives for various purposes (~~“FSB”)~~including hedging interest rate, ~~has~~foreign ~~issued~~currency aand ~~series~~equity market exposures). While many of ~~proposals~~ ~~intended~~the regulations required to ~~produce~~be ~~significant~~promulgated ~~changes~~under inDodd-Frank ~~how~~with ~~financial~~respect ~~companies~~to derivatives markets have been adopted by the applicable regulatory agencies, ~~particularly~~the regulations that ~~are~~remain ~~members~~to be adopted or that have not been fully implemented could substantially increase the cost of ~~large~~hedging and ~~complex~~related ~~financial~~operations, ~~groups~~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, ~~should~~the Company continues to monitor increased capital requirements for derivatives transactions that may be ~~regulated.~~imposed on banks that are our counterparties.

On• ~~July 18,~~Title ~~2013,~~II ~~the~~of ~~FSB~~Dodd-Frank ~~identified~~provides ~~Prudential~~that ~~Financial as~~ a ~~global~~financial ~~systemically~~company ~~important~~such ~~insurer~~as ~~(“G-SII”).~~Prudential ~~The~~Financial ~~framework policy~~may ~~measures~~be ~~for~~subject ~~GSIIs~~to ~~published~~a byspecial ~~the~~orderly ~~International~~liquidation ~~Association~~process ofoutside ~~Insurance Supervisors (~~the ~~“IAIS”)~~federal ~~include~~bankruptcy ~~enhanced group-wide supervision~~code, ~~enhanced~~administered ~~capital~~by ~~standards,~~the ~~(including~~FDIC ~~basic~~as ~~capital~~receiver, ~~requirements~~upon ~~(“BCR”)~~a ~~and higher~~determination ~~loss~~that ~~absorption~~Prudential ~~capital~~Financial ~~standards),~~is ~~enhanced~~in ~~liquidity~~default ~~planning~~or ~~and~~in ~~management,~~danger ~~and development~~ of adefault ~~risk reduction plan~~ and ~~recovery~~presents ~~and~~a ~~resolution~~systemic ~~plans.~~risk Into ~~October 2014, the IAIS concluded the development of its initial BCR framework~~U. ~~Depending~~S. onfinancial ~~the directions of domestic group wide supervisors~~stability, ~~G-SIIs~~and ~~such as~~ Prudential Financial ~~will be required to report their BCR results beginning in 2015 on a confidential basis~~U.S. ~~The~~insurance ~~BCR~~subsidiaries ~~will~~would ~~continue to~~ be ~~revised~~subject ~~and~~to ~~refined~~rehabilitation ~~by the IAIS once the confidential reporting period begins,~~ and aliquidation ~~final~~proceedings ~~capital~~under ~~framework~~state ~~for~~insurance ~~G-SIIs is anticipated by 2019~~law. ~~Policy~~We ~~measures~~cannot ~~applicable~~predict tohow ~~G-SIIs~~creditors ~~would~~of ~~need~~Prudential toFinancial ~~be implemented by legislation~~ or ~~regulation~~its ininsurance ~~each~~and ~~applicable~~non-insurance ~~jurisdiction.~~subsidiaries, Weincluding ~~cannot predict~~ the ~~outcome~~holders of Prudential Financial’s ~~identification~~debt, aswill aevaluate ~~G-SII~~this onpotential ~~the~~or ~~regulation~~whether ofit will impact our ~~businesses.~~financing or hedging costs.

AtChanges ~~the~~in ~~direction of~~ the ~~FSB,~~ ~~the~~legislation ~~IAIS~~and isregulation ~~developing a model framework (“ComFrame”) for the supervision~~ of ~~internationally~~retirement ~~active~~products ~~insurance~~and ~~groups (“IAIGs”) that contemplates “group wide supervision” across national boundaries~~services, including ~~uniform~~ ~~standards~~proposed ~~for~~regulations ~~insurer~~released ~~corporate~~by ~~governance~~the ~~and~~DOL ~~enterprise~~in ~~risk management~~2015, acould ~~framework~~adversely ~~for~~affect ~~group~~our ~~capital adequacy assessment that accounts for group-wide risks~~business, ~~and~~results ~~the establishment~~ of ~~ongoing supervisory colleges. Prudential Financial qualifies as an IAIG. In October 2013~~operations, ~~the~~cash ~~IAIS~~flows ~~announced that it expects to develop a risk-based global insurance capital standard applicable to IAIGs with implementation scheduled to begin in 2019,~~ and infinancial ~~December 2014, it published a proposed standard for public comment~~condition. ~~At this time, we cannot predict what additional capital requirements, compliance costs or other burdens these requirements would impose on us, if adopted.~~

~~Changes~~In April 2015, the DOL released a proposed regulation, accompanied by new class exemptions and proposed amendments to long-standing exemptions from the prohibited transaction provisions under ERISA, and it is expected that the DOL will seek to promulgate final rules in U2016.S. ~~federal~~If enacted, ~~income~~the ~~tax~~rules ~~law~~will orredefine inwho would be considered a “fiduciary” for purposes of transactions with plans, plan participants and IRAs. We cannot predict the ~~income~~exact ~~tax~~nature ~~laws~~and scope of ~~other~~any ~~jurisdictions~~new infinal rules or their impact on our business; however, the ~~U.S.~~new rules may effectively impose limits on interactions with existing and prospective customers in ~~which~~our Individual Life (including Prudential Advisors), Individual Annuities, Retirement and Group Insurance businesses. In addition, we ~~operate~~may ~~could~~experience ~~make~~increased ~~some~~costs of if we need to adapt our technology and operational infrastructure to meet disclosure and compliance requirements under the ~~Company’s~~proposed ~~products~~rules. ~~less~~Our ~~attractive~~compliance with the proposed rules could lead to ~~consumers~~a loss of customers and ~~also~~revenues, ~~increase~~and otherwise adversely affect our ~~tax~~business, ~~costs~~results of 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.

~~There~~• isPrudential ~~uncertainty~~Advisors: ~~regarding~~We ~~U.S.~~expect ~~taxes both~~compliance with the “best interest contract exemption” will be required for ~~individuals~~IRA and ~~corporations.~~small ~~Discussions~~plan inretirement ~~Washington~~accounts ~~continue~~for ~~concerning~~a ~~the~~wide ~~need~~range toof ~~reform~~products, ~~the~~representing ~~tax~~a ~~code,~~significant ~~primarily~~part byof ~~lowering~~Prudential ~~tax~~Advisors’ ~~rates~~total ~~and~~business. ~~broadening~~This ~~the~~would ~~base~~give bycustomers ~~reducing~~a orprivate ~~eliminating~~right ~~certain~~of ~~tax~~action ~~expenditures.~~for ~~Reducing~~breach ~~or eliminating~~of ~~certain~~contract ~~tax~~if ~~expenditures~~an ~~could~~advisor ~~make~~provides advice that is not in the ~~Company~~customer’s ~~products~~best ~~less~~interest. ~~attractive~~We toexpect ~~customers.~~this Itwould isresult ~~unclear~~in ~~whether~~additional orcosts, ~~when~~oversight ~~Congress~~and ~~may~~litigation ~~take~~risks, upas ~~overall~~well ~~tax~~as ~~reform~~changes to compensation and ~~what~~benefit ~~would~~structures beand ~~the~~may ~~impact~~require ofus ~~reform~~to onreview ~~the~~product ~~Company~~offerings ~~and~~to ~~its~~ensure ~~products~~a sufficient variety of non-proprietary options.

8• Annuities: Certain distributors may restrict the sale of annuities, and may remove themselves as broker of record, transitioning servicing and compliance back to Prudential. In addition, we may need to alter our product design to emphasize simplicity, transparency and reduced fees. We may also need to monitor wholesaling and other sales support activities so as not to be considered fiduciary advice, which would subject those activities to greater liability.

~~Table~~• Retirement: Asset allocation tools included in our product offerings, when mapped to specific investments, may fall within the definition of ~~Contents~~acting as a fiduciary and could need to be altered or discontinued in order to minimize potential liability. IRA offerings and asset retention/consolidation activities may need to comply with the best interest contract exemption, as described above. In addition, changes to the relationship with sponsors and intermediaries for small business (<100 lives) plans will be required to avoid assuming a fiduciary role and the associated potential liability.

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

~~Congress~~Table from time to time considers legislation that could make the Company’s products less attractive to consumers. Current U.S. federal income tax laws generally permit certain holders to defer taxation on the build-up of value of annuities and life insurance products 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. 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. Contents

~~Congress,~~Foreign asgovernmental ~~well~~actions ~~as state and local governments, also considers from time to time legislation that~~ could ~~increase~~subject ~~the~~us ~~amount of corporate taxes we pay, thereby reducing earnings. For example, changes in the law relating~~ to ~~tax~~substantial ~~reserving~~additional ~~methodologies for term life or universal life insurance policies with secondary guarantees or other products could result in higher current taxes~~regulation.

~~The~~In ~~products~~addition ~~the~~to ~~Company sells have different tax characteristics, in some cases generating tax deductions for~~ the ~~Company.~~adoption ~~The level~~ of ~~profitability~~ ofDodd-Frank ~~certain~~in of the ~~Company’s~~United ~~products~~States, ~~is significantly dependent on these characteristics and~~ the ~~Company’s~~Financial ~~ability~~Stability toBoard ~~continue to generate taxable income~~(“FSB”), ~~which~~has isissued ~~taken into consideration when pricing products and is~~ a ~~component~~ series of ~~the~~proposals ~~Company’s~~intended ~~capital~~to ~~management~~produce ~~strategies.~~significant ~~Accordingly,~~ changes in ~~tax~~how ~~law,~~financial ~~the Company’s ability to generate taxable income~~companies, orparticularly ~~other~~those ~~factors~~that ~~impacting~~are ~~the~~members ~~availability or value~~ of ~~the~~large ~~tax~~and ~~characteristics~~complex ~~generated~~financial ~~by the Company’s products~~groups, ~~could~~should ~~impact product pricing and returns or require the Company to reduce its sales of these products or implement other actions that could~~ be ~~disruptive to our businesses~~regulated. ~~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.~~

~~Interruption~~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 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 ~~telecommunication~~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, ~~information~~enterprise ~~technology~~risk management and other ~~operational~~control ~~systems~~functions, orgroup-wide asupervision ~~failure~~and group capital adequacy. ComFrame is also scheduled to ~~maintain~~be adopted by the ~~security, confidentiality~~IAIS in 2019. Policy measures applicable to G-SIIs would need to be implemented by legislation or ~~privacy~~regulation ofin ~~sensitive~~each ~~data~~applicable ~~residing~~jurisdiction. onWe ~~such~~cannot ~~systems~~predict the impact of BCR, ~~could~~HLA, ~~harm~~or ComFrame on our business. or the outcome of Prudential Financial’s identification as a G-SII on the regulation of the Company.

WeChanges ~~depend~~in ~~heavily~~accounting onrequirements ~~our telecommunication,~~could ~~information~~negatively ~~technology~~impact ~~and other operational systems and on the integrity and timeliness of data we use to run~~ our ~~businesses~~reported ~~and~~results ~~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, we face the risk of operational and technology failures by others, including clearing agents, exchanges and other financial intermediaries and of vendors and parties to which we outsource the provision of services or business operations. ~~If these parties do not perform as anticipated, we may experience operational difficulties, increased costs~~ and ~~other adverse effects on~~ our ~~business.~~reported ~~These~~financial risks are heightened by our offering of increasingly complex products, such as those that feature automatic asset transfer or re-allocation strategies, and by our employment of complex investment, trading and hedging programsposition.

~~Despite~~Accounting ~~our~~standards ~~implementation~~are ofcontinuously aevolving ~~variety of security measures, our information technology~~ and ~~other systems could be~~ subject to ~~physical~~change. ~~or electronic~~For ~~break-ins~~example, ~~unauthorized~~the ~~tampering~~Financial orAccounting ~~other~~Standards ~~security~~Board ~~breaches,~~("FASB") ~~resulting~~has inan aongoing ~~failure~~project to ~~maintain~~revise ~~the~~accounting ~~security,~~standards ~~confidentiality~~for orinsurance ~~privacy~~contracts. ofWhile ~~sensitive~~the ~~data,~~final ~~including~~resolution ~~personal~~of ~~information~~changes ~~relating~~ to ~~customers~~U.S. orGAAP inpursuant ~~the~~to ~~misappropriation of~~this ~~our~~project ~~intellectual~~is ~~property~~unclear, orchanges ~~proprietary~~to ~~information.~~the ~~Many~~manner ~~financial~~in ~~services~~which ~~institutions~~we ~~and~~account ~~companies~~for ~~engaged~~insurance inproducts, ~~data~~or ~~processing~~other ~~have~~changes ~~reported~~in ~~breaches~~accounting instandards, ~~the~~could ~~security~~have ofa ~~their~~material ~~websites~~effect oron ~~other~~our ~~systems,~~reported ~~some~~results of ~~which~~operations ~~have involved sophisticated~~ and ~~targeted~~financial ~~attacks~~condition. ~~intended~~Further, tochanges ~~obtain~~in ~~unauthorized~~accounting ~~access~~standards tomay ~~confidential~~impose ~~information,~~special ~~destroy~~demands ~~data,~~on ~~disrupt~~issuers orin ~~degrade~~areas ~~service,~~such ~~sabotage~~as ~~systems~~corporate ~~or cause other damage~~governance, ~~often~~internal ~~through~~controls ~~the~~and ~~introduction~~disclosure, ofand ~~computer~~may ~~viruses~~result orin ~~malware, cyber~~substantial ~~attacks~~conversion ~~and~~costs ~~other~~to ~~means~~implement.

~~Despite~~Changes ~~our~~in ~~efforts~~U.S. tofederal ~~ensure~~income ~~the~~tax ~~integrity~~law ~~of our systems, it is possible that we may not be able to anticipate~~ or toin ~~implement~~the ~~effective~~income ~~preventive~~tax ~~measures~~laws ~~against all security breaches~~ of ~~these~~other ~~types,~~jurisdictions ~~especially~~in ~~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 persons who are involved with organized crime or associated with external service providers or who may be linked to terrorist organizations or hostile foreign governmentsU.S. ~~Those~~in ~~parties~~which ~~may~~we ~~also~~operate ~~attempt~~could tomake ~~fraudulently~~some ~~induce employees, customers or other users~~ of ~~Prudential~~the ~~Financial~~Company’s ~~systems~~products toless ~~disclose~~attractive ~~sensitive information in order~~ to ~~gain~~consumers ~~access~~and toalso ~~our~~increase ~~data or that of our customers or clients. In addition, while~~ the Company's ~~has~~tax certain standards for all vendors 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 contractual arrangementscosts.

~~Interruption~~There inis ~~telecommunication,~~uncertainty ~~information~~regarding ~~technology~~U.S. ~~and~~taxes ~~other~~both ~~operational~~for ~~systems,~~individuals orand ~~a failure~~corporations. toDiscussions ~~maintain~~in Washington continue concerning the ~~security,~~need ~~confidentiality~~to orreform ~~privacy~~the oftax ~~sensitive~~code, ~~data~~primarily ~~residing~~by onlowering ~~such~~tax ~~systems,~~rates ~~whether~~and ~~due~~broadening tothe ~~actions~~base by usreducing or ~~others,~~eliminating ~~could~~certain ~~delay~~tax orexpenditures. ~~disrupt~~Reducing ~~our~~or ~~ability~~eliminating tocertain dotax ~~business~~expenditures ~~and~~could ~~service~~make ~~our~~the ~~customers,~~Company’s ~~harm~~products ~~our~~less ~~reputation,~~attractive ~~result in~~to acustomers. ~~violation~~It ofis ~~applicable~~unclear ~~privacy~~whether ~~and~~or ~~other~~when ~~laws,~~Congress ~~subject~~may ustake toup ~~substantial~~overall ~~regulatory~~tax ~~sanctions~~reform and ~~other~~what ~~claims,~~would ~~lead~~be tothe aimpact ~~loss~~ of ~~customers~~reform ~~and~~on ~~revenues,~~the orCompany ~~financial loss to our customers~~ and ~~otherwise~~its ~~adversely affect our business~~products.

9However 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.

~~Table~~Congress from time to time considers legislation that could make the Company’s products less attractive to consumers. Current U.S. federal income tax laws generally permit certain holders to defer taxation on the build-up of ~~Contents~~value of annuities and life insurance products 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. 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.

~~The~~Congress, ~~occurrence~~as ofwell ~~natural~~as orstate ~~man-made~~and ~~disasters~~local ~~could~~governments, ~~adversely~~also ~~affect~~considers ~~our~~from ~~operations,~~time ~~results~~ to time legislation that could increase the amount of ~~operations~~corporate ~~and~~taxes ~~financial~~we ~~condition~~pay, thereby reducing earnings. For example, changes in the law relating to tax reserving methodologies for term life or universal life insurance policies with secondary guarantees or other products could result in higher current taxes.

The ~~occurrence~~products ofthe ~~natural~~Company ~~disasters,~~sells ~~including~~have ~~hurricanes,~~different ~~floods,~~tax ~~earthquakes~~characteristics, ~~tsunamis, tornadoes,~~in ~~fires,~~some ~~explosions,~~cases ~~pandemic~~generating ~~disease~~tax deductions for the Company. The level of profitability of certain of the Company’s products is significantly dependent on these characteristics and ~~man-made~~the ~~disasters~~Company’s ability to continue to generate taxable income, ~~including~~which ~~acts~~is oftaken ~~terrorism~~into consideration when pricing products and ~~military~~is ~~actions~~a component of the Company’s capital management strategies. Accordingly, ~~could~~changes ~~adversely~~in ~~affect~~tax ~~our~~law, ~~operations~~the Company’s ability to generate taxable income, ~~results~~or ofother ~~operations~~factors impacting the availability or ~~financial~~value ~~condition~~of the tax characteristics generated by the Company’s products, ~~including~~could inimpact product pricing and returns or require the ~~following~~Company ~~respects:~~to reduce its sales of these products or implement other actions that could be

• Catastrophic loss of life due to natural or man-made disasters could cause us to pay benefits at higher levels and/or materially earlier than anticipated and could lead to unexpected changes in persistency rates.8

•Table ~~A man-made or natural 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.~~Contents

•disruptive Ato ~~terrorist~~our ~~attack~~businesses. ~~affecting~~In ~~financial~~addition, ~~institutions in~~ the ~~United~~adoption ~~States~~of or“principles ~~elsewhere~~based” ~~could~~approaches ~~negatively~~for ~~impact~~statutory ~~the~~reserves ~~financial~~may ~~services~~lead ~~industry~~to insignificant ~~general~~changes ~~and~~to ~~our~~the ~~business~~way ~~operations,~~tax ~~investment~~reserves ~~portfolio~~are determined and ~~profitability~~thus inreduce ~~particular~~future tax deductions.

•Interruption ~~Pandemic~~in ~~disease~~telecommunication, ~~could~~information ~~have~~technology ~~a severe adverse effect on the Company’s business. The potential impact of such a pandemic on the Company’s results of operations~~ and ~~financial~~other ~~position~~operational ~~is highly speculative~~systems, ~~and~~or ~~would~~a ~~depend~~failure onto ~~numerous~~maintain ~~factors, including:~~ the ~~effectiveness~~security, ofconfidentiality ~~vaccines~~or ~~and~~privacy ~~the rate~~ of ~~contagion;~~sensitive ~~the~~data ~~regions~~residing of the world most affected; the effectiveness of treatment for the infected population; the rates of mortality and morbidity among various segments of the insured population; the collectability of reinsurance; the possible macroeconomic effects of a pandemic on ~~the~~such ~~Company’s asset portfolio; the effect on lapses and surrenders of existing policies~~systems, ascould ~~well~~harm asour ~~sales of new policies; and many other variables~~business.

~~The~~We ~~above~~depend ~~risks are~~heavily ~~more~~on ~~pronounced~~our intelecommunication, ~~respect~~information technology and other operational systems and on the integrity and timeliness of ~~geographic~~data ~~areas,~~we ~~including~~use ~~major~~to ~~metropolitan~~run ~~centers,~~our ~~where~~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, we ~~have~~face ~~concentrations~~the risk of ~~customers~~operational and technology failures by others, including ~~under~~clearing ~~group~~agents, exchanges and ~~individual~~other ~~life~~financial ~~insurance,~~intermediaries ~~concentrations~~and of ~~employees~~vendors and parties to which we outsource the provision of services or ~~significant~~business operations. If these parties do not perform as anticipated, ~~and~~we ~~in respect~~may ofexperience ~~countries~~operational difficulties, increased costs and ~~regions~~other inadverse ~~which~~effects weon ~~operate~~our ~~subject~~business. toThese arisks ~~greater~~are ~~potential~~heightened ~~threat~~by our offering of ~~military~~increasingly ~~action~~complex products, such as those that feature automatic asset transfer or ~~conflict.~~re-allocation strategies, and by our employment of complex investment, trading and hedging programs.

~~There~~Despite ~~can~~our ~~be no~~implementation ~~assurance~~of ~~that~~a ~~our~~variety ~~business~~of ~~continuation~~security ~~plans~~measures, our information technology and ~~insurance~~other ~~coverages~~systems ~~would~~could be ~~effective~~subject to physical or electronic break-ins, unauthorized tampering or other security breaches, resulting in ~~mitigating~~a ~~any~~failure ~~negative~~to ~~effects~~maintain onthe security, confidentiality or privacy of sensitive data, including personal information relating to customers or in the misappropriation of our ~~operations~~intellectual property or ~~profitability~~proprietary information. Many financial services institutions and companies engaged in data processing have reported breaches in the ~~event~~security of atheir ~~terrorist~~websites ~~attack~~or other systems, some of which have involved sophisticated and targeted attacks intended to obtain unauthorized access to confidential information, destroy data, disrupt or degrade service, sabotage systems or cause other ~~disaster.~~damage, often through the introduction of computer viruses or malware, cyber attacks and other means.

~~Finally~~Despite our efforts to ensure the integrity of our systems, ~~climate~~it ~~change~~is possible that we may ~~increase~~not ~~the~~be ~~frequency~~able ~~and~~to ~~severity~~anticipate ofor ~~weather~~to ~~related~~implement ~~disasters.~~effective Inpreventive ~~addition~~measures against all security breaches of these types, ~~climate~~especially because the techniques used change ~~regulation~~frequently ~~may affect~~or ~~the~~are ~~prospects~~not ofrecognized ~~companies~~until launched, and ~~other~~because ~~entities~~cyber ~~whose~~attacks ~~securities~~can weoriginate ~~hold~~from ~~and~~a ~~other~~wide ~~counterparties~~variety of sources, including ~~reinsurers~~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 governments. Those parties may also attempt to fraudulently induce employees, ~~and~~customers ~~affect~~or ~~the~~other ~~value~~users of ~~investments,~~Prudential ~~including~~Financial’s ~~real~~systems ~~estate~~to ~~investments~~disclose wesensitive ~~hold~~information in order to gain access to our data or ~~managed~~that ~~for~~of ~~others~~our customers or clients. WeIn ~~cannot~~addition, ~~predict~~while the ~~long~~ ~~term~~Company ~~impacts~~has oncertain standards for all vendors that provide us ~~from~~services, ~~climate~~our ~~change~~vendors, orand ~~related~~in ~~regulation.~~turn, their own service providers, may become subject to a security breach, including as a result of their failure to perform in accordance with contractual arrangements.

~~Risks~~Security ~~associated~~breaches ~~with~~or ~~real~~other ~~estate~~technological ~~investing~~failures may also result in regulatory inquiries, regulatory proceedings, regulatory and litigation costs, and reputational damage. We may incur reimbursement and other expenses, including the costs of litigation and litigation settlements and additional compliance costs. We may also incur considerable expenses in enhancing and upgrading computer systems and systems security following such a failure.

~~Liquidity~~Interruption in telecommunication, information technology and other operational systems, or a failure to maintain the security, confidentiality or privacy of ~~Investments~~sensitive data residing on such systems, whether due to actions by us or others, could delay or disrupt our ability to do business and service our customers, harm our reputation, result in a violation of applicable privacy and other laws, subject us to substantial regulatory sanctions and other claims, lead to a loss of customers and revenues, or financial loss to our customers and otherwise adversely affect our business.

~~Because~~The ~~the~~occurrence ~~Real~~of ~~Property~~natural ~~Account~~or ~~will, through the Partnership, invest primarily in real estate, its assets will not be as liquid as the investments generally~~ man-made bydisasters ~~separate~~could ~~accounts~~adversely ofaffect ~~life~~our ~~insurance companies funding variable life insurance and variable annuity contracts. The Partnership will~~operations, ~~however,~~results ~~hold approximately 10%~~ of ~~its~~operations ~~assets in cash~~ and ~~invested~~financial ~~in liquid securities~~condition. The primary purposes for such investments are to meet the expenses involved in the operation of the Partnership and to allow it to have sufficient liquid assets to meet any requests for withdrawals from the Real Property Account. Such withdrawals would be made in order to meet requested or required payments under the Contracts.

WeThe ~~have~~occurrence ~~taken~~of ~~steps~~natural ~~to ensure~~disasters, ~~that~~including ~~the~~hurricanes, ~~Partnership~~floods, ~~will~~earthquakes, betsunamis, ~~liquid~~tornadoes, ~~enough~~fires, toexplosions, ~~meet~~pandemic ~~all~~disease ~~anticipated~~and ~~withdrawals~~man-made bydisasters, ~~the~~including ~~Partners~~acts toof ~~meet~~terrorism ~~the~~and ~~separate~~military ~~accounts’~~actions, ~~liquidity~~could ~~requirements.~~adversely Itaffect isour ~~possible~~operations, ~~that~~results ~~the Partnership may need to dispose~~ of aoperations ~~real property~~ or ~~mortgage loan~~financial ~~investment~~condition, ~~promptly~~including in ~~order~~the tofollowing ~~meet such withdrawal requests.~~ respects:

~~General~~• ~~Risks~~Catastrophic loss of ~~Real~~life ~~Property~~due ~~Investments~~to natural or man-made disasters could cause us to pay benefits at higher levels and/or materially earlier than anticipated and could lead to unexpected changes in persistency rates.

By• ~~participating~~A man-made or natural disaster, such as an earthquake in ~~the~~Japan, ~~Real~~could ~~Property~~result ~~Account~~in ~~and~~disruptions ~~thereby~~in our operations, losses in ~~the~~our investment ~~performance~~portfolio ofor the ~~Partnership,~~ ~~you~~failure ~~will~~of beour ~~subject~~counterparties to ~~many~~perform, ~~of the~~or ~~risks~~cause ofsignificant ~~real~~volatility ~~property~~in ~~investments. These~~global ~~include:~~financial markets.

1.• ~~Risks~~A ofterrorist ~~Ownership~~attack ofaffecting ~~Real Properties. The Partnership~~financial ~~will~~institutions bein ~~subject to~~ the ~~risks~~United ~~inherent~~States inor ~~the~~elsewhere ~~ownership~~could ofnegatively ~~real~~impact ~~property~~the ~~such~~financial asservices ~~fluctuations~~industry in ~~occupancy~~general ~~rates~~ and ~~operating~~our ~~expenses~~business ~~and~~operations, ~~variations~~investment inportfolio ~~rental~~and ~~schedules.~~profitability Itin ~~may be adversely affected by~~ particular.

10 9

Table of Contents

~~general~~• ~~and~~Pandemic ~~local~~disease ~~economic~~could ~~conditions,~~have ~~the~~a ~~supply~~severe ofadverse ~~and~~effect ~~demand~~on ~~for properties of~~ the ~~type~~Company’s inbusiness. ~~which~~The ~~the~~potential ~~Partnership~~impact ~~invests,~~of ~~zoning~~such ~~laws,~~a ~~and~~pandemic ~~real~~on ~~property~~the ~~tax~~Company’s ~~rates. Operation~~results of ~~property in~~operations ~~which~~and ~~the~~financial ~~Partnership~~position ~~invests~~is ~~will~~highly ~~primarily~~speculative, ~~involve~~and ~~rental~~would ofdepend ~~that~~on ~~property~~numerous tofactors, ~~tenants. The~~including: ~~financial~~the ~~failure~~effectiveness of avaccines ~~tenant~~and ~~resulting in~~ the ~~termination~~rate of ~~their~~contagion; ~~lease~~the ~~might~~regions ~~cause~~of ~~a reduction in~~ the ~~cash~~world ~~flow~~most toaffected; the ~~Partnership. If~~effectiveness ~~a lease~~of istreatment ~~terminated,~~for ~~there~~the isinfected nopopulation; ~~assurance~~the ~~that~~rates ~~the~~of ~~Partnership~~mortality ~~will~~and bemorbidity ~~able~~among tovarious ~~find~~segments aof ~~new~~the ~~tenant~~insured ~~for~~population; the ~~property~~collectability onof ~~terms~~reinsurance; asthe ~~favorable~~possible tomacroeconomic ~~the~~effects ~~Partnership~~of asa ~~those~~pandemic ~~from~~on the ~~prior~~Company’s ~~tenant. Investments~~asset inportfolio; ~~hotels~~the ~~are~~effect ~~subject~~on tolapses ~~additional~~and ~~risk from~~surrenders ~~the~~of ~~daily~~existing ~~turnover~~policies, ~~and~~as ~~fluctuating~~well ~~occupancy~~as ~~rates~~sales of ~~hotel~~new ~~rooms~~policies; and ~~the~~many ~~absence~~other ~~of long-term tenants~~variables.

The ~~Partnership’s properties~~above ~~will~~risks ~~also~~are bemore ~~subject~~pronounced toin ~~the~~respect ~~risk~~of geographic areas, including major metropolitan centers, where we have concentrations of ~~loss~~customers, ~~due~~including tounder ~~certain~~group ~~types~~and individual life insurance, concentrations of ~~property~~employees ~~damage~~or ~~(such~~significant asoperations, ~~from~~and ~~nuclear~~in ~~power~~respect ~~plant~~of ~~accidents~~countries and ~~wars)~~regions in which ~~are~~we ~~either~~operate ~~uninsurable~~subject orto ~~not~~a ~~economically~~greater ~~insurable.~~potential threat of military action or conflict.

2.There ~~Risks~~can ~~of Mortgage Loan Investments. The Partnership’s mortgage loan investments will~~ be ~~subject~~no ~~to the~~assurance ~~risk~~that ofour ~~default~~business bycontinuation ~~the~~plans ~~borrowers. In~~and ~~this~~insurance ~~event~~coverages ~~the Partnership~~ would ~~have~~be ~~the~~effective ~~added~~in ~~responsibility~~mitigating ofany ~~foreclosing~~negative oneffects ~~or pursuing other remedies~~ on ~~the~~our ~~underlying~~operations ~~properties~~or toprofitability ~~protect~~in the ~~value~~event of ~~its~~a ~~mortgage~~terrorist ~~loans. A~~attack ~~borrower’s ability~~or to meet its mortgage loan payments will be dependent upon the risks generally inherent to the ownership of real property. Mortgage loans made by the Partnership will generally not be personal obligations of the borrowers. The Partnership will only rely on the value of the underlying property for its security. Mechanics’, material men’s, government, and other ~~liens may have or obtain priority over the Partnership’s security interest in the property~~disaster.

~~In addition~~Finally, ~~the~~climate ~~Partnership’s~~change ~~mortgage~~may ~~loan~~increase ~~investments~~the ~~will~~frequency beand ~~subject~~severity toof ~~prepayment~~weather ~~risks~~related disasters. If In addition, climate change regulation may affect the ~~terms~~prospects of ~~the~~companies ~~mortgage loans~~and ~~permit~~other entities whose securities we hold and other counterparties, ~~mortgagors~~including ~~may~~reinsurers, ~~prepay~~and affect the ~~loans~~value of investments, ~~thus~~including ~~possibly~~real ~~changing~~estate ~~the~~investments ~~Partnership’s~~we ~~return~~hold or manage for others. We cannot predict the long term impacts on us from climate change or related regulation.

~~Junior~~Risks ~~mortgage~~associated ~~loans~~with ~~(including wraparound~~real ~~mortgage~~estate 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 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. investing

~~The~~Liquidity ~~risk~~ of lending on real estate increases as the proportion, which 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. Investments

~~Mortgage~~Because ~~loans~~the ~~made by~~Real ~~the~~Property ~~Partnership~~Account ~~may~~will, bethrough ~~subject~~the toPartnership, ~~state~~invest ~~usury~~primarily ~~laws. These~~in ~~laws~~real ~~impose~~estate, ~~limits~~its onassets ~~interest~~will ~~charges~~not ~~and~~be ~~possible~~as ~~penalties~~liquid ~~for~~as ~~violation~~the ofinvestments ~~those~~generally ~~limits,~~made ~~including~~by ~~restitution~~separate accounts of ~~excess~~life ~~interest,~~insurance ~~unenforceability~~companies offunding ~~debt,~~variable life insurance and ~~treble damages~~variable annuity contracts. The Partnership ~~does~~will, ~~not~~however, ~~intend~~hold toapproximately ~~make~~10% ~~mortgage~~of ~~loans~~the atPartnership's ~~usurious~~assets ~~rates~~in ofcash ~~interest.~~or ~~Uncertainties~~invested in ~~determining~~liquid ~~the~~instruments ~~legality of interest rates~~ and ~~other~~securities ~~borrowing~~although ~~charges~~the ~~under~~general ~~some~~partners ~~statutes~~reserve ~~could~~discretion ~~result~~to inincrease ~~inadvertent~~this ~~violations, in~~amount ~~which~~to ~~case~~meet ~~the~~partnership ~~Partnership~~liquidity ~~could incur the penalties mentioned above~~requirements.

3.We ~~Risks~~have ~~with Participations. The~~taken ~~Partnership~~steps ~~may seek~~ to ~~invest~~ensure inthat ~~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~~be ~~on the~~liquid ~~success~~enough into ~~the~~meet ~~leasing~~all ofanticipated ~~the~~withdrawals ~~underlying property, the management and operation of such property~~ by the ~~borrower~~General orPartners 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~~meet ~~increased revenues or to appreciate,~~ the ~~Partnership~~separate ~~will~~accounts’ ~~have foregone~~liquidity ~~a potentially greater fixed return without receiving the benefit of appreciation~~requirements. ~~State~~ ~~laws~~It ~~may limit Participations. In the event of the borrower’s bankruptcy, it~~ is possible that ~~as a result of~~ the Partnership~~’s interest~~ inmay ~~the~~need ~~gross~~to ~~revenues~~dispose orof ~~sale proceeds,~~ a ~~court~~real ~~could~~property ~~treat the Partnership as a partner~~ or ~~joint~~mortgage ~~venturer~~loan ~~with~~investment ~~the~~promptly ~~borrower,~~in ~~and~~order ~~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~~meet ~~being~~such ~~characterized~~withdrawal ~~as a partner or joint venturer with the borrower~~requests.

4.General Risks ~~with Sale-Leaseback Transactions. Leaseback transactions typically involve the acquisition~~ of ~~land~~Real ~~and~~Property 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. Investments

~~An affiliate~~By ofparticipating in the ~~Partnership~~Real ~~investigates~~Property ~~the~~Account ~~stability~~ and ~~creditworthiness~~thereby ~~of lessees~~ in ~~all~~the ~~commercial~~investment ~~properties~~performance ~~the~~of the Partnership ~~may acquire~~, ~~including~~you ~~leaseback~~will ~~transactions. However,~~be asubject ~~lessee~~to inmany aof ~~leaseback~~the ~~transaction~~risks ~~may~~of ~~have~~real ~~few,~~property ~~if any,~~investments. These include:

111. Risks of Ownership of Real Properties. The Partnership will be subject to the risks inherent in the ownership of real property such as fluctuations in occupancy rates and operating expenses and variations in rental schedules. It may be adversely affected by general and local economic conditions, the supply of and demand for properties of the type in which the Partnership invests, zoning laws, and real property tax rates. Operation of property in which the Partnership invests will primarily involve rental of that property to tenants. The financial failure of a tenant resulting in the termination of their lease might cause a reduction in the cash flow to the Partnership. If 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.

~~Table~~The Partnership’s properties will also be subject to the risk of ~~Contents~~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.

~~assets~~2. ~~The~~ ~~Partnership~~Risks ~~will therefore rely for its security on the value~~ of ~~the~~Mortgage ~~land~~Loan ~~and improvements~~Investments. ~~When~~The ~~the~~ Partnership’s ~~leaseback~~mortgage ~~interest~~loan isinvestments ~~subordinate~~will tobe ~~other~~subject ~~interests in~~to the ~~land~~risk orof ~~improvements,~~default ~~such~~by asthe aborrowers. In ~~first~~this ~~mortgage~~event ~~or other lien,~~ the Partnership’s ~~leaseback~~would ~~will~~have bethe ~~subject~~added toresponsibility ~~greater~~of ~~risk. A~~foreclosing ~~default~~on ~~by a lessee~~ or pursuing other ~~premature~~remedies ~~termination~~on of the ~~leaseback~~underlying ~~may~~properties ~~result~~to inprotect the ~~Partnership~~value ~~being unable~~of ~~to recover~~ its ~~investment~~mortgage ~~unless~~loans. A ~~the~~borrower’s ~~property~~ability isto ~~sold~~meet orits ~~leased~~mortgage onloan ~~favorable~~payments ~~terms. The~~will ~~ability~~be ofdependent upon the ~~lessee~~risks togenerally ~~meet~~inherent ~~its~~to ~~obligations under~~ the ~~leaseback,~~ownership ~~and the value~~ of areal property,. ~~may~~Mortgage beloans ~~affected~~made by athe ~~number~~Partnership ofwill ~~factors~~generally ~~inherent~~not ~~in the~~be ~~ownership~~personal obligations of ~~real~~the ~~property~~borrowers. The ~~which~~Partnership ~~are~~will ~~described~~only ~~above.~~rely ~~Furthermore,~~on the ~~long-term~~value ~~nature~~ of athe ~~leaseback~~underlying ~~may,~~property infor ~~the~~its ~~future~~security. Mechanic's, ~~result~~material inmen’s, ~~the~~government, ~~Partnership~~and ~~receiving~~other ~~lower~~liens ~~average~~may ~~annual~~have ~~rentals.~~or ~~However,~~obtain ~~this~~priority ~~risk~~over ~~may be lessened if~~ the Partnership ~~obtains~~’s ~~Participations~~security interest in ~~connection~~the ~~with its Leasebacks~~property.

~~Item 1B. Unresolved Staff Comments~~10

~~None.~~Table of Contents

~~Item~~In 2addition, the Partnership’s mortgage loan investments will be subject to prepayment risks. If ~~Properties~~the terms of the mortgage loans permit, mortgagors may prepay the loans, thus possibly changing the Partnership’s return.

~~Not~~Junior ~~Applicable~~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 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.

~~Item~~The 3risk 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 ~~Legal~~Partnership ~~Proceedings~~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.

~~None~~Mortgage loans made by the Partnership may be subject to state usury laws. These 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.

~~Item~~3. 4Risks with Participations. The ~~Mine~~Partnership ~~Safety~~may ~~Disclosures~~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.

~~Not~~4. ~~Applicable~~Risks with Sale-Leaseback Transactions. Leaseback transactions 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.

12An 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.

~~Table~~Item 1B. ofUnresolved ~~Contents~~Staff Comments

~~PART II~~ None.

Item 5 2. ~~Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities~~Properties

~~Owners~~Not ~~of the Contracts may participate by allocating all or part of the net premiums or purchase payments to the Real Property Account~~Applicable. Contract values 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.

~~As of December 31, 2014, approximately 23,990 contract owners of record held investments in the Real Property Account.~~ 11

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

~~The~~Item 3. ~~Prudential~~Legal ~~Variable Contract Real Property Partnership Results of Operations and Financial Position are summarized as follows:~~ Proceedings

~~RESULTS OF OPERATIONS:~~None.

	Item 6. Selected Financial Data
	Year Ended December 31,
	2014		2013		2012		2011		2010
Total Investment Income	$	25,546,941	$	28,525,763	$	26,066,202	$	24,372,936	$	24,923,302
Net Investment Income	$	7,474,906	$	9,574,870	$	712,225	$	8,559,353	$	6,371,136
Net Recognized and Unrealized Gain (Loss) on Real Estate Investments		6,735,778		9,056,521		3,330,392		14,773,499		8,033,579
Net Increase (Loss) in Net Assets Resulting From Operations	$	14,210,654	$	18,661,691	$	12,592,617	$	73,332,652	$	16,404,715
FINANCIAL POSITION:
	December 31,
	2014		2013		2012		2011		2010
Total Assets	$	270,945,663	$	256,375,190	$	246,011,495	$	212,980,362	$	202,789,3539
Investment Level Debt	$	70,006,895	$	59,223,759	$	56,775,225	$	33,464,270	$	30,563,616

Item 4. Mine Safety Disclosures

13Not Applicable.

~~Table of Contents~~12

~~ITEM~~Table 7.of ~~MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS~~Contents

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

~~The~~Item 5. ~~following~~Market ~~discussion~~for ~~and~~Registrant’s ~~analysis~~Common ofEquity, ~~the~~Related ~~liquidity~~Stockholder ~~and~~Matters ~~capital resources~~ and ~~results~~Issuer ofPurchases ~~operations~~ of ~~the~~Equity 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. Securities

(Owners of the contracts may participate by allocating all or part of the net premiums or purchase payments to the Real Property Account. Contract values 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) ~~Liquidity~~discussion ~~and~~of ~~Capital~~market ~~Resources~~information is not relevant.

As of December 31, ~~2014~~2015, ~~the Partnership’s liquid assets, consisting of cash and cash equivalents, were~~ approximately ~~$32.3 million~~23, a275 ~~decrease~~contract ofowners ~~approximately $11.6 million from $43.9 million as~~ of ~~December 31,~~record ~~2013.~~held ~~The~~investments 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~~Real ofProperty ~~a grocery-anchored retail center located in North Fort Myers, Florida; (d) $4~~Account.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 items: (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 DecemberItem ~~31, 2014, approximately 11~~6.9% ofSelected ~~the~~Financial ~~Partnership’s total assets consisted of cash and cash equivalents.~~ Data

14The Partnership Results of Operations and Financial Position are summarized as follows:

~~Table~~RESULTS ofOF ~~Contents~~OPERATIONS:

(b) Results of Operations



	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

~~The following is a comparison of the Partnership’s results of operations for the years ended December 31, 2014 and 2013.~~ 13

~~Net~~Table ~~investment~~of ~~income overview~~ Contents

~~The Partnership’s net investment income attributable to the general partners’ controlling interest for the year ended December~~ITEM ~~31, 2014 was approximately $6~~7.8 ~~million, a decrease of approximately $2.3 million from the prior year period. The decrease in net investment income attributable to the general partners~~MANAGEMENT’S ~~controlling~~DISCUSSION ~~interest~~AND ~~was~~ANALYSIS ~~primarily~~OF ~~due~~FINANCIAL toCONDITION ~~a decrease~~AND ofRESULTS ~~$2.9~~OF ~~million~~OPERATIONS in the office sector investments’ and a 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.

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

The ~~Partnership~~following ~~recorded~~discussion aand ~~net~~analysis ~~recognized gain attributable to the general partners’ controlling interest~~ of ~~$0.5 million for~~ the ~~year ended~~liquidity ~~December 31,~~and ~~2014,~~capital ~~compared~~resources toand ~~$0.1~~results ~~million~~ of ~~recognized~~operations ~~gain for the prior year period. The net recognized gain attributable to the general partners’ controlling interest was due to the sale~~ of the ~~hotel property in Lake Oswego, Oregon. The~~ Partnership ~~recorded~~should abe ~~net~~read ~~unrealized~~in ~~gain~~conjunction ~~attributable~~with to the ~~general~~audited ~~partners’~~financial ~~controlling~~statements ~~interest~~ of ~~approximately $5.5 million for~~ the ~~year~~Real ~~ended~~Property ~~December 31,~~Account ~~2014.~~and ~~This is compared with a net unrealized gain attributable to~~ the ~~general~~audited ~~partners’~~consolidated ~~controlling~~financial ~~interest~~statements of ~~approximately $7.4 million for~~ the ~~prior~~Partnership ~~year~~and ~~period. The unrealized gains attributable to~~ the ~~general~~related ~~partners’~~Notes ~~controlling~~included ~~interest for the year ended December 31, 2014 were primarily due to valuation increases~~ in ~~the~~this ~~retail, apartment, and office sector investments~~filing.

15(a) Liquidity and Capital Resources

~~Table~~As of ~~Contents~~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 ~~following~~of ~~table~~liquidity ~~presents~~included anet ~~comparison~~cash offlow ~~the~~from ~~Partnership’s~~property ~~sources~~operations ofand ~~net~~interest ~~investment income~~from ~~attributable~~cash toequivalents. The ~~the~~Partnership ~~general~~uses ~~partners’~~cash ~~controlling~~for ~~interest~~its ~~and~~real ~~net~~estate ~~recognized~~investment activities and ~~unrealized~~for ~~gains~~distributions orto ~~(losses)~~its ~~attributable~~General toPartners. As ~~the~~of ~~general~~December ~~partners’~~31, ~~controlling~~2015, ~~interest~~approximately ~~for~~5.1% of the ~~years~~Partnership’s ~~ended~~total ~~December 31,~~assets ~~2014~~consisted of cash and ~~2013~~cash equivalents.

	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

(b) Results of Operations

16The following is a comparison of the Partnership’s results of operations for the years ended December 31, 2015 and 2014.

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

~~OFFICE~~The ~~PROPERTIES~~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.

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

Valuation overview

(The Partnership recorded a net recognized gain attributable to the General Partners’ controlling interest of $0.1) ~~The~~million ~~Brentwood~~for the year ended December 31, ~~Tennessee~~2015, ~~properties~~compared ~~were~~to ~~sold~~$0.5 onmillion ~~December~~of 12recognized 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, ~~2013~~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, ~~which~~2015. This is ~~reflected~~compared aswith a ~~recognized~~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.

~~Net investment income~~ 14

~~Net~~Table 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. Contents

~~Recognized~~The following table presents a comparison of the Partnership’s sources of net investment income attributable to the General Partners’ controlling interest and ~~Unrealized~~net ~~gain/~~recognized and unrealized gains or (~~loss~~losses) attributable to the General Partners’ controlling interest for the years ended December 31, 2015 and 2014.

The 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.



	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

17 15

Table of Contents

~~APARTMENT~~OFFICE PROPERTIES

Year Ended December 31,	Net InvestmentIncome/(Loss)~~2014~~2015			Net InvestmentIncome/(Loss)~~2013~~2014			Recognized/UnrealizedGain/(Loss)~~2014~~2015			~~Recognized/~~UnrealizedGain/(Loss)~~2013~~2014			~~Occupancy2014~~Occupancy2015			Occupancy2014	~~Occupancy2013~~
Property
Raleigh, NC (1)	$	(64,926	)	$	(4,361	)	$	—		$	373,354			N/A				N/A
Lisle, IL	$	(141,037	)	$	323,305		$	(1,179,179	)	$	(852,520	)	55	%		38	%
Austin, TX		1,470,249			1,494,285			41,446			742,449			96	%			97	%
Brentwood, TN #1 (1)	—			15,096			—			—			N/A			N/A
Charlotte, NC		903,919			843,379			1,032,549			1,443,837			96	%			99	%
Beaverton, OR (2)	(245,409		)	546,941			125,879			1,975,987			N/A			100	%
Seattle, WA #1		523,967			413,665			908,465			1,389,258			83	%			85	%
Brentwood, TN #2 (1)	—			17,022			—			—			N/A			N/A
Seattle, WA #2		629,693			457,614			832,760			1,987,710			91	%			95	%
	$	(386,446	)	$	902,364		$	(1,053,300	)	$	1,123,467
	$	3,462,902		$	3,204,582		$	2,815,220		$	5,936,608

(1) The ~~Raleigh~~Brentwood, ~~North~~Tennessee ~~Carolina~~properties ~~property~~were ~~was~~ sold on ~~February~~December 2512, 2013,. ~~which~~The ~~was~~net ~~reflected~~investment asincome ain ~~recognized~~2014 ~~gain~~represents post closing accrual write-offs.

~~Net~~(2) ~~investment~~The ~~income~~Beaverton, Oregon property was sold on June 8, 2015.

Net investment income attributable to the general partners’ controlling interest for the Partnership’s apartment properties was approximately $3.5 million for the year ended December 31, 2014, which represents an increase of approximately $0.3 million from the prior year period. This increase was primarily due to increased rents from unit renovations at the properties in Seattle, Washington and Charlotte, North Carolina. /(loss)

~~Recognized~~Net ~~and~~investment ~~Unrealized~~income ~~gain/(~~attributable to the General Partners’ controlling interest for the Partnership’s office properties was a loss) of approximately $0.4 million for the year ended December 31, 2015, which represents a decrease of approximately $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.

~~The~~Recognized 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~~Unrealized gain/(loss) 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.

18The office properties owned by the Partnership recorded a net recognized and unrealized loss attributable to the General Partners’ controlling interest of approximately $1.1 million for the year ended December 31, 2015, compared with a net unrealized gain attributable to the General Partners’ controlling interest of approximately $1.1 million from the prior year period. The net unrealized loss attributable to the General Partners’ controlling interest for the year ended December 31, 2015 was primarily due to increased investment rates reflecting market activity at the property in Lisle, Illinois. Partially offsetting the loss was a recognized gain on the sale of the property in Beaverton, Oregon.

~~Table of Contents~~16

~~RETAIL~~Table ~~PROPERTIES~~of Contents

Year Ended December 31,	Net InvestmentIncome/(Loss)2014		Net InvestmentIncome/(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

APARTMENT PROPERTIES

Net investment income



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

~~Net~~(1) The ~~investment income attributable to the general partners’ controlling interest for the Partnership’s retail properties was approximately $4.5 million for the year ended December 31~~Maplewood, ~~2014,~~New ~~which~~Jersey ~~represents~~property an increase of approximately $0.5 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 due to the additional income provided by the properties in North Fort Myers, Florida and Norcross, Georgia that were~~ acquired inon ~~March,~~April ~~2014 and December~~2, ~~2014, respectively~~2015. In addition, an increase in net investment income was also attributable to increased rents at the properties in Ocean City, Maryland and Westminster, Maryland. Partially offsetting the increase was a decrease in net investment income at the property in Dunn, North Carolina as result of increased operating expenses.

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

~~The~~Net retail properties owned by the Partnership recorded a net unrealized gain attributable to the general partners’ controlling interest of approximately $1.6 million for the year ended December 31, 2014, compared with a net unrealized gain attributable to the general partners’ controlling interest of approximately $2.3 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 unrealized gains at the properties in Hampton, Virginia, Ocean City, Maryland, Westminster, Maryland and Roswell, 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 income/(loss) ~~at the property in Dunn, North Carolina due to an increase in anticipated capital expenditures.~~

19Net investment income attributable to the General Partners’ controlling interest for the Partnership’s apartment properties was approximately $4.2 million for the year ended December 31, 2015, which represents an increase of approximately $0.7 million from the prior year period. The increase was primarily due to the acquisition of the apartment complex in Maplewood, New Jersey, increased rents at property #2 in Seattle, Washington, and increased occupancy at property #1 in Seattle, Washington.

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

~~HOTEL~~The ~~PROPERTY~~apartment properties owned by the Partnership recorded a net unrealized gain attributable to the General Partners’ controlling interest of approximately $6.6 million for the year ended December 31, 2015, compared with a net unrealized gain attributable to the General Partners’ controlling interest of approximately $2.8 million from the prior year period. These gains were primarily due to favorable market leasing assumptions at the properties in Seattle, Washington, Austin, Texas, and Charlotte, North Carolina.

Year Ended December 31,	Net InvestmentIncome/(Loss)2014		Net InvestmentIncome/(Loss)2013		RecognizedGain/(Loss)2014		UnrealizedGain/(Loss)2013			Occupancy2014		Occupancy2013
Property
Lake Oswego, OR (1)	$	911,295	$	1,166,789	$	476,599	$	(1,426,177	)		N/A		91	%

~~(1)~~Table ~~The~~of ~~Lake Oswego, Oregon property was sold on October 29, 2014, which was reflected as a recognized gain.~~Contents

~~Net~~RETAIL ~~investment~~PROPERTIES ~~income~~

Net investment 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.



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
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

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

~~The~~Net ~~Partnership’s~~investment ~~hotel~~income ~~property recorded a recognized gain~~ attributable to the ~~general~~General ~~partners~~Partners’ controlling interest of for the Partnership’s retail properties was approximately $0.5.6 million for the year ended December 31, ~~2014~~2015, ~~compared~~which ~~with~~represents an ~~unrealized~~increase ~~loss attributable to the general partners’ controlling interest~~ of approximately $1.41 million ~~for~~from the prior year period. The ~~recognized~~increase ~~gain~~ was largely due to the ~~sale~~additional ofincome provided by the ~~asset~~property ~~which~~in ~~occurred~~Norcross, onGeorgia ~~October 29~~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.

~~Other~~Unrealized gain/(loss)

~~Other~~The ~~net~~retail ~~investment~~properties ~~expense~~owned ~~mainly~~by ~~includes~~the ~~investment~~Partnership ~~management~~recorded ~~fees,~~a ~~other~~net ~~portfolio~~unrealized ~~level~~gain ~~expenses~~attributable ~~and~~to the General Partners’ controlling interest ~~income~~of approximately $5.2 ~~Other~~million for the year ended December 31, 2015, compared with a net ~~investment~~ ~~expense~~unrealized gain attributable to the ~~general~~General ~~partners~~Partners’ controlling interest ~~was~~of approximately $31.06 million from the prior year period. The net unrealized gain attributable to the General Partners’ controlling interest for the year ended December 31, ~~2014~~2015 was primarily due to favorable market leasing assumptions at the properties in Hampton, ~~which~~Virginia, ~~remained~~Ocean ~~relatively~~City, ~~unchanged~~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 ~~prior~~property in Norcross, Georgia, which was not held last year. Investment ~~period~~rates include direct and terminal capitalization rates, and discount rates, which reflect investors’ yield requirements on investments.

20 18

Table of Contents

~~(c)~~HOTEL ~~Inflation~~PROPERTY

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



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

~~Critical~~(1) The ~~Accounting~~Lake ~~Policies~~Oswego, Oregon property was sold on October 29, 2014. The net investment loss in 2015 represents post closing expenses.

~~The~~Net ~~preparation~~investment ofincome financial statements in conformity with accounting principles generally accepted in the United States of America, or “U.S. GAAP”, requires the application of accounting policies that often involve a significant degree of judgment. Management reviews critical estimates and assumptions on an ongoing basis. If management determines, as a result of its consideration of facts and circumstances, that modifications in assumptions and estimates are appropriate, results of operations and financial position as reported in the audited financial statements of the Real Property Account and the audited consolidated financial statements of the Partnership may change significantly.

~~The~~Net ~~following~~investment ~~sections~~loss ~~discuss~~attributable ~~those~~to ~~critical~~the ~~accounting policies~~General ~~applied~~Partners’ incontrolling ~~preparing~~interest for the ~~audited~~Partnership’s ~~financial~~hotel ~~statements~~property ofwas $0.1 million for the ~~Real~~year ~~Property~~ended ~~Account~~December ~~and~~31, ~~the~~2015, ~~audited~~which ~~consolidated~~represents ~~financial~~a ~~statements~~decrease of ~~the~~approximately ~~Partnership~~$1.0 ~~that~~million ~~are~~from ~~most~~the ~~dependent~~prior onyear period. The decrease at the ~~application~~property in Lake Oswego, Oregon was a result of ~~estimates~~the ~~and~~property ~~assumptions~~being sold on October 29, 2014.

~~Valuation~~Recognized ofand ~~Investments~~Unrealized gain/(loss)

~~Real~~The ~~estate~~Partnership ~~investments~~sold ~~are carried at fair value. Properties owned are initially recorded at~~ the ~~purchase~~hotel ~~price~~property ~~plus~~on ~~closing~~October ~~costs. Development~~29, ~~costs~~2014 and ~~major~~did ~~renovations~~not ~~are~~record ~~capitalized as~~ a ~~component~~net ofunrealized ~~cost,~~or ~~and~~recognized ~~routine~~gain/loss ~~maintenance~~attributable ~~and repairs are charged~~ to ~~expense~~the asGeneral ~~incurred.~~Partners’ ~~Real~~controlling ~~estate~~interest ~~costs~~for ~~include~~ the ~~cost~~year ofended ~~acquired~~December ~~property~~31, ~~including~~2015, ~~all~~compared ~~the~~with ~~tangible~~a ~~and intangible~~recognized ~~assets.~~gain ~~Tangible~~attributable ~~assets~~to ~~include~~ the ~~value~~General ofPartners’ ~~all~~controlling ~~land,~~interest ~~building and tenant improvements at the time~~ of ~~acquisition~~approximately $0.5 ~~Intangible~~million ~~assets~~for ~~include~~ the ~~value~~prior ofyear ~~any above and below market leases, in-place leases, and tenant relationships at the time of acquisition~~period.

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

~~The~~Other ~~purpose~~net ofinvestment anexpense ~~appraisal~~mainly isincludes toinvestment ~~estimate~~management ~~the~~fees, ~~fair~~other ~~value of~~portfolio ~~real~~level ~~estate~~expenses asand ofinterest ~~a specific date~~income. Other Innet ~~accordance~~investment ~~with~~expense ~~Financial~~attributable ~~Accounting~~to ~~Standards Board (“FASB”) authoritative guidance on fair value measurements and disclosures, fair value is~~ the ~~price~~General ~~that~~Partners’ ~~would~~controlling beinterest ~~received~~was toapproximately ~~sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date~~$3.3 ~~The~~million ~~estimate~~for ofyear ~~fair~~ended ~~value~~December is31, ~~based on the conventional approaches to value~~2015, ~~all of~~ which ~~require~~represents ~~the~~an ~~exercise~~increase of ~~subjective~~approximately ~~judgment~~$0.3 ~~The three~~million ~~approaches~~from ~~are: (1) current cost of reproducing~~ the ~~real~~prior ~~estate~~year ~~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~~. The ~~Key~~increase ~~inputs~~is ~~and~~primarily ~~assumptions~~due 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~~investment ~~the~~management ~~approximate value for the type of real estate in the market~~fees.

~~Cash~~(c) ~~equivalents~~Inflation ~~include short term investments with maturities of three months or less when purchased.~~

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

~~The preparation~~Critical ofAccounting ~~financial~~Policies 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.

21The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, or “U.S. GAAP”, requires the application of accounting policies that often involve a significant degree of judgment. Management reviews critical estimates and assumptions on an ongoing basis. If management determines, as a result of its consideration of facts and circumstances, that modifications in assumptions and estimates are appropriate, results of operations and financial position as reported in the financial statements of the Real Property Account and the consolidated financial statements of the Partnership may change significantly.

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

~~ITEM~~Valuation ~~7A.~~of ~~Quantitative~~Investments ~~and Qualitative Disclosures about Market Risk~~

~~Interest~~Real ~~Rate~~estate ~~Risk~~investments –are ~~The~~carried ~~general~~at ~~partners’~~fair ~~controlling~~value. ~~interest~~Properties ~~exposure~~owned toare ~~market~~initially ~~rate~~recorded ~~risk~~at ~~for~~the ~~changes~~purchase inprice ~~interest~~plus ~~rates relates~~closing tocosts. Development ~~approximately~~costs ~~53.50%~~and ofmajor ~~its~~renovations ~~investment~~are ~~portfolio~~capitalized as a component of ~~December 31~~cost, ~~2014,~~and ~~which~~routine ~~consists~~maintenance ~~primarily~~and ofrepairs ~~short-term~~are ~~commercial~~charged ~~paper~~to ~~and~~expense ~~fixed~~as ~~and~~incurred. Real ~~variable~~estate ~~interest~~costs ~~rate~~include ~~debt.~~the ~~The~~cost ~~Partnership~~of ~~does~~acquired ~~not~~property, ~~use~~including ~~derivative~~all ~~financial instruments.~~the Astangible aand ~~matter~~intangible ofassets. Tangible ~~policy,~~assets include the ~~Partnership~~value ~~places~~of ~~its~~all ~~investments~~land, ~~with~~building ~~high~~and ~~quality~~tenant ~~debt~~improvements ~~security~~at ~~issuers, limits~~ the ~~amount~~time of ~~credit~~acquisition. Intangible ~~exposure~~assets toinclude ~~any~~the ~~one~~value ~~issuer,~~of ~~limits~~any ~~duration~~above byand ~~restricting~~below ~~the~~market ~~term~~leases, in-place leases, and ~~holds~~tenant ~~investments~~relationships toat ~~maturity except~~the ~~under~~time ~~unusual~~of ~~circumstances~~acquisition.

~~The table below presents the amounts and related weighted interest rates of the Partnership’s cash, cash equivalents and short term investments at December 31, 2014:~~ 19

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

Table of Contents

~~The~~In ~~table~~general, ~~below~~fair ~~discloses~~value estimates are based upon property appraisal reports prepared by independent real estate appraisers (members of the ~~Partnership’s~~Appraisal ~~investment~~Institute ~~level~~or ~~debt~~an asequivalent organization) within a reasonable amount of ~~December 31,~~time ~~2014~~following acquisition of the real estate and no less frequently than annually thereafter. The ~~fair value~~Chief Real Estate Appraiser of ~~the~~Prudential ~~Partnership’s~~Investment ~~long-term~~Management, ~~investment~~Inc. ~~level~~(“PIM”, ~~debt~~renamed PGIM, Inc. beginning January 1, 2016 ), which is ~~affected~~an byindirectly ~~changes~~owned insubsidiary ~~market~~of ~~interest~~Prudential ~~rates~~Financial, is responsible for assuring that the valuation process provides independent and reasonable property fair value estimates. An ~~The~~unaffiliated ~~following~~third ~~table~~party ~~presents~~has ~~principal~~been ~~cash~~appointed ~~flows~~by ~~based~~PIM ~~upon~~to ~~maturity~~assist ~~dates~~the Chief Real Estate Appraiser in maintaining and monitoring the independence and the accuracy of the ~~debt~~appraisal ~~obligations~~process. The ~~and~~fair value of real estate investments does not reflect the ~~related~~transaction ~~weighted-average interest~~sale ~~rates~~costs, bywhich ~~expected~~may ~~maturity~~be ~~dates~~incurred ~~for~~upon disposition of the ~~debt~~real estate investments.

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

~~Credit~~Cash ~~Risk~~equivalents –include ~~The~~short-term ~~Partnership~~investments iswith ~~exposed~~maturities ~~to market risk from tenants. While the Partnership has not experienced any significant credit losses, in the event~~ of ~~significant~~three ~~increases~~months ~~in interest rates and/~~or anless ~~economic~~when ~~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~~purchased.

22Other Estimates

~~Table~~The preparation of ~~Contents~~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.

~~Item 8. Financial Statements and Supplementary Data~~20

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

~~Item 9~~ITEM 7A. ~~Changes~~Quantitative in and ~~Disagreements~~Qualitative ~~with~~Disclosures ~~Accountants~~about onMarket ~~Accounting and Financial Disclosure~~Risk

~~None~~Interest Rate Risk – The General Partners’ controlling interest exposure to market rate risk for changes in interest rates relates to approximately 40.50% of its investment portfolio as of December 31, 2015, which consists primarily of short-term commercial paper and fixed and variable interest rate debt. The Partnership does not use derivative financial instruments. As a matter of policy, the Partnership places its investments with high quality debt security issuers, limits the amount of credit exposure to any one issuer, limits duration by restricting the term, and holds investments to maturity except under unusual circumstances.

~~Item~~The ~~9A.~~table ~~Controls~~below presents the amounts and ~~Procedures~~related weighted average interest rates of the Partnership’s cash and cash equivalents at December 31, 2015:

Management’s Annual Report on Internal Control Over Financial Reporting as of December 31, 2014 are included on Page F-2 of this Annual Report on Form 10-K.



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

InThe ~~order~~table tobelow ~~ensure~~discloses ~~that~~ the ~~information we must disclose in our filings with the SEC is recorded, processed, summarized, and reported on a timely basis, the Company~~Partnership’s ~~management,~~investment ~~including~~level ~~our~~debt ~~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~~2015. ~~Based~~The onfair ~~such~~value ~~evaluation,~~of the ~~Chief~~Partnership’s ~~Executive~~long-term ~~Officer~~investment ~~and~~level ~~Chief~~debt ~~Financial~~is ~~Officer~~affected ~~have~~by ~~concluded~~changes ~~that,~~in asmarket ofinterest ~~December 31, 2014, our disclosure controls and procedures were effective~~rates. NoThe ~~change~~following intable ~~our~~presents ~~internal~~principal ~~control~~cash ~~over~~flows ~~financial~~based ~~reporting,~~upon asmaturity ~~defined~~dates inof ~~Exchange~~the ~~Act~~debt ~~Rule~~obligations ~~13a-15(f),~~and ~~occurred during~~ the ~~quarter~~related ~~ended~~weighted-average ~~December 31,~~interest ~~2014,~~rates 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~~expected ~~Committee~~maturity ofdates ~~Sponsoring Organizations~~for of the ~~Treadway Commission (COSO)~~debt.

Item 9B. Other Information



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

~~None~~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 operating results and liquidity.

23 21

Table of Contents

~~PART~~Item 8. ~~III~~Financial Statements and Supplementary Data

~~Item~~The ~~10.~~financial ~~Directors,~~statements ~~Executive~~and ~~Officers~~supplementary data are listed in the accompanying Index to the Financial Statements and ~~Corporate~~Supplementary ~~Governance~~Data on F-1.

~~THE~~Item 9. ~~PRUDENTIAL~~Changes ~~INSURANCE~~in ~~COMPANY~~and OFDisagreements ~~AMERICA~~with Accountants on Accounting and Financial Disclosure

~~DIRECTORS~~ None.

~~THOMAS J~~Item 9A. ~~BALTIMORE,~~ ~~JR.—Director.~~Controls ~~Chairman, Investment Committee; Member, Executive Committee; Member, Finance Committee. Mr. Baltimore is President, Chief Executive Officer~~ and ~~Trustee, RLJ Lodging Trust, and a director of Duke Realty Corporation and RLJ Lodging Trust. Age 51.~~ Procedures

~~GORDON~~Management’s M.Annual ~~BETHUNE—Director.~~Report ~~Member,~~on ~~Corporate~~Internal ~~Governance~~Control ~~and~~Over ~~Business~~Financial ~~Ethics Committee;~~Reporting ~~Member,~~as ~~Compensation Committee. Mr. Bethune is also a director~~ of ~~Honeywell International~~December 31, ~~Inc.~~2015 ~~and~~is ~~Sprint~~included ~~Nextel~~on ~~Corporation,~~Page ~~and~~F-2 isof athis ~~managing~~Annual ~~director~~Report ofon ~~g-b1~~Form ~~Partners~~10-K. ~~Age 73.~~

~~GILBERT~~In F.order ~~CASELLAS—Director.~~to ~~Member~~ensure that the information we must disclose in our filings with the SEC is recorded, ~~Corporate~~processed, ~~Governance~~summarized, ~~Committee:~~and ~~Member~~reported on a timely basis, ~~Finance~~the ~~Committee~~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 amended under the Securities Exchange Act of 1934 (“Exchange Act”), as of December 31, 2015. MrBased on such evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that, as of December 31, 2015 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 ~~Casellas~~31, 2015 that has materially affected, or is ~~also~~reasonably ~~a Chairman~~likely ofto ~~OMNITRU.~~materially ~~Age~~affect, 62our internal control over financial reporting.

~~JAMES G. CULLEN—Director. Member, Finance Committee; Member, Investment Committee. Mr.~~Item ~~Cullen is also a director of Agilent Technologies, Inc~~9B., ~~Avinger,~~Other ~~Inc., Johnson & Johnson, Keysight Technologies, Inc., and NeuStar, Inc. Age 72.~~ Information

~~MARK B~~None. ~~GRIER—Director. Vice Chairman of the Board of Prudential Financial, Inc. and The Prudential Insurance Company of America. Age 62.~~

CONSTANCE J. HORNER—Director. Chairman, Corporate Governance and Business Ethics Committee; Member, Compensation Committee; Member, Executive Committee. Ms. Horner is the former Assistant to the President of the United States and is a director of Ingersoll-Rand Company plc and Pfizer, Inc. Age 73. 22

~~MARTINA~~Table ~~T. HUND-MEJEAN—Director. Member, Audit Committee. Ms. Hund-Mejean is also the Chief Financial Officer~~ of ~~MasterCard Worldwide. Age 54.~~ Contents

~~KARL~~PART ~~J. KRAPEK—Director. Chairman, Executive Committee; Chairman, Compensation Committee. Mr. Krapek is also a director of Northrop Grumman Corporation. Age 66.~~ III

~~CHRISTINE A. POON—Director. Chairman, Finance Committee; Member, Investment Committee. Ms.~~Item ~~Poon is also a professor at the Fisher College of Business, The Ohio State University~~10. ~~Ms. Poon is also a director of Koninklijke Phillips Electronics NV~~Directors, ~~Regeneron~~Executive ~~Pharmaceuticals~~Officers and ~~The~~Corporate ~~Sherwin-Williams Company. Age 62.~~ Governance

~~DOUGLAS~~THE ~~SCOVANNER—Director.~~PRUDENTIAL ~~Member:~~INSURANCE ~~Audit~~COMPANY ~~Committee.~~OF ~~Mr. Scovanner is the founder and managing member of Comprehensive Financial Strategies, LLC. Age 59.~~ AMERICA

~~JOHN R. STRANGFELD, JR.—Director. Chairman, Chief Executive Officer, and President of Prudential Financial Inc. and The Prudential Insurance Company of America. Member, Executive Committee. Age 61.~~ DIRECTORS

~~JAMES~~THOMAS AJ. ~~UNRUH~~ BALTIMORE, JR.—Director. ~~Chairman~~Chair, ~~Audit~~Investment Committee; Member, Executive Committee.; ~~Founding Principal~~Member, ~~Alerion~~Finance ~~Capital~~Committee; ~~Group~~Member, ~~LLC~~Risk Committee. Mr. ~~Unruh~~Baltimore is ~~also~~President, aChief ~~director~~Executive ofOfficer ~~CSG~~and ~~Systems International~~Trustee, ~~Inc.,~~RLJ ~~Tenet~~Lodging ~~Healthcare Corporation~~Trust, and ~~serves~~a as director of ~~several~~Duke ~~privately~~Realty ~~held~~Corporation ~~companies~~and inRLJ ~~connection~~Lodging ~~with his position at Alerion Capital Group, LLC~~Trust. Age 7352.

24GORDON M. BETHUNE—Director. Member, Corporate Governance and Business Ethics Committee; Member, Compensation Committee. Mr. Bethune is also a director of Honeywell International, Inc. and Sprint Nextel Corporation, and is a managing director of g-b1 Partners. Age 74.

~~Table~~GILBERT F. CASELLAS—Director. Chair, Corporate Governance and Business Ethics Committee; Member, Audit Committee; Member, Executive Committee; Member, Risk Committee. Mr. Casellas is also a Chairman of ~~Contents~~OMNITRU. Age 63.

~~THE~~JAMES ~~PRUDENTIAL~~G. ~~INSURANCE~~CULLEN—Director. ~~COMPANY~~Member, OFFinance ~~AMERICA~~Committee; Member, Investment Committee. Mr. Cullen is also a director of Agilent Technologies, Inc., Avinger, Inc., Keysight Technologies, Inc., and NeuStar, Inc. Age 73.

~~PRINCIPAL~~MARK ~~OFFICERS~~B. **GRIER—Director. Vice Chairman of the Board of Prudential Financial, Inc. and The Prudential Insurance Company of America. Age 63.

~~SUSAN~~CONSTANCE LJ. ~~BLOUNT~~HORNER—~~Executive~~Director. ~~Vice~~Member, ~~President~~Corporate Governance and ~~General~~Business ~~Counsel~~Ethics Committee; Member, ~~Prudential~~Compensation Committee. ~~Age~~Ms. Horner 57is the former Assistant to the President of the United States and is a director of Ingersoll-Rand Company plc. Age 74.

~~ROBERT~~MARTINA MT. ~~FALZON~~HUND-MEJEAN—~~Executive~~Director. ~~Vice~~Member, ~~President~~Audit ~~and~~Committee. Ms. Hund-Mejean is also the Chief Financial Officer, ~~Prudential~~of MasterCard Worldwide. Age 55.

~~MARK~~KARL BJ. ~~GRIER~~KRAPEK—~~Vice~~Director. ~~Chairman~~Chair, ~~Prudential~~Executive Committee; Chair, Compensation Committee; Chair, Risk Committee. ~~Age~~Mr. Krapek 62is the former President and Chief Operating Officer, United Technologies Corporation, and is a director of Northrop Grumman Corporation. Age 67.

~~BARBARA~~PETER GR. ~~KOSTER—Senior~~LIGHTE–Director. Member, ~~Vice~~Investment ~~President~~Committee; Member, Corporate Governance and ~~Chief~~Business ~~Information~~Ethics ~~Officer~~Committee. Mr. Lighte served as Vice Chairman of J.P. Morgan Corporate Bank, ~~Prudential~~China and the founding Chairman of J.P. ~~Age~~Morgan 60Chase Bank China. Age 67.

~~CHARLES~~GEORGE FPAZ–Director. Member, ~~LOWREY—Executive~~Audit ~~Vice~~Committee. Mr. ~~President~~Paz is Chairman and ~~Chief~~CEO ~~Operating~~of ~~Officer,~~Express ~~International~~Scripts ~~Businesses,~~Holding ~~Prudential.~~Company ~~Age~~and 57a director of Honeywell International Inc. Age 60.

~~STEPHEN~~SANDRA PIANALTO ~~PELLETIER—Executive~~– ~~Vice~~Director. Member, Corporate Governance and Business Ethics Committee; Member, Finance Committee. Ms. Pianalto is the former President and Chief ~~Operating~~Executive Officer, Uof the Federal Reserve Bank of Cleveland and is a director of Eaton Corporation plc and The J.SM. ~~Businesses,~~Smucker ~~Prudential~~Company. Age 61.

~~JOHN~~CHRISTINE RA. ~~STRANGFELD~~POON—~~Chairman~~Director. Chair, ~~Chief~~Finance Committee; Member, Investment Committee; Member, Executive ~~Officer~~Committee; Member, Risk Committee. Ms. Poon is a professor at the Fisher College of Business, The Ohio State University and ~~President~~a director of Koninklijke Phillips Electronics NV, ~~Prudential~~Regeneron Pharmaceuticals and The Sherwin-Williams Company. Age 6163.

~~SHARON~~DOUGLAS CSCOVANNER—Director. ~~TAYLOR—Senior~~Chair: ~~Vice~~Audit ~~President~~Committee; Member, ~~Human~~Executive ~~Resources~~Committee; Member, ~~Prudential~~Risk Committee. Mr. Scovanner is the founder and managing member of Comprehensive Financial Strategies, LLC. Age 60.

~~RICHARD~~JOHN FR. ~~LAMBERT~~STRANGFELD, JR.—~~Senior~~Director. ~~Vice~~Chairman, Chief Executive Officer, and President of Prudential Financial Inc. and ~~Chief~~The ~~Actuary~~Prudential Insurance Company of America. Member, ~~Prudential~~Executive Committee. Age 5862.

~~NICHOLAS~~MICHAEL CA. ~~SILITCH—Senior~~TODMAN–Director. Member, ~~Vice~~Compensation ~~President~~Committee; ~~and~~Member, ~~Chief~~Finance ~~Risk~~Committee. Mr. ~~Officer~~Todman is a director of Brown-Forman Corporation and Newell Rubbermaid, ~~Prudential~~Inc. Age 5358.

~~SCOTT G. SLEYSTER—Senior Vice President and Chief Investment Officer, Prudential. Age 55.~~ 23

**Table ~~Principal officers~~ of ~~The Prudential Insurance Company of America hold comparable positions with Prudential Financial, Inc.~~Contents

25THE PRUDENTIAL INSURANCE COMPANY OF AMERICA

~~Table~~PRINCIPAL ofOFFICERS ~~Contents~~**

~~Code~~ROBERT ofM. ~~Ethics~~FALZON—Executive Vice President and Chief Financial Officer, Prudential. Age 56.

WeMARK ~~have~~B. ~~adopted~~GRIER—Vice ~~Prudential Financial’s code of business conduct and ethics~~Chairman, ~~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~~Prudential. ~~Making~~Age ~~the Right Choices is posted on Prudential Financial’s website at www~~63.~~investor.prudential.com.~~

InTIMOTHY ~~addition,~~P. weHARRIS ~~have~~—Executive ~~adopted~~Vice ~~Prudential~~President ~~Financial’s~~and ~~Corporate~~General ~~Governance Guidelines~~Counsel, ~~which we refer to herein as the “Corporate Governance Principles and Practices~~Prudential.” ~~Prudential~~Age ~~Financial’s Corporate Governance Principles and Practices are available free of charge at www~~55.~~investor.prudential.com.~~

~~Item~~BARBARA 11G. ~~Executive~~KOSTER—Senior ~~Compensation~~Vice President and Chief Information Officer, Prudential. Age 61.

~~The~~RICHARD ~~Real~~F. ~~Property~~LAMBERT—Senior ~~Account~~Vice ~~does~~President ~~not~~and ~~pay~~Chief ~~any fees~~Actuary, ~~compensation~~Prudential. orAge ~~reimbursement to any Director or Officer of the Registrant~~59.

~~Item~~CHARLES 12F. ~~Security~~LOWREY—Executive ~~Ownership~~Vice ofPresident ~~Certain~~and ~~Beneficial~~Chief ~~Owners~~Operating ~~and~~Officer, ~~Management~~International ~~and~~Businesses, ~~Related~~Prudential. ~~Stockholder~~Age ~~Matters~~58.

~~Not~~STEPHEN ~~applicable~~PELLETIER—Executive Vice President and Chief Operating Officer, U.S. Businesses, Prudential. Age 62.

~~Item~~NICHOLAS 13C. ~~Certain~~SILITCH—Senior ~~Relationships~~Vice President and ~~Related~~Chief ~~Transactions~~Risk Officer, ~~and~~Prudential. ~~Director~~Age ~~Independence~~54.

~~See~~SCOTT ~~Related~~G. ~~Transactions~~SLEYSTER—Senior inVice ~~Note~~President 10and ofChief ~~Notes~~Investment toOfficer, ~~the~~Prudential. ~~Consolidated~~Age ~~Financial Statements of the Partnership~~56.

~~The~~JOHN ~~Registrant~~R. ~~is an indirect wholly-owned subsidiary of Prudential~~STRANGFELD—Chairman, ~~which,~~Chief inExecutive ~~turn,~~Officer isand ~~an indirect~~President, ~~wholly-owned~~ ~~subsidiary of~~ Prudential ~~Financial~~. ~~All~~Age ~~Directors and Executive Officers of the Registrant are employees and officers of Prudential~~62.

~~Item~~SHARON 14C. ~~Principal~~TAYLOR—Senior ~~Accounting~~Vice ~~Fees~~President, ~~and~~Human ~~Services~~Resources, Prudential. Age 61.

~~The~~** ~~Audit~~Principal ~~Committee~~officers of ~~the~~The ~~Board of Directors of~~ Prudential ~~Financial~~Insurance ~~has~~Company ~~appointed PricewaterhouseCoopers LLP as the independent registered public accounting firm~~ of ~~Prudential~~America ~~Financial~~hold ~~and~~comparable ~~certain~~positions ofwith 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.~~

26 24

Table of Contents

~~PART~~Code IVof Ethics

~~Item~~We ~~15.~~have ~~Exhibits~~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 ~~Statement~~Officer ~~Schedules~~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.

~~(a)~~In ~~The~~addition, ~~following~~we ~~documents~~have ~~are~~adopted ~~filed~~Prudential Financial’s Corporate Governance Guidelines, which we refer to herein as ~~part~~the “Corporate Governance Principles and Practices.” Prudential Financial’s Corporate Governance Principles and Practices are available free of ~~this~~charge ~~report:~~at www.investor.prudential.com.

1Item 11. ~~Financial~~Executive ~~Statements~~Compensation

~~See~~The ~~the~~Real ~~Index~~Property toAccount ~~Financial~~does ~~Statements~~not ~~and~~pay ~~Supplementary~~any ~~Data~~fees, oncompensation ~~page~~or ~~F-1.~~reimbursement to any Director or Officer of the Registrant.

2Item 12. ~~Financial~~Security ~~Statement~~Ownership ~~Schedules~~of Certain Beneficial Owners and Management and Related Stockholder Matters

~~The~~Not 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: applicable.

~~Schedule III~~Item 13. ~~Real~~Certain ~~Estate Owned:~~Relationships ~~Properties~~and Related Transactions, and Director Independence

See ~~the~~Related ~~Index~~Transactions toin ~~Financial~~Note ~~Statements~~10 ~~and~~of ~~Supplementary~~Notes ~~Data~~to onthe ~~page~~Consolidated ~~F-1.~~Financial Statements of the Partnership.

3The Registrant is an indirect wholly-owned subsidiary of Prudential, which, in turn, is a wholly-owned subsidiary of Prudential Financial. ~~Documents~~All ~~Incorporated~~Directors byand ~~Reference~~Executive Officers of the Registrant are employees and officers of Prudential.

~~See~~Item 14. ~~the~~Principal ~~following~~Accounting ~~list~~Fees ofand ~~exhibits.~~ Services

4The 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. ~~Exhibits~~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 for 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.

~~See the following list of exhibits.~~ 25

~~(b)~~Table ~~None.~~of Contents

~~(c)~~PART The following is a list of Exhibits to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014. The Registrant will furnish a copy of any Exhibit listed below to any security holder of the Registrant who requests it 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.IV

3Item 15.1 ~~Amended~~Exhibits ~~Charter~~and ofFinancial ~~The Prudential Insurance Company of America, filed as Exhibit (3A) in Post-Effective Amendment No. 18 to Form S-1, Registration~~ Statement ~~No. 33-20083-01, filed April 14, 2005, and incorporated herein by reference.~~Schedules

~~3.2~~(a) ~~Amended By-Laws of~~ The ~~Prudential~~following ~~Insurance~~documents ~~Company~~are ~~of America,~~ filed as ~~Exhibit~~part ~~(F)(ii)~~of inthis ~~Post-Effective Amendment No. 32 to Form N-6, Registration Statement No. 33-20000, filed April 21, 2009, and incorporated herein by reference.~~report:

~~3.3 Resolution of the Board of Directors establishing The Prudential Variable Contract Real Property Account, filed as Exhibit (3C) in Post-Effective Amendment No. 9 to Form S-~~1~~, Registration Statement No~~. ~~33-20083-01,~~Financial ~~filed April 9, 1997, and incorporated herein by reference.~~Statements

~~4.1~~See ~~Revised~~the ~~Individual~~Index ~~Variable~~to ~~Annuity~~Financial ~~Contract~~Statements ~~filed~~and asSupplementary ~~Exhibit~~Data ~~(4A)(~~on i)page ~~in Post~~F-~~Effective Amendment No. 9 to Form S-~~1~~, Registration Statement No~~. ~~33-20083-01, filed April 9, 1997, and incorporated herein by reference.~~

4.2 ~~Discovery Plus Contract, filed as Exhibit (4A)(ii) in Post-Effective Amendment No~~. 9Financial ~~to Form S-1, Registration~~ Statement ~~No. 33-20083-01, filed April 9, 1997, and incorporated herein by reference.~~Schedules

~~4.3~~The ~~Custom~~following ~~VAL~~financial ~~(previously~~statement ~~named~~schedules ~~Adjustable~~of ~~Premium~~The ~~VAL)~~Prudential ~~Life~~Variable ~~Insurance~~Contract ~~Contracts~~Real ~~with~~Property ~~fixed~~Partnership ~~death~~should ~~benefit,~~be ~~filed~~read ~~as Exhibit (4C)(i)~~ in ~~Post-Effective~~conjunction ~~Amendment~~with ~~No.~~the 19financial tostatements ~~Form~~in ~~S-6,~~Item 8 ~~Registration~~of ~~Statement~~this ~~No.~~Annual ~~33-20000,~~Report ~~filed~~on ~~April~~Form ~~28, 1997, and incorporated herein by reference.~~10-K:

~~4.4~~Schedule ~~Custom VAL (previously named Adjustable Premium VAL) Life Insurance Contracts with variable death benefit, filed as Exhibit (4C)(ii) in Post-Effective Amendment No~~III. 19Real toEstate ~~Form~~Owned: ~~S-6, Registration Statement No. 33-20000, filed April 28, 1997, and incorporated herein by reference.~~Properties

~~4.5~~See ~~Variable~~the ~~Appreciable~~Index ~~Life~~to ~~Insurance~~Financial ~~Contracts~~Statements ~~with~~and ~~fixed~~Supplementary ~~death~~Data ~~benefit,~~on ~~filed~~page ~~as Exhibit (4B)(i) in Post Effective Amendment No. 19 to Form S~~F-~~6, Registration Statement No~~1. ~~33-20000, filed April 28, 1997, and incorporated herein by reference.~~

43.6 ~~Variable~~Documents ~~Appreciable~~Incorporated Life Insurance Contracts with variable death benefit, filed as (4B)(ii) in Post Effective Amendment No. 19 to Form S-6, Registration Statement No. 33-20000, filed April 28, 1997, and incorporated herein by ~~reference.~~Reference

9.See ~~None~~the following list of exhibits.

274. Exhibits

~~Table~~See the following list of ~~Contents~~exhibits.

~~10.1~~(b) ~~Investment Management Agreement between Prudential Investment Management, Inc~~None. 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.

(c) The following is a list of Exhibits to the Registrant’s Annual Report on Form 10.2-K ~~Administrative~~for ~~Service~~the ~~Agreement~~fiscal ~~among~~year ~~PIM~~ended December 31, ~~Prudential~~2015. ~~Insurance~~The ~~Company~~Registrant ofwill ~~America,~~furnish ~~Pruco~~a ~~Life~~copy ~~Insurance~~of ~~Company,~~any ~~and~~Exhibit ~~Pruco~~listed ~~Life~~below ~~Insurance~~to ~~Company~~any security holder of ~~New~~the ~~Jersey,~~Registrant ~~filed~~who asrequests ~~Exhibit~~it ~~(10B)~~upon inpayment ~~Post-Effective~~of ~~Amendment~~a Nofee of 15 cents per page. 17All toExhibits ~~Form~~are ~~S-1,~~either ~~Registration~~contained ~~Statement~~in ~~No.~~this ~~33-20083-01,~~Annual ~~filed~~Report ~~April~~on ~~14,~~Form ~~2004,~~10-K ~~and~~or are incorporated ~~herein~~ by reference as indicated below.

~~10.~~3.1 ~~Partnership~~Amended ~~Agreement~~Charter of The Prudential ~~Variable~~Insurance ~~Contract~~Company ~~Real~~of ~~Property~~America, ~~Partnership~~ filed asby Exhibit ~~(10C) in Post-Effective Amendment No. 9~~ to Form S-1, Registration Statement No. 33333-~~20083-01~~158228, filed ~~April~~March 927, ~~1997~~2009, and incorporated herein by reference.

113.2 ~~Not~~Amended ~~applicable~~By-Laws of The Prudential Insurance Company of America, filed by Exhibit to Form S-1, Registration Statement No. 333-158228, filed March 27, 2009, and incorporated herein by reference.

123.3 ~~Not~~Resolution ~~applicable~~of the Board of Directors establishing The Prudential Variable Contract Real Property Account, filed as Exhibit (3C) in Post-Effective Amendment No. 9 to Form S-1, Registration Statement No. 33-20083-01, filed April 9, 1997, and incorporated herein by reference.

164.1 ~~None~~Revised Individual Variable Annuity Contract filed as Exhibit (4A)( i) in Post-Effective Amendment No. 9 to Form S-1, Registration Statement No. 33-20083-01, filed April 9, 1997, and incorporated herein by reference.

184.2 ~~None~~Discovery Plus Contract, filed as Exhibit (4A)(ii) in Post-Effective Amendment No. 9 to Form S-1, Registration Statement No. 33-20083-01, filed April 9, 1997, and incorporated herein by reference.

224.3 ~~Not~~Custom ~~applicable~~VAL (previously named Adjustable Premium VAL) Life Insurance Contracts with fixed death benefit, filed as Exhibit 1.A(5)(a) in Post-Effective Amendment No. 19 to Form S-6, Registration Statement No. 33-20000, filed April 28, 1997, and incorporated herein by reference.

234.4 ~~None~~Custom VAL (previously named Adjustable Premium VAL) Life Insurance Contracts with variable death benefit, filed as Exhibit 1.A(5)(b) in Post-Effective Amendment No. 19 to Form S-6, Registration Statement No. 33-20000, filed April 28, 1997, and incorporated herein by reference.

244.5 ~~Powers~~Variable ofAppreciable ~~Attorney~~Life ~~are~~Insurance Contracts with fixed death benefit, filed ~~herewith~~as Exhibit 1.A(5)(c) in Post Effective Amendment No. 19 to Form S-6, Registration Statement No. 33-20000, filed April 28, 1997, and incorporated herein by reference.

314.6 Variable Appreciable Life Insurance Contracts with variable death benefit, filed as Exhibit 1.A(5)(d) ~~Section~~in ~~302~~Post ~~Certification~~Effective ofAmendment ~~Chief~~No. ~~Executive~~19 ~~Officer~~to Form S-6, Registration Statement No. 33-20000, filed April 28, 1997, and incorporated herein by reference.

319.2 ~~Section 302 Certification of Chief Financial Officer~~None.

3210.1 ~~Section~~Investment ~~906~~Management ~~Certification~~Agreement ofbetween ~~Chief~~Prudential ~~Executive~~Investment ~~Officer~~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.

~~32.2 Section 906 Certification of Chief Financial Officer.~~26

~~101.INS-XBRL~~Table ~~Instance~~of 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 DocumentContents

2810.2 Administrative Service Agreement among PIM, Prudential Insurance Company of America, Pruco Life Insurance Company, and Pruco Life Insurance Company of New Jersey, filed 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.

~~Table~~10.3 Partnership Agreement of ~~Contents~~The Prudential Variable Contract Real Property Partnership filed as Exhibit (10C) in Post-Effective Amendment No. 9 to Form S-1, Registration Statement No. 33-20083-01, filed April 9, 1997, and incorporated herein by reference.

~~SIGNATURES~~11. Not applicable.

~~Pursuant~~12. toNot 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 12th day of March, 2015applicable.

~~THE~~16. ~~PRUDENTIAL INSURANCE COMPANY OF AMERICA~~ None.

in18. ~~respect of~~ None.

~~The Prudential~~22. ~~Variable~~Not ~~Contract Real Property Account~~ applicable.

~~(Registrant)~~23. None.

~~By: /s/ Robert M~~24. ~~Falzon~~Powers ~~Robert~~of M.Attorney ~~Falzon~~are ~~Executive~~filed ~~Vice President and Chief Financial Officer (Authorized Signatory and Principal Financial Officer)~~herewith.

~~Pursuant~~31.1 toSection ~~the~~302 ~~requirements~~Certification of ~~the~~Chief ~~Securities~~Executive ~~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~~Officer.

~~Signature Title /s/ John R~~31.2 ~~Strangfeld~~Section ~~Chief~~302 ~~Executive~~Certification ~~Officer,~~of ~~President and Director John R. Strangfeld /s/ Robert M. Falzon Executive Vice President and~~ Chief Financial Officer ~~Robert M~~. Falzon /s/ Robert D. Axel Senior Vice President and Principal Accounting Officer Robert D. Axel */s/ Thomas J. Baltimore, Jr. Director Thomas J. Baltimore, Jr. */s/ Gordon M. Bethune Director Gordon M. Bethune */s/ Gilbert F. Casellas Director Gilbert F. Casellas */s/ James G. Cullen Director James G. Cullen */s/ Mark B. Grier Director Mark B. Grier */s/ Constance J. Horner Director Constance J. Horner */s/ Martina T. Hund-Mejean Director Martina T. Hund-Mejean */s/ Karl J. Krapek Director Karl J. Krapek

2932.1 Section 906 Certification of Chief Executive Officer.

~~Table~~32.2 Section 906 Certification of ~~Contents~~Chief Financial Officer.

*/s/ Christine A101.INS ~~Poon~~-XBRL ~~Director~~Instance ~~Christine A. Poon */s/ Douglas Scovanner Director Douglas Scovanner */s/ James A. Unruh Director James A. Unruh~~Document

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

30101.CAL -XBRL Taxonomy Extension Calculation Linkbase Document.

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

~~THE~~101.PRE ~~PRUDENTIAL~~-XBRL ~~VARIABLE~~Taxonomy ~~CONTRACT~~Extension ~~REAL~~Presentation ~~PROPERTY~~Linkbase ~~ACCOUNT~~ Document.

~~(Registrant)~~101.DEF -XBRL Taxonomy Extension Definition Linkbase Document

~~IN DEX~~ 27

A. THE PRUDENTIAL 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-13
Report of Independent Registered Public Accounting Firm on Financial Statement Schedules			F-14
Consolidated Statements of Assets and Liabilities – December 31, 2014 and 2013			F-15
Consolidated Statements of Operations – Years Ended December 31, 2014, 2013 and 2012			F-16
Consolidated Statements of Changes in Net Assets – Years Ended December 31, 2014, 2013 and 2012			F-17
Consolidated Statements of Cash Flows – Years Ended December 31, 2014, 2013 and 2012			F-18
Consolidated Schedules of Investments – December 31, 2014 and 2013			F-19
Notes to Consolidated Financial Statements			F-21
Financial Statement Schedules:
For the period ended December 31, 2014
Schedule III – Real Estate Owned: Properties			F-33

Table of Contents

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

~~F-1~~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.

~~Table~~THE ofPRUDENTIAL ~~Contents~~INSURANCE COMPANY OF AMERICA

~~Management’s~~in ~~Annual~~respect ~~Report on Internal Control Over Financial Reporting~~ of

~~Management of~~ The Prudential ~~Insurance~~Variable ~~Company~~Contract ofReal ~~America~~Property (the “Company”) is responsible for establishing and maintaining adequate internal control over financial reporting. Management conducted an assessment of the effectiveness, as of December 31, 2014, 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, 2014. Account

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 (1Registrant) pertain to the maintenance of records that, 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.

~~Because~~By: of/s/ ~~its~~Robert ~~inherent~~M. ~~limitations,~~Falzon ~~internal~~Robert ~~control over financial reporting may not prevent or detect misstatements~~M. ~~Also,~~FalzonExecutive ~~projections~~Vice ~~of any~~President ~~evaluation~~and ofChief ~~effectiveness~~Financial toOfficer(Authorized ~~future~~Signatory ~~periods~~and ~~are~~Principal ~~subject~~Financial ~~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.~~ Officer)

~~This~~Pursuant ~~annual~~to ~~report~~the ~~does~~requirements ~~not include an attestation report~~ of the ~~Company’s~~Securities ~~registered~~Exchange ~~public~~Act ~~accounting~~of ~~firm~~1934, ~~PricewaterhouseCoopers~~this ~~LLP, regarding~~report ~~internal~~has ~~control~~been ~~over~~signed ~~financial~~below ~~reporting. The Company’s Internal Controls over Financial Reporting were not subject to attestation~~ by the ~~Company’s~~following ~~registered~~persons ~~public~~on ~~accounting~~behalf ~~firm pursuant to temporary rules~~ of the ~~Securities~~ Registrant and ~~Exchange~~in ~~Commission that permit~~ the ~~Company~~capacities toindicated ~~provide~~on ~~only~~March 10, ~~management’s report in this annual report~~2016.

~~March 12~~Signature Title /s/ John R. Strangfeld Chief Executive Officer, ~~2015~~President and Director John R. Strangfeld /s/ Robert M. Falzon Executive Vice President and Robert M. Falzon Chief Financial Officer /s/ Robert D. Axel Senior Vice President and Robert D. Axel Principal Accounting Officer */s/ Thomas J. Baltimore, Jr. Director Thomas J. Baltimore, Jr. */s/ Gordon M. Bethune Director Gordon M. Bethune */s/ Gilbert F. Casellas Director Gilbert F. Casellas */s/ James G. Cullen Director James G. Cullen */s/ Mark B. Grier Director Mark B. Grier

~~F-2~~ 28

Table of Contents

~~Report~~*/s/ ofConstance ~~Independent~~J. ~~Registered~~Horner ~~Public~~Director ~~Accounting~~Constance ~~Firm~~J. Horner */s/ Martina T. Hund-Mejean Director Martina T. Hund-Mejean */s/ Karl J. Krapek Director Karl J. Krapek */s/ Sandra Pianalto Director Sandra Pianalto */s/ Christine A. Poon Director Christine A. Poon */s/ Douglas Scovanner Director Douglas Scovanner

To*By: ~~the~~/s/ ~~Board~~Sun-Jin ofMoon ~~Directors~~Sun-Jin of Moon(Attorney-in-Fact)

~~The Prudential Insurance Company of America~~ 29

~~and~~Table ~~the Contract Owners~~ of Contents

~~The Prudential~~Item ~~Variable~~8. ~~Contract~~Financial ~~Real~~Statements ~~Property~~and ~~Account~~Supplementary Data

InTHE ~~our~~PRUDENTIAL ~~opinion,~~VARIABLE ~~the~~CONTRACT ~~accompanying~~REAL ~~statements~~PROPERTY 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 The Prudential 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 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. 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. ACCOUNT

~~/s/ PricewaterhouseCoopers LLP New York, New York March 12, 2015~~(Registrant)

~~F-3~~ INDEX



A. THE PRUDENTIAL 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

~~FINANCIAL~~All ~~STATEMENTS~~other OFschedules are omitted because they are not applicable, or because the required information is included in the financial statements or notes thereto.

~~THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY ACCOUNT~~ F-1

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

~~December 31,~~Management’s ~~2014~~Annual ~~and~~Report ~~2013~~on Internal Control Over Financial Reporting

	2014			2013
ASSETS
Investment in The Prudential Variable Contract Real Property Partnership	$	79,093,169		$	77,305,072
Net Assets	$	79,093,169		$	77,305,072
NET ASSETS, representing:
Equity of contract owners	$	65,089,739		$	62,658,750
Equity of The Prudential Insurance Company of America		14,003,430			14,646,322
	$	79,093,169		$	77,305,072
Units outstanding		27,271,568			28,364,407
Portfolio shares held		1,954,048			2,046,322
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	$	2,859,310		$	3,788,460		$	3,476,240
EXPENSES
Charges to contract owners for assuming mortality risk and expense risk and for administration		493,770			466,434			446,981
NET INVESTMENT INCOME		2,365,540			3,322,026			3,029,259
NET RECOGNIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Change in unrealized gain (loss) on investments allocated from The Prudential Variable Contract Real Property Partnership		2,319,656			3,065,453			1,162,226
Net gain (loss) recognized on investments allocated from The Prudential Variable Contract Real Property Partnership		199,538			59,443			144,226
NET GAIN (LOSS) ON INVESTMENTS		2,519,194			3,124,896			1,306,452
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	4,884,734		$	6,446,922		$	4,335,711
STATEMENTS OF CHANGES IN NET ASSETS
For the years ended December 31, 2014, 2013 and 2012
	2014			2013			2012
OPERATIONS
Net investment income	$	2,365,540		$	3,322,026		$	3,029,259
Change in unrealized gain (loss) on investments allocated from The Prudential Variable Contract Real Property Partnership		2,319,656			3,065,453			1,162,226
Net gain (loss) recognized on investments allocated from The Prudential Variable Contract Real Property Partnership		199,538			59,443			144,226
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		4,884,734			6,446,922			4,335,711
CAPITAL TRANSACTIONS
Net contributions (withdrawals) by contract owners		(1,480,761	)		(875,954	)		(427,152	)
Net contributions (withdrawals) by The Prudential Insurance Company of America		(1,615,876	)		(2,240,215	)		(975,113	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL TRANSACTIONS		(3,096,637	)		(3,116,169	)		(1,402,265	)
TOTAL INCREASE (DECREASE) IN NET ASSETS		1,788,097			3,330,753			2,933,446
NET ASSETS
Beginning of year		77,305,072			73,974,319			71,040,873
End of year	$	79,093,169		$	77,305,072		$	73,974,319

Management of The Prudential Insurance Company of America (the “Company”) is responsible for establishing and maintaining adequate internal control over financial reporting. Management conducted an assessment of the effectiveness, as 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.

~~The~~Our ~~accompanying~~internal ~~notes~~control ~~are~~over anfinancial ~~integral~~reporting ~~part~~is a process designed by or under the supervision of ~~these~~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) pertain to the maintenance of records that, 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-4~~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.

~~NOTES~~March 10, TO2016 ~~THE FINANCIAL STATEMENTS OF~~

~~THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY ACCOUNT~~ F-2

~~December~~Table ~~31,~~of ~~2014~~ Contents

~~Note 1:~~Report ~~General~~of Independent Registered Public Accounting Firm

~~The~~To ~~Prudential Variable Contract Real Property Account (~~the ~~“Real Property Account” or the “Registrant”) was established on November 20, 1986 by resolution of the~~ Board of Directors of The Prudential Insurance Company of America (“Prudential” or the “Company”), as a separate investment account pursuant to New Jersey law and is registered under the Securities Act of 1933, as amended. Prudential is an indirect wholly-owned subsidiary of Prudential Financial, Inc. (“Prudential Financial”). The assets of the Real Property Account are segregated from Prudential’s other assets. The Real Property Account is used to fund benefits under certain variable life insurance and variable annuity contracts issued by Prudential. These products are Variable Appreciable Life (“PVAL”, “PVAL $100,000+ Face Value”, and “Custom VAL”), Discovery Plus (“PDISCO+”), and Variable Investment Plan (“VIP”).

The ~~assets of the Real Property Account are invested in The~~ Prudential ~~Variable~~Insurance ~~Contract~~Company Real Property Partnership (the “Partnership”). The Partnership is the investment vehicle for assets allocated to the real estate investment option under certain variable life insurance and variable annuity contracts. The Real Property Account, along with the Pruco Life Variable Contract Real Property Account and the Pruco Life of New Jersey Variable Contract Real Property Account, are the sole investors in the Partnership. These financial statements should be read in conjunction with the audited consolidated financial statements of the Partnership. America

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

~~Note~~The 2:Prudential ~~Summary~~Variable ofContract ~~Significant~~Real ~~Accounting~~Property ~~Policies~~ Account

AIn 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 The Prudential 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. ~~Basis~~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. 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.

~~The~~/s/ ~~financial~~PricewaterhouseCoopers ~~statements~~LLP ~~have~~New ~~been~~York, ~~prepared~~New inYork ~~accordance~~March ~~with~~10, 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. 2016

~~Use of Estimates~~ F-3

~~The preparation~~Table 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. Contents

B.FINANCIAL ~~Investment~~STATEMENTS ~~in Partnership Interest~~ OF

~~The~~THE ~~investment~~PRUDENTIAL inVARIABLE ~~the~~CONTRACT ~~Partnership~~REAL isPROPERTY based on the Real Property Account’s proportionate interest of the Partnership’s fair value. At December 31, 2014 and 2013, the Real Property Account’s interest in the General Partners Controlling Interest was 42.0% or 1,954,048 shares and 41.7% or 2,046,322 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. ACCOUNT

C.STATEMENTS ~~Income~~OF ~~Recognition~~NET ASSETS

~~Net investment income~~December 31, ~~recognized~~2015 and ~~unrealized~~2014 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.

D. Equity of The Prudential Insurance Company of America



	December 31, 2015		December 31, 2014
ASSETS
Investment in The Prudential Variable Contract Real Property Partnership	$	84,380,032	$	79,093,169
Net Assets	$	84,380,032	$	79,093,169
NET ASSETS, representing:
Equity of contract owners	$	69,744,715	$	65,089,739
Equity of The Prudential Insurance Company of America	14,635,317		14,003,430
	$	84,380,032	$	79,093,169
Units outstanding	26,861,466		27,271,568
Portfolio shares held	1,910,381		1,954,048
Portfolio net asset value per share	$	44.17	$	40.48

~~Prudential~~STATEMENTS ~~maintains~~OF 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’ accounts or the related unit values. OPERATIONS

For the years ended December 31, 2015, 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.

F-5



	December 31, 2015		December 31, 2014		December 31, 2013
INVESTMENT INCOME
Net investment income allocated from The Prudential Variable Contract Real Property Partnership	$	2,557,161	$	2,859,310	$	3,788,460
EXPENSES
Charges to contract owners for assuming mortality and expense risk and for administration	516,043		493,770		466,434
NET INVESTMENT INCOME	2,041,118		2,365,540		3,322,026
NET RECOGNIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net unrealized gain (loss) on investments allocated from The Prudential Variable Contract Real Property Partnership	4,476,829		2,319,656		3,065,453
Net recognized gain (loss) on investments allocated from The Prudential Variable Contract Real Property Partnership	53,008		199,538		59,443
NET GAIN (LOSS) ON INVESTMENTS	4,529,837		2,519,194		3,124,896
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	6,570,955	$	4,884,734	$	6,446,922

~~Table~~STATEMENTS ofOF ~~Contents~~CHANGES IN NET ASSETS

~~NOTES~~For TOthe ~~THE~~years ~~FINANCIAL~~ended ~~STATEMENTS~~December 31, OF2015, 2014 and 2013

THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY ACCOUNT



	December 31, 2015			December 31, 2014			December 31, 2013
OPERATIONS
Net investment income	$	2,041,118		$	2,365,540		$	3,322,026
Net unrealized gain (loss) on investments allocated from The Prudential Variable Contract Real Property Partnership	4,476,829			2,319,656			3,065,453
Net recognized gain (loss) on investments allocated from The Prudential Variable Contract Real Property Partnership	53,008			199,538			59,443
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	6,570,955			4,884,734			6,446,922
CAPITAL TRANSACTIONS
Net contributions (withdrawals) by contract owners	(668,585		)	(1,480,761		)	(875,954		)
Net contributions (withdrawals) by The Prudential Insurance Company of America	(615,507		)	(1,615,876		)	(2,240,215		)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL TRANSACTIONS	(1,284,092		)	(3,096,637		)	(3,116,169		)
TOTAL INCREASE (DECREASE) IN NET ASSETS	5,286,863			1,788,097			3,330,753
NET ASSETS
Beginning of year	79,093,169			77,305,072			73,974,319
End of year	$	84,380,032		$	79,093,169		$	77,305,072

~~December~~The ~~31,~~accompanying ~~2014~~notes are an integral part of these financial statements.

~~Note 3: Taxes~~ F-4

~~Prudential~~Table ~~is taxed as a “life insurance company”, as defined by the Internal Revenue Code. The results~~ of operations of the Real Property Account form a part of 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. Contents

~~Note~~NOTES 4:TO ~~Net~~THE ~~Contributions~~FINANCIAL ~~(Withdrawals)~~STATEMENTS ~~by Contract Owners~~ OF

~~Net~~THE ~~contributions~~PRUDENTIAL ~~(withdrawals)~~VARIABLE byCONTRACT ~~contract~~REAL ~~owners~~PROPERTY ~~for the Real Property Account by product for the years ended December 31, 2014, 2013 and 2012 were as follows:~~ ACCOUNT

2014:	VIP &PDISCO+			PVAL & PVAL$100,000+ facevalue			CVAL		TOTAL
Contract owner net payments	$	28,400		$	2,723,767		$	—	$	2,752,167
Policy loans		—			(1,024,541	)		—		(1,024,541	)
Policy loan repayments and interest		—			1,121,325			—		1,121,325
Surrenders, withdrawals, and death benefits		(329,352	)		(2,220,937	)		—		(2,550,289	)
Net transfers from/(to) other subaccounts or fixed rate option		(41,699	)		(104,694	)		—		(146,393	)
Administrative and other charges		(514	)		(1,632,516	)		—		(1,633,030	)
	$	(343,165	)	$	(1,137,596	)	$	—	$	(1,480,761	)
2013:	VIP &PDISCO+			PVAL & PVAL$100,000+ facevalue			CVAL		TOTAL
Contract owner net payments	$	1,231		$	2,837,353		$	—	$	2,838,584
Policy loans		—			(1,153,852	)		—		(1,153,852	)
Policy loan repayments and interest		—			1,240,964			—		1,240,964
Surrenders, withdrawals, and death benefits		(212,815	)		(2,076,985	)		—		(2,289,800	)
Net transfers from/(to) other subaccounts or fixed rate option		23,009			199,338			—		222,347
Administrative and other charges		(595	)		(1,733,602	)		—		(1,734,197	)
	$	(189,170	)	$	(686,784	)	$	—	$	(875,954	)
2012:	VIP &PDISCO+			PVAL & PVAL$100,000+ facevalue			CVAL		TOTAL
Contract owner net payments	$	2,816		$	2,565,099		$	—	$	2,567,915
Policy loans		—			(1,089,223	)		—		(1,089,223	)
Policy loan repayments and interest		—			1,433,560			—		1,433,560
Surrenders, withdrawals, and death benefits		(153,112	)		(2,333,863	)		—		(2,486,975	)
Net transfers from/(to) other subaccounts or fixed rate option		118,354			894,420			—		1,012,774
Administrative and other charges		(673	)		(1,864,530	)		—		(1,865,203	)
	$	(32,615	)	$	(394,537	)	$	—	$	(427,152	)

December 31, 2015

~~F-6~~Note 1: General

~~Table~~The Prudential Variable Contract Real Property Account (the “Real Property Account” or the “Registrant”) was established on November 20, 1986 by resolution of ~~Contents~~the Board of Directors of The Prudential Insurance Company of America (“Prudential” or the “Company”), as a separate investment account pursuant to New Jersey law and is registered under the Securities Act of 1933, as amended. Prudential is a wholly-owned subsidiary of Prudential Financial, Inc. (“Prudential Financial”). The assets of the Real Property Account are segregated from Prudential’s other assets. The Real Property Account is used to fund benefits under certain variable life insurance and variable annuity contracts issued by Prudential. These products are Variable Appreciable Life (“PVAL”, “PVAL $100,000+ Face Value”, and “CVAL”), Discovery Plus (“PDISCO+”), and Variable Investment Plan (“VIP”).

~~NOTES~~The TOassets ~~THE~~of ~~FINANCIAL~~the ~~STATEMENTS~~Real OFProperty Account are invested in The Prudential Variable Contract Real Property Partnership (the “Partnership”). The Partnership is the investment vehicle for assets allocated to the real estate investment option under certain variable life insurance and variable annuity contracts. The Real Property Account, along with the Pruco Life Variable Contract Real Property Account and the Pruco Life of New Jersey Variable Contract Real Property Account, are the sole investors in the Partnership. These financial statements should be read in conjunction with the audited consolidated financial statements of the Partnership.

~~THE~~The ~~PRUDENTIAL~~Partnership ~~VARIABLE~~has ~~CONTRACT~~a ~~REAL~~policy ~~PROPERTY~~of ~~ACCOUNT~~investing at least 65% of its assets in direct ownership interests in income-producing real estate and participating mortgage loans.

~~December~~Note ~~31,~~2: ~~2014~~Summary of Significant Accounting Policies

~~Note~~A. Basis 5:of ~~Partnership Distributions~~ Accounting

~~For the year ended December 31, 2014, 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~~financial ~~Property~~statements ~~Account’s~~have ~~share~~been ofprepared ~~these~~in ~~distributions~~accordance ~~was~~with ~~$1.8~~accounting ~~million~~principles ~~each~~generally oraccepted ain ~~total of $3.6 million. During~~ the ~~year~~United ~~ended~~States ~~December 31,~~of ~~2013,~~America ~~the Partnership distributed $10~~(“U.~~0 million, which occurred on March 26, 2013 and December 30, 2013, for $5~~S.0 ~~million each~~GAAP”). The Real Property Account’s ~~share~~has ofevaluated ~~these~~subsequent ~~distributions~~events ~~was~~through ~~$1.8 million each or a total of $3.6 million. During~~ the ~~year~~date ~~ended~~these ~~December 31,~~financial ~~2012, the~~statements ~~Partnership~~were ~~distributed $5~~issued.~~0 million, which occurred on March 28, 2012. The Real Property Account’s share of this distribution was $1.8 million.~~

~~For~~The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the ~~years~~reported ~~ended~~amounts ~~December 31,~~of ~~2014,~~assets ~~2013,~~and liabilities and ~~2012,~~disclosure ~~there~~of ~~were~~contingent noassets ~~purchases~~and liabilities as of the ~~Partnership~~date byof the ~~Real~~financial ~~Property~~statements ~~Account~~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.

Certain prior year unit activity in Note 6: ~~Unit~~have ~~Activity~~been reclassified to conform to the current year’s presentation.

~~All~~B. Investment ~~products referred to~~ in ~~Note~~Partnership ~~1 for outstanding units at December 31, 2014, 2013 and 2012 were as follows:~~ Interest

2014
Company			Contract Owner
				PDISCO+			VIP			PVAL			PVAL$100,000+face value
Contributions:	542,788		Contributions:		8,976			13,550			912,028			802,497
Redemptions:	(1,099,159	)	Redemptions:		(85,306	)		(70,552	)		(1,168,595	)		(949,066	)
2013
Company			Contract Owner
				PDISCO+			VIP			PVAL			PVAL$100,000+face value
Contributions:	1,140,321		Contributions:		28,175			5,389			1,027,055			985,936
Redemptions:	(1,966,887)		Redemptions:		(67,183	)		(46,819	)		(1,175,498	)		(1,094,909	)
2012
Company			Contract Owner
				PDISCO+			VIP			PVAL			PVAL$100,000+face value
Contributions:	1,159,431		Contributions:		25,754			29,892			1,133,165			1,250,557
Redemptions:	(1,519,682)		Redemptions:		(33,637	)		(35,915	)		(1,413,242	)		(1,139,973	)

The investment in the Partnership is based on the Real Property Account’s proportionate interest of 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 42.2% or 1,910,381 shares and 42.0% or 1,954,048 shares, respectively. Properties owned by the Partnership are illiquid and their fair value is based on estimated fair value as discussed in the notes to the consolidated financial statements of the Partnership.

~~F-7~~C. Income Recognition

~~Table~~Net ofinvestment ~~Contents~~income or loss, and recognized and unrealized 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.

~~NOTES~~D. Equity TOof ~~THE~~The ~~FINANCIAL~~Prudential ~~STATEMENTS~~Insurance OFCompany of America

~~THE~~Prudential ~~PRUDENTIAL~~maintains ~~VARIABLE~~a ~~CONTRACT~~position ~~REAL~~in ~~PROPERTY~~the ~~ACCOUNT~~Real Property Account for liquidity purposes, including unit purchases and redemptions, Partnership share transactions, and expense processing. The position does not affect contract owners’ accounts or the related unit values.

There were no cash transactions at the Real Property Account level for the years ended December 31, 2015, 2014, and 2013 as all of the transactions are settled by Prudential on behalf of the Real Property Account through a redemption or an issuance of units. Therefore, no statement of cash flows is presented for the years ended December 31, 2015, 2014, and 2013.

~~Note 7: Financial Highlights~~ F-5

~~Prudential~~Table ~~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. Contents

~~The~~NOTES ~~following~~TO ~~table~~THE ~~was~~FINANCIAL ~~developed~~STATEMENTS by determining which products offered by Prudential 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. OF

	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		22,313	$	2.64710	-	$	3.05509	$	65,090		3.68	%		0.60	%	-	1.20	%		5.88	%	-	6.50	%
December 31, 2013		22,850	$	2.50018	-	$	2.86852	$	62,659		5.04	%		0.60	%	-	1.20	%		8.25	%	-	8.90	%
December 31, 2012		23,187	$	2.30961	-	$	2.63416	$	58,481		4.84	%		0.60	%	-	1.20	%		5.59	%	-	6.21	%
December 31, 2011		23,371	$	2.18743	-	$	2.48007	$	55,565		4.79	%		0.60	%	-	1.20	%		12.38	%	-	13.05	%
December 31, 2010		23,654	$	1.94643	-	$	2.19385	$	49,828		4.79	%		0.60	%	-	1.20	%		8.37	%	-	9.02	%

THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY ACCOUNT

~~Prudential~~December ~~also maintains a position in the Real Property Account~~31, 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 Prudential to purchase additional units in its account resulting in no impact to its net assets. 2015

	Units(000’s)		Net Assets(000’s)
December 31, 2014		4,959	$	14,003
December 31, 2013		5,515	$	14,646
December 31, 2012		6,341	$	15,493
December 31, 2011		6,702	$	15,476
December 31, 2010		8,655	$	17,719

Note 3: Taxes

~~(1)~~Prudential ~~This~~is ~~amount~~taxed ~~represents~~as a “life insurance company”, as defined by the ~~contract~~Internal ~~owner’s~~Revenue ~~proportionate~~Code. ~~share~~The results of operations of the ~~net~~Real ~~investment~~Property ~~income~~Account ~~from~~form ~~the~~a ~~underlying~~part ~~Partnership~~of ~~divided~~Prudential byFinancial’s ~~the~~consolidated ~~contract~~federal ~~owners~~tax ~~average~~return. ~~net~~Under ~~assets~~current offederal, state and local law, no federal, state or local income taxes are payable by the Real Property Account. ~~This~~As ~~ratio~~such, ~~excludes~~no ~~those~~provision ~~expenses,~~for ~~such~~the astax ~~mortality~~liability ~~risk~~has ~~and~~been ~~expense~~recorded ~~risk~~in ~~and~~these ~~administrative~~financial ~~expenses~~statements. ~~that~~Prudential ~~result~~management will review periodically the status of the policy in ~~direct~~the ~~reductions~~event of changes in the ~~unit~~tax ~~values~~law.

~~(2)~~Note ~~These~~4: ~~amounts~~Net ~~represent~~Contributions ~~the~~(Withdrawals) ~~annualized~~by ~~contract~~Contract expenses of the Real Property Account, consisting primarily of mortality and expense charges, for each period indicated. These ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying Partnership are excluded.Owners

Net contributions (3withdrawals) ~~These~~by ~~amounts~~contract ~~represent~~owners ~~the total return~~ for the ~~periods~~Real ~~indicated,~~Property ~~including~~Account ~~changes~~by inproduct ~~the value of the underlying Partnership, and reflect deductions~~ for ~~all items included in~~ the ~~expense~~years ~~ratio.~~ended ~~The~~December 31, ~~total~~2015, ~~return~~2014 ~~does~~and ~~not~~2013 ~~include~~were ~~any~~as ~~expense assessed through the redemption of units; inclusion of these expenses in the calculation would result in a reduction in the total return presented.~~follows:

F-8



December 31, 2015	VIP & PDISCO+			PVAL & PVAL $100,000+ face value			CVAL		TOTAL
Contract owner net payments	$	18,716		$	2,721,398		$	—	$	2,740,114
Policy loans	—			(1,107,759		)	—		(1,107,759		)
Policy loan repayments and interest	—			1,425,891			—		1,425,891
Surrenders, withdrawals and death benefits	(122,477		)	(2,718,901		)	—		(2,841,378		)
Net transfers from/(to) other subaccounts or fixed rate option	103,422			676,078			—		779,500
Administrative and other charges	(826		)	(1,664,127		)	—		(1,664,953		)
	$	(1,165	)	$	(667,420	)	$	—	$	(668,585	)

December 31, 2014	VIP & PDISCO+			PVAL & PVAL $100,000+ face value			CVAL		TOTAL
Contract owner net payments	$	28,400		$	2,723,767		$	—	$	2,752,167
Policy loans	—			(1,024,541		)	—		(1,024,541		)
Policy loan repayments and interest	—			1,121,325			—		1,121,325
Surrenders, withdrawals and death benefits	(329,352		)	(2,220,937		)	—		(2,550,289		)
Net transfers from/(to) other subaccounts or fixed rate option	(41,699		)	(104,694		)	—		(146,393		)
Administrative and other charges	(514		)	(1,632,516		)	—		(1,633,030		)
	$	(343,165	)	$	(1,137,596	)	$	—	$	(1,480,761	)

December 31, 2013	VIP & PDISCO+			PVAL & PVAL $100,000+ face value			CVAL		TOTAL
Contract owner net payments	$	1,231		$	2,837,353		$	—	$	2,838,584
Policy loans	—			(1,153,852		)	—		(1,153,852		)
Policy loan repayments and interest	—			1,240,964			—		1,240,964
Surrenders, withdrawals and death benefits	(212,815		)	(2,076,985		)	—		(2,289,800		)
Net transfers from/(to) other subaccounts or fixed rate option	23,009			199,338			—		222,347
Administrative and other charges	(595		)	(1,733,602		)	—		(1,734,197		)
	$	(189,170	)	$	(686,784	)	$	—	$	(875,954	)

~~Table of Contents~~F-6

~~NOTES~~Table TOof ~~THE FINANCIAL STATEMENTS OF~~ Contents

~~THE~~NOTES ~~PRUDENTIAL~~TO ~~VARIABLE~~THE ~~CONTRACT~~FINANCIAL ~~REAL~~STATEMENTS ~~PROPERTY ACCOUNT~~ OF

~~December~~THE ~~31,~~PRUDENTIAL ~~2014~~VARIABLE CONTRACT REAL PROPERTY ACCOUNT

~~Note~~December 7:31, ~~Financial Highlights: (continued)~~ 2015

~~Charges~~Note ~~and~~5: ~~Expenses~~Partnership Distributions

AFor the year ended December 31, 2015, the Partnership distributed a total of $5.0 ~~Mortality~~million, ~~Risk~~which occurred on March 30, 2015. The Real Property Account’s share of this distribution was $1.8 million. During the year ended December 31, 2014, the Partnership distributed $10.0 million, which occurred on March 26, 2014 and ~~Expense~~September 26, ~~Risk~~2014, ~~Charges~~for $5.0 million each. The Real Property Account’s share of these distributions was $1.8 million each or a total of $3.6 million. During the year ended December 31, 2013, the Partnership distributed $10.0 million, which occurred on March 26, 2013 and December 30, 2013, for $5.0 million each. The Real Property Account’s share of these distributions was $1.8 million each or a total of $3.6 million.

~~Mortality~~For ~~risk~~the ~~and~~years ~~expense~~ended ~~risk charges are determined daily using an effective annual rate of 1.2%~~December 31, ~~0.9%~~2015, ~~0.6%~~2014 and ~~1.2% for PDISCO+~~2013, ~~PVAL, PVAL~~there ~~$100,000~~were +no ~~Face~~purchases Value and VIP, respectively (for PDISCO+, the 1.2% includes a 0.20% administrative charge). Custom VAL (“CVAL”) used the same fees and charges as the VAL Face amount over $100,000. Mortality risk is the risk that life insurance contract owners may not live as long as estimated or annuitants may live longer than estimated and expense risk is the risk that the cost of ~~issuing and administering~~ the ~~policies~~Partnership ~~may exceed related charges~~ by ~~Prudential.~~the ~~The~~Real ~~mortality risk~~Property ~~and expense risk charges are assessed through reduction in unit values~~Account.

B.Note ~~Cost~~6: ofUnit ~~Insurance and Other Related Charges~~ Activity

~~Contract~~All ~~owner~~products ~~contributions~~referred ~~are subject~~ to ~~certain deductions prior to being invested~~ in ~~the~~Note ~~Real~~1 ~~Property Account. The deductions~~ for ~~PVAL and~~outstanding ~~PVAL~~units ~~$100,000~~at ~~+ Face Value are (1)~~December ~~state~~31, ~~premium~~2015, ~~taxes;~~2014 ~~(2) transaction costs which are deducted from each premium payment to cover premium collection~~ and ~~processing~~2013 ~~costs.~~were ~~Contracts~~as are subject to charges on each basic premium for assuming a guaranteed minimum death benefit risk. This charge compensates Prudential for the risk that an insured may die at a time when the death benefit exceeds the benefit that would have been payable in the absence of a minimum guarantee. These charges are assessed through the redemption of units. follows:

C. Deferred Sales Charge



December 31, 2015
Prudential			Contract Owner
				VIP & PDISCO+		PVAL & PVAL $100,000+ face value		CVAL
Contributions:	958,262		Contributions:	46,565		1,880,453		—
Redemptions:	(1,127,265	)	Redemptions:	(48,062	)	(2,120,055	)	—
December 31, 2014
Prudential			Contract Owner
				VIP & PDISCO+		PVAL & PVAL $100,000+ face value		CVAL
Contributions:	542,788		Contributions:	22,526		1,714,525		—
Redemptions:	(1,099,159	)	Redemptions:	(155,858	)	(2,117,661	)	—
December 31, 2013
Prudential			Contract Owner
				VIP & PDISCO+		PVAL & PVAL $100,000+ face value		CVAL
Contributions:	1,140,321		Contributions:	33,564		2,012,991		—
Redemptions:	(1,966,887	)	Redemptions:	(114,002	)	(2,270,407	)	—

ANote ~~deferred~~7: ~~sales~~Financial charge is imposed upon the withdrawals of certain purchase payments to compensate Prudential for sales and other marketing expenses for PDISCO+ and VIP. The amount of any sales charge will depend on the amount withdrawn and the number of contract years that have elapsed since the contract owner or annuitant made the purchase payments deemed to be withdrawn. As the amount of time that has elapsed since a given purchase payment made increases, the sales charge applicable to that purchase payment generally decreases. No sales charge is made against the withdrawal of investment income. No sales charge is imposed upon death benefit payments or upon transfers made between subaccounts. This deferred sales charge is assessed through the redemption of units. Highlights

DPrudential sells a number of variable annuity and variable life insurance products. ~~Partial~~These ~~Withdrawal~~products ~~Charge~~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.

AThe ~~charge~~following istable ~~imposed~~was developed by ~~Prudential~~determining onwhich ~~partial~~products ~~withdrawals~~offered ofby ~~the~~Prudential ~~cash~~have ~~surrender~~the ~~value~~lowest ~~for PVAL~~ and ~~PVAL~~highest ~~$100,000~~total +expense ~~Face~~ratio ~~Value.~~and Areflects ~~charge~~contract ~~equal~~owner ~~to the~~units ~~lesser~~only. ofThe ~~$15~~table ormay 2%not ~~will~~reflect bethe ~~made~~minimum inand ~~connection~~maximum ~~with~~contract ~~each~~charges ~~partial~~offered ~~withdrawal~~by ofPrudential ~~the~~as ~~cash~~contract ~~surrender~~owners ~~value~~may ofnot ahave ~~contract.~~selected ~~This~~all ~~charge~~available isand ~~assessed~~applicable ~~through~~products ~~the~~as ~~redemption~~discussed ofin ~~units.~~Note 1.

E. Annual Maintenance Charge



	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	22,071	$2.85437	—	$	3.31402	$	69,745	3.16	%	0.60%	—	1.20	%	7.83%	—	8.48	%
December 31, 2014	22,313	$2.64710	—	$	3.05509	$	65,090	3.68	%	0.60%	—	1.20	%	5.88%	—	6.50	%
December 31, 2013	22,850	$2.50018	—	$	2.86852	$	62,659	5.04	%	0.60%	—	1.20	%	8.25%	—	8.90	%
December 31, 2012	23,187	$2.30961	—	$	2.63416	$	58,481	4.84	%	0.60%	—	1.20	%	5.59%	—	6.21	%
December 31, 2011	23,371	$2.18743	—	$	2.48007	$	55,565	4.79	%	0.60%	—	1.20	%	12.38%	—	13.05	%

An annual maintenance charge, applicable to PDISCO+ and VIP, of $30 will be deducted if and only if the contract fund is less than $10,000 on a contract anniversary or at the time a full withdrawal is effected, including a withdrawal to effect an annuity. The charge is made by reducing accumulation units credited to a contract owner’s account. F-7

~~Note~~Table 8:of ~~Related Party~~ Contents

~~The~~NOTES ~~Real~~TO ~~Property~~THE ~~Account~~FINANCIAL ~~has~~STATEMENTS 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. OF

~~Prudential and~~THE ~~its~~PRUDENTIAL ~~affiliates~~VARIABLE ~~perform~~CONTRACT ~~various~~REAL ~~services~~PROPERTY 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, document preparation, postage, fund transfer agency and various other record keeping and customer service functions. ACCOUNT

~~F-9~~December 31, 2015

~~Table~~Note of7: ~~Contents~~Financial Highlights (continued)

~~NOTES~~(1) TOThis ~~THE~~amount ~~FINANCIAL~~represents ~~STATEMENTS~~the OFcontract 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. This ratio excludes those expenses, such as mortality risk and expense risk and administrative expenses that result in direct reductions in the unit values.

~~THE~~(2) ~~PRUDENTIAL~~These ~~VARIABLE~~amounts ~~CONTRACT~~represent ~~REAL~~the ~~PROPERTY~~annualized ~~ACCOUNT~~contract expenses of the Real Property Account, consisting primarily of mortality and expense charges, for each period indicated. These ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying Partnership are excluded.

~~December~~(3) 31These amounts represent the total return for the periods indicated, ~~2014~~including changes in the value of the underlying Partnership, and reflect deductions for 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 would result in a reduction in the total return presented.

~~Note~~Prudential 9:also ~~Fair~~maintains ~~Value~~a ~~Disclosure~~position 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 Prudential. Charges for mortality risk and expense risk and administrative expenses are used by Prudential to purchase additional units in its account resulting in no impact to its net assets.

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



	Units (000’s)	Net Assets (000’s)
December 31, 2015	4,790	$14,635
December 31, 2014	4,959	$14,003
December 31, 2013	5,515	$14,646
December 31, 2012	6,341	$15,493
December 31, 2011	6,702	$15,476

~~Level~~Charges 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.~~ Expenses

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 dataA. Mortality ~~The~~Risk ~~Real~~and ~~Property~~Expense ~~Account~~Risk ~~had no Level 2 assets or liabilities.~~ Charges

~~Level~~Mortality 3risk –and ~~Fair~~expense ~~value~~risk ischarges ~~based~~are ondetermined ~~significant~~daily ~~unobservable~~using ~~inputs~~an ~~for~~effective ~~the~~annual ~~asset~~rate orof ~~liability~~1.2%, ~~These~~0.9%, ~~inputs~~0.6% ~~reflect~~and ~~the~~1.2% ~~Real~~for ~~Property Account’s~~PDISCO+, ~~own~~PVAL, ~~assumptions~~PVAL ~~about~~$100,000 ~~the~~+ ~~assumptions~~Face ~~that~~Value ~~market~~and ~~participants~~VIP, ~~would~~respectively ~~use~~(for inPDISCO+, ~~pricing~~ the ~~asset~~1.2% orincludes ~~liability~~a 0.20% ~~The~~administrative ~~Real~~charge). ~~Property~~CVAL ~~Account’s~~used ~~Level~~the 3same ~~assets~~fees ~~consist~~and ofcharges as the ~~investment~~PVAL in$100,000 ~~the~~+ ~~Partnership~~Face ~~which~~Value. isMortality ~~based~~risk onis the ~~Real Property~~risk ~~Account’s~~that ~~proportionate~~life ~~interest~~insurance ofcontract ~~the~~owners ~~Partnership’s~~may ~~fair~~not ~~value,~~live ~~which~~as ~~approximates~~long ~~the~~as ~~Partnership’s~~estimated ~~net~~or ~~asset~~annuitants ~~value.~~may ~~Properties~~live ~~owned~~longer bythan ~~the~~estimated ~~Partnership are illiquid~~ and ~~fair~~expense ~~value~~risk is ~~based~~the onrisk ~~estimates~~that ~~from~~the ~~property appraisal~~cost ~~reports~~of ~~prepared~~issuing byand ~~independent~~administering ~~real estate appraisers as discussed in~~ the ~~notes~~contracts tomay ~~the~~exceed ~~Partnership’s~~related ~~audited~~charges ~~consolidated~~by ~~financial statements~~Prudential. ~~All~~The ofmortality ~~the~~risk ~~Real~~and ~~Property~~expense ~~Account’s~~risk ~~assets~~charges ~~were~~are ~~classified~~assessed asthrough ~~Level~~reduction 3.in unit values.

~~The purpose of an appraisal is to estimate the fair value of real estate as of a specific date~~B. Cost ~~The estimate~~ of ~~fair~~Insurance 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~~Other ~~and~~Related 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. Charges

~~During~~Contract owner contributions are subject to certain deductions prior to being invested in the ~~years~~Real ~~ended~~Property ~~December 31,~~Account. ~~2014~~The deductions for PVAL and ~~2013~~PVAL $100,000 ~~there~~+ ~~were~~Face noValue ~~transfers~~are ~~between~~(1) taxes ~~Level~~attributable 1,to ~~Level~~premiums; and (2,) transaction costs which are deducted from each premium payment to cover premium collection and ~~Level~~processing 3costs. Contracts are subject to charges on each basic premium for assuming a guaranteed minimum death benefit risk. This charge compensates Prudential for the risk that an insured may die at a time when the death benefit exceeds the benefit that would have been payable in the absence of a minimum guarantee. These charges are assessed through the redemption of units.

~~F-10~~C. Deferred Sales Charge

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

~~NOTES TO THE FINANCIAL STATEMENTS OF~~ F-8

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

~~December~~NOTES ~~31,~~TO ~~2014~~THE FINANCIAL STATEMENTS OF

InTHE ~~general,~~PRUDENTIAL ~~the~~VARIABLE ~~input~~CONTRACT ~~values~~REAL inPROPERTY 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. ACCOUNT

~~Table~~December 131, ~~below summarizes the assets measured at fair value on a recurring basis and their respective level in the fair value hierarchy.~~ 2015

~~Table~~Note 17: Financial Highlights (continued)

	($ in 000’s)
	Fair value measurements at December 31, 2014
Assets:	Amounts measuredat fair valueDecember 31, 2014		Level 1		Level 2		Level 3
Investment in The Prudential Variable Contract Real Property Partnership	$	79,093	$	—	$	—	$	79,093
	($ in 000’s)
	Fair value measurements at December 31, 2013
Assets:	Amounts measuredat fair valueDecember 31, 2013		Level 1		Level 2		Level 3
Investment in The Prudential Variable Contract Real Property Partnership	$	77,305	$	—	$	—	$	77,305

D. Partial Withdrawal Charge

~~F-11~~A charge is imposed by Prudential on partial withdrawals of the cash surrender value for PVAL and PVAL $100,000 + Face Value. A charge equal to the lesser of $15 or 2% will be made in connection with each partial withdrawal of the cash surrender value of a contract. This charge is assessed through the redemption of units.

~~Table~~E. Annual ofMaintenance ~~Contents~~Charge

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

~~THE~~Note ~~PRUDENTIAL~~8: ~~VARIABLE~~Related ~~CONTRACT REAL PROPERTY ACCOUNT~~ Party

~~December~~The 31Real Property Account 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.

~~Table~~Prudential 2and ~~below~~its ~~provides~~affiliates aperform ~~reconciliation~~various services on behalf of the ~~beginning~~Partnership ~~and~~in ~~ending~~which ~~balances~~the ~~for~~Real ~~all~~Property ~~assets measured~~Account atinvests ~~fair~~and ~~value~~may onreceive afees ~~recurring~~for ~~basis~~the ~~using~~services ~~significant~~performed. ~~unobservable~~These ~~inputs~~services ~~(Level~~include, 3)among ~~for~~other ~~the~~things, ~~years~~shareholder ~~ended~~communications, ~~December 31~~postage, ~~2014~~transfer agency and ~~2013.~~various other record keeping and customer service functions.

~~Table~~Note 29: Fair Value Measurements

	($ in 000’s)
	2014
Beginning balance @ 1/1/14	$	77,305
Total gains or losses (recognized/unrealized) included in earnings (or changes in net assets) from Partnership operations		2,519
Net investment income from Partnership operations		2,859
Acquisitions, issuances, and contributions		—
Dispositions, settlements, and distributions		(3,590	)
Ending balance @ 12/31/14	$	79,093
Unrealized gains (losses) for the year relating to Level 3 assets still held at the reporting date	$	2,320
	($ in 000’s)
	2013
Beginning balance @ 1/1/13	$	73,974
Total gains or losses (recognized/unrealized) included in earnings (or changes in net assets) from Partnership operations		3,125
Net investment income from Partnership operations		3,788
Acquisitions, issuances, and contributions		—
Dispositions, settlements, and distributions		(3,582	)
Ending balance @ 12/31/13	$	77,305
Unrealized gains (losses) for the year relating to Level 3 assets still held at the reporting date	$	3,065

~~F-12~~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.

~~Table~~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 ~~Contents~~the asset or liability through corroboration with observable market data. The Real Property Account had no Level 2 assets or liabilities.

~~Report~~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 ~~Independent~~the ~~Registered~~investment ~~Public~~in ~~Accounting~~the ~~Firm~~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.

ToThe purpose of an appraisal is to estimate the ~~Partners~~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.

~~The Prudential~~During ~~Variable~~the ~~Contract~~years ~~Real~~ended ~~Property~~December 31, ~~Partnership:~~2015 and 2014, there were no transfers between Level 1, Level 2, and Level 3.

In ~~our opinion~~general, the ~~accompanying~~input ~~consolidated~~values ~~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~~appraisal ~~position~~process ofare ~~The Prudential Variable Contract Real Property Partnership (the “Partnership”) at December 31~~unobservable, ~~2014~~therefore ~~and~~unless ~~2013,~~indicated ~~the results of its operations~~otherwise, the ~~changes~~underlying ininvestments ~~its net assets and its cash flows for each of the three years~~ in the ~~period~~Partnership ~~ended December 31,~~are ~~2014,~~classified inas ~~conformity~~Level ~~with~~3 ~~accounting~~under ~~principles generally accepted in~~ the ~~United~~fair ~~States~~value ~~of America~~hierarchy. ~~These financial statements are the responsibility of the management of~~ The ~~Prudential~~inputs ~~Insurance~~or ~~Company~~methodology ofused ~~America.~~for ~~Our responsibility~~valuing issecurities toare ~~express~~not an ~~opinion~~indication ~~on these financial statements based on our audits. We conducted our audits~~ of ~~these~~the ~~financial~~risk ~~statements~~associated ~~in accordance~~ with ~~the~~investing 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~~those ~~financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation~~securities. ~~We believe that our audits provide a reasonable basis for our opinion.~~

~~/s/ PricewaterhouseCoopers LLP New York, New York March 12, 2015~~F-9

~~F-13~~Table of Contents

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

~~Report~~THE ofPRUDENTIAL ~~Independent~~VARIABLE ~~Registered~~CONTRACT ~~Public~~REAL ~~Accounting~~PROPERTY ~~Firm on~~ ACCOUNT

~~Financial~~December ~~Statement~~31, ~~Schedules~~ 2015

ToNote ~~the~~9: ~~Partners~~Fair ofValue Measurements (continued)

~~The Prudential~~Table ~~Variable~~1 ~~Contract~~below ~~Real~~summarizes ~~Property~~the ~~Partnership:~~assets measured at fair value on a recurring basis and their respective level in the fair value hierarchy.

Our audits of the consolidated financial statements referred to in our report dated March 12, 2015 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.



	($ 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	$	84,380	$	—	$	—	$	84,380

	($ 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	$	79,093	$	—	$	—	$	79,093

~~/s/~~Table ~~PricewaterhouseCoopers~~2 ~~LLP~~below ~~New~~provides ~~York,~~a ~~New~~reconciliation ~~York~~of ~~March~~the 12beginning 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, 2015 and 2014.

F-14



	($ in 000’s)
	December 31, 2015
Beginning balance, January 1, 2015	$	79,093
Net recognized and unrealized gains (losses) included in earnings (or changes in net assets) from Partnership operations	4,530
Net investment income from Partnership operations	2,557
Acquisitions, issuances and contributions	—
Dispositions, settlements and distributions	(1,800		)
Ending balance, December 31, 2015	$	84,380
Unrealized gains (losses) for the year relating to Level 3 assets still held at the reporting date	$	4,477

	($ in 000’s)
	December 31, 2014
Beginning balance, January 1, 2014	$	77,305
Net recognized and unrealized gains (losses) included in earnings (or changes in net assets) from Partnership operations	2,519
Net investment income from Partnership operations	2,859
Acquisitions, issuances and contributions	—
Dispositions, settlements and distributions	(3,590		)
Ending balance, December 31, 2014	$	79,093
Unrealized gains (losses) for the year relating to Level 3 assets still held at the reporting date	$	2,320

~~Table of Contents~~F-10

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

~~CONSOLIDATED~~NOTES ~~STATEMENTS~~TO OFTHE ~~ASSETS~~FINANCIAL ~~AND~~STATEMENTS ~~LIABILITIES~~ OF

	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 ACCOUNT

~~The~~December ~~accompanying~~31, ~~notes are an integral part of these consolidated financial statements.~~ 2015

~~F-15~~Note 10: Subsequent Events

~~Table~~On January 21, 2016, the Partnership sold an office property in Lisle, Illinois. For further information, see Note 13 of ~~Contents~~the Partnership's consolidated financial statements.

~~THE~~On ~~PRUDENTIAL~~January ~~VARIABLE~~28, ~~CONTRACT~~2016, ~~REAL~~the ~~PROPERTY~~Partnership ~~PARTNERSHIP~~leveraged two apartment complexes located in Austin, Texas and Charlotte, North Carolina. For further information, see Note 13 of the Partnership's consolidated financial statements.

~~CONSOLIDATED STATEMENTS OF OPERATIONS~~ F-11

	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

Table of Contents

~~The~~Report ~~accompanying notes are an integral part~~ of ~~these~~Independent ~~consolidated~~Registered ~~financial~~Public ~~statements.~~Accounting Firm

~~F-16~~To the General Partners of

~~Table~~The ofPrudential ~~Contents~~Variable Contract Real Property Partnership:

~~THE~~In ~~PRUDENTIAL~~our ~~VARIABLE~~opinion, ~~CONTRACT~~the ~~REAL~~accompanying ~~PROPERTY~~consolidated ~~PARTNERSHIP~~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 opinion on these financial statements based on our audits. We conducted our audits of these 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.

~~CONSOLIDATED~~/s/ ~~STATEMENTS~~PricewaterhouseCoopers OFLLP ~~CHANGES~~New INYork, ~~NET~~New ~~ASSETS~~York March 10, 2016

	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

F-12

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

~~F-17~~Report of Independent Registered Public Accounting Firm on

~~Table~~Financial ofStatement ~~Contents~~Schedules

~~THE~~To ~~PRUDENTIAL~~the ~~VARIABLE~~Partners ~~CONTRACT~~of ~~REAL PROPERTY PARTNERSHIP~~

~~CONSOLIDATED~~The ~~STATEMENTS~~Prudential OFVariable ~~CASH~~Contract ~~FLOWS~~Real Property Partnership:

	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

Our audits of 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/ ~~accompanying~~PricewaterhouseCoopers ~~notes~~LLP ~~are~~New anYork, ~~integral~~New ~~part~~York ofMarch ~~these~~10, ~~consolidated financial statements.~~ 2016

F-18 13

Table of Contents

THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

CONSOLIDATED ~~SCHEDULE~~STATEMENTS OF ~~INVESTMENTS~~ASSETS AND LIABILITIES

					2014 Total Rentable
	December 31, 2015			December 31, 2014
					Square Feet
ASSETS
		December 31,			Unless Otherwise	December 31,2014				December 31, 2013
REAL ESTATE INVESTMENTS - At estimated fair value:
Property Name		2014Ownership	City, State		Indicated(Unaudited)	Cost		Estimated FairValue		Cost		Estimated FairValue
Real estate and improvements (cost: 12/31/2015 - $255,844,718; 12/31/2014 -$240,778,075)	$	264,925,433		$	235,689,701
OFFICES
CASH AND CASH EQUIVALENTS	14,423,867			32,308,210
750 Warrenville		WO	Lisle, IL		92,209	$	27,964,168	$	6,200,000	$	27,311,648	$	6,400,000
OTHER ASSETS, NET	3,497,097			2,947,752
Summit @ Cornell Oaks		WO	Beaverton , OR		72,109		14,072,787		12,500,000		13,848,773		10,300,000
Total assets	$	282,846,397		$	270,945,663
			Offices % as of 12/31/14		10%		42,036,955		18,700,000		41,160,421		16,700,000
LIABILITIES & PARTNERS’ EQUITY
APARTMENTS
INVESTMENT LEVEL DEBT	$	66,598,081		$	70,006,898
700 Broadway		CJV	Seattle, WA		59 Units		22,897,489		26,100,000		22,666,478		24,800,000
ACCOUNTS PAYABLE AND ACCRUED EXPENSES	2,550,010			1,663,710
Broadstone Crossing		WO	Austin, TX		225 Units		23,070,315		27,426,986		22,984,775		27,300,000
DUE TO AFFILIATES	745,769			666,963
Vantage Park		CJV	Seattle, WA		91 Units		21,640,623		25,900,000		21,156,575		24,200,000
OTHER LIABILITIES	809,256			934,145
The Reserve At Waterford Lakes		WO	Charlotte, NC		140 Units		14,676,752		15,000,000		14,409,301		13,700,000
Total liabilities	70,703,116			73,271,716
			Apartments % as of 12/31/14		50%		82,285,179		94,426,986		81,217,129		90,000,000
COMMITMENTS AND CONTINGENCIES
RETAIL
NET ASSETS, REPRESENTING PARTNERS’ EQUITY:
Hampton Towne Center		WO	Hampton, VA		174,540		18,743,265		20,100,000		18,562,779		18,900,000
GENERAL PARTNERS’ CONTROLLING INTEREST	200,068,466			188,251,636
White Marlin Mall		CJV	Ocean City, MD		197,098		25,610,596		32,600,000		25,430,335		31,900,000
NONCONTROLLING INTEREST	12,074,815			9,422,311
Westminster Crossing East, LLC		CJV	Westminster, MD		89,890		15,220,559		18,900,000		15,156,172		17,700,000
Total partners' equity	212,143,281			197,673,947
Publix at Eagle Landing		WO	North Fort Myers, FL		57,840		8,380,272		8,400,000		—		—
Total liabilities and partners’ equity	$	282,846,397		$	270,945,663
Harnett Crossing		WO	Dunn, NC		189,143		8,469,209		3,980,000		6,756,713		3,500,000
NUMBER OF SHARES OUTSTANDING AT END OF PERIOD	4,529,591			4,650,878
Peachtree Corners Market		WO	Norcross, GA		42,185		19,282,716		19,282,715
GENERAL PARTNERS' SHARE VALUE AT END OF PERIOD	$	44.17		$	40.48
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

WOThe -accompanying ~~Wholly~~notes ~~Owned~~are ~~Investment~~an integral part of these consolidated financial statements.

~~CJV~~ F- ~~Consolidated Joint Venture~~ 14

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

~~F-19~~THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

~~Table~~CONSOLIDATED ofSTATEMENTS ~~Contents~~OF OPERATIONS

THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP



	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

~~CONSOLIDATED~~The ~~SCHEDULE~~accompanying OFnotes ~~INVESTMENTS~~are an integral part of these consolidated financial statements.

	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

F-15

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

~~F-20~~THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP

~~Table~~CONSOLIDATED ofSTATEMENTS ~~Contents~~OF CHANGES IN NET ASSETS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF



	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

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

~~December 31, 2014~~ F-16

~~Note 1:~~Table ~~Organization~~of Contents

OnTHE ~~April 29,~~PRUDENTIAL ~~1988,~~VARIABLE ~~The~~CONTRACT ~~Prudential~~REAL ~~Variable~~PROPERTY Contract Real Property Partnership (the “Partnership”), a general partnership organized under New Jersey law, was formed through an agreement among The Prudential Insurance Company of America (“Prudential”), an indirect wholly-owned subsidiary of Prudential Financial, Inc. (“Prudential Financial”), Pruco Life Insurance Company (“Pruco Life”), a wholly-owned subsidiary of Prudential, and Pruco Life Insurance Company of New Jersey (“Pruco Life of New Jersey”), a wholly-owned subsidiary of Pruco Life. The Partnership was established as a means by which assets allocated to the real estate investment option under certain variable life insurance and variable annuity contracts issued by the respective companies could be invested in a commingled pool. The partners in the Partnership are Prudential, Pruco Life and Pruco Life of New Jersey (collectively the “General Partners”). The General Partners may make additional daily cash contributions to or withdrawals from the Partnership in accordance with the provisions of the Partnership Agreement. PARTNERSHIP

~~The~~CONSOLIDATED ~~Partnership’s~~STATEMENTS ~~policy~~OF isCASH ~~to invest at least 65% of its assets in direct ownership interests in income-producing real estate and participating mortgage loans.~~ FLOWS

The per share net asset value of the Partnership’s shares is determined daily, consistent with the Partnership Agreement. On each day during which the New York Stock Exchange is open for business, the net asset value of the Partnership is estimated using the estimated fair value of its assets, principally as described in Notes 2A, 2B and 2D below, reduced by any liabilities of the Partnership. The periodic adjustments to property values described in Notes 2A, 2B and 2D below and other adjustments to previous estimates are made on a prospective basis. There can be no assurance that all such adjustments to estimates will be made timely.



	Years Ended December 31,
	2015			2014			2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net increase (decrease) in net assets resulting from operations	$	19,433,224		$	14,210,684		$	18,661,691
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities
Net recognized and unrealized loss (gain)	(12,722,180		)	(6,735,778		)	(9,086,821		)
Amortization of discount on investment level debt	—			—			2,273
Amortization of deferred financing costs	60,534			45,593			38,673
(Reversal) Provision for allowance for doubtful accounts	26,224			97,225			(10,783		)
(Increase) decrease in:
Other assets	(958,604		)	1,224,699			(783,751		)
Increase (decrease) in:
Accounts payable and accrued expenses	676,114			(1,179,964		)	54,629
Due to affiliates	78,806			17,038			(31,184		)
Other liabilities	(267,370		)	110,081			(19,084		)
Net cash flows provided by (used in) operating activities	6,326,748			7,789,578			8,825,643
CASH FLOWS FROM INVESTING ACTIVITIES:
Net proceeds from real estate investments sold

Filing Compare · PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY ACCOUNT