The Prudential Series Fund

THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP
CONSOLIDATED STATEMENTS OF OPERATIONS
Year Ended December 31,
2008 2007 2006
INVESTMENT INCOME:
Revenue from real estate and improvements $30,723,626 $29,094,968 $25,460,860
Equity in income of real estate partnerships 994,333 1,136,936 1,181,772
Interest and equity income on mortgage
and other loans receivable - - 125,510
Interest on short-term investments 406,431 1,468,159 1,855,345
Total investment income 32,124,390 31,700,063 28,623,487
INVESTMENT EXPENSES:
Operating 7,193,577 6,954,999 6,355,543
Investment management fee 3,447,030 3,380,090 3,075,176
Real estate taxes 2,957,947 2,466,704 2,069,169
Administrative 5,927,773 4,056,557 3,923,413
Interest expense 1,970,462 2,019,937 1,814,686
Minority interest (510,583) 158,196 223,772
Total investment expenses 20,986,206 19,036,483 17,461,759
NET INVESTMENT INCOME 11,138,184 12,663,580 11,161,728
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net proceeds from real estate investments sold - 18,353,122 67,770
Less: Cost of real estate investments sold - 19,063,985 -
Gain (loss) realized from real estate investments sold - (710,863) 67,770
Less: Reversal of prior periods' unrealized
gain (loss) on real estate investments sold - (1,380,344) -
Net gain (loss) recognized on real estate investments sold - 669,481 67,770
Unrealized gain (loss) on investments:
Change in unrealized gain (loss) on real estate investments (45,661,694) 5,620,864 20,294,808
Less: Minority interest in unrealized gain (loss) (1,428,059) 836,750 2,010,573
Net unrealized gain (loss) on real estate investments (44,233,635) 4,784,114 18,284,235
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON REAL ESTATE INVESTMENTS (44,233,635) 5,453,595 18,352,005
INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS ($33,095,451) $18,117,175 $29,513,733
The accompanying notes are an integral part of these consolidated financial statements.
B-2 Real Property