The Prudential Series Fund

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF
THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP
For Years Ended December 31, 2008, 2007, and 2006
Note 5: Fair Value Measurements (continued)
Table 1 below summarizes the assets measured at fair value on a recurring basis and their respective position in the fair value
hierarchy.
Table 1
(in 000's)
Fair value measurements at December 31, 2008 using
Assets:
Amounts
measured at
fair value
12/31/2008
Quoted prices in
active markets for
identical assets
(level 1)
Significant other
observable
inputs (level 2)
Significant
unobservable inputs
(level 3)
Real estate and improvements $ 221,196 $ - $ - $
221,196
Real estate partnerships and
preferred equity investments 11,797 - - 11,797
Total $ 232,993 $ - $ - $
232,993
As required under SFAS 157, table 2 below present a reconciliation of the beginning and ending balances for all assets measured
at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31, 2008.
Table 2
(in 000's)
Fair value measurements using significant unobservable inputs
(Level 3)
Real estate and
partnerships and
Real estate and preferred equity
improvements investments Total
Beginning balance @ 1/1/08 $ 254,394 $ 14,524 $ 268,918
Net gains (losses) realized/unrealized
included in earnings (or changes in net assets) (43,134) (2,527) (45,661)
Equity income (losses)/interest income - 994 994
Acquisitions/issuances/contributions 9,936 - 9,936
Dispositions/settlements/distributions - (1,194) (1,194)
Ending balance @ 12/31/08 $ 221,196 $ 11,797 $ 232,993
Unrealized gains (losses) for the period relating
to level 3 assets still held at the reporting date $ (43,134) $ (2,527) $ (45,661)
B-13 Real Property