Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2021 | |
Cover [Abstract] | |
Document Type | S-1 |
Entity Registrant Name | THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY ACCOUNT |
Entity Incorporation, State or Country Code | NJ |
Entity Tax Identification Number | 22-1211670 |
Entity Address, Address Line One | 751 Broad Street |
Entity Address, City or Town | Newark |
Entity Address, State or Province | NJ |
Entity Address, Postal Zip Code | 07102 |
City Area Code | 973 |
Local Phone Number | 802-6000 |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Amendment Flag | false |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Entity Central Index Key | 0000846581 |
STATEMENTS OF NET ASSETS
STATEMENTS OF NET ASSETS - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Liquidation Basis | ||
ASSETS | ||
Net Assets | $ 85,892,497 | |
Net Assets, representing: | ||
Equity of contract owners | 51,979,417 | |
Equity of The Prudential Insurance Company of America | $ 33,913,080 | |
Portfolio shares held | 1,838,524 | |
Portfolio net asset value per share | $ 46.72 | |
Contract owner units outstanding | 16,323,516 | |
Liquidation Basis | At net realizable value | ||
ASSETS | ||
Investment in The Prudential Variable Contract Real Property Partnership | $ 85,892,497 | |
Going Concern Basis | ||
ASSETS | ||
Investment in The Prudential Variable Contract Real Property Partnership | $ 82,993,691 | |
Net Assets | 82,993,691 | |
Net Assets, representing: | ||
Equity of contract owners | 56,909,333 | |
Equity of The Prudential Insurance Company of America | $ 26,084,358 | |
Portfolio shares held | 1,838,524 | |
Portfolio net asset value per share | $ 45.14 | |
Contract owner units outstanding | 18,328,956 |
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS - Going Concern Basis - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
INVESTMENT INCOME | |||
Net investment income allocated from The Prudential Variable Contract Real Property Partnership | $ 348,085 | $ 2,077,073 | $ 2,584,242 |
EXPENSES | |||
Charges for mortality and expense risk, and for administration | (107,316) | (492,747) | (537,831) |
NET INVESTMENT INCOME | 240,769 | 1,584,326 | 2,046,411 |
NET RECOGNIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | |||
Net unrealized appreciation (depreciation) on investments allocated from The Prudential Variable Contract Real Property Partnership | (813,954) | (9,151,806) | (11,069) |
Net recognized gain (loss) on investments allocated from The Prudential Variable Contract Real Property Partnership | 180,236 | (5,510,754) | 0 |
NET GAIN (LOSS) ON INVESTMENTS | (633,718) | (14,662,560) | (11,069) |
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ (392,949) | $ (13,078,234) | $ 2,035,342 |
STATEMENTS OF CHANGES IN NET AS
STATEMENTS OF CHANGES IN NET ASSETS - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Liquidation Basis | ||||
CAPITAL TRANSACTIONS | ||||
Net contributions (withdrawals) by contract owners | $ (4,911,656) | |||
Net contributions (withdrawals) by The Prudential Insurance Company of America | 4,911,656 | |||
NET ASSETS | ||||
Beginning of year | 79,446,160 | |||
End of year | $ 79,446,160 | 85,892,497 | ||
CHANGES IN NET ASSETS IN LIQUIDATION: | ||||
Change in net realizable value of the investment in The Prudential Variable Contract Real Property Partnership | 6,446,337 | |||
CHANGES IN NET ASSETS IN LIQUIDATION | 6,446,337 | |||
Going Concern Basis | ||||
OPERATIONS | ||||
Net investment income | 240,769 | $ 1,584,326 | $ 2,046,411 | |
Net unrealized appreciation (depreciation) on investments allocated from The Prudential Variable Contract Real Property Partnership | (813,954) | (9,151,806) | (11,069) | |
Net recognized gain (loss) on investments allocated from The Prudential Variable Contract Real Property Partnership | 180,236 | (5,510,754) | 0 | |
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | (392,949) | (13,078,234) | 2,035,342 | |
CAPITAL TRANSACTIONS | ||||
Net contributions (withdrawals) by contract owners | (1,158,602) | (2,487,822) | (3,439,649) | |
Net contributions (withdrawals) by The Prudential Insurance Company of America | 1,265,918 | 2,980,568 | 3,977,480 | |
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL TRANSACTIONS | 107,316 | 492,746 | 537,831 | |
TOTAL INCREASE (DECREASE) IN NET ASSETS | (285,633) | (12,585,488) | 2,573,173 | |
NET ASSETS | ||||
Beginning of year | 82,993,691 | $ 82,708,058 | 95,579,179 | 93,006,006 |
End of year | $ 82,708,058 | $ 82,993,691 | $ 95,579,179 |
General
General | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General The 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 with the Securities and Exchange Commission (“SEC”) 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”). The assets of the Real Property Account are invested in The Prudential Variable Contract Real Property Partnership (the “Partnership”). The Partnership is the investment vehicle for assets allocated to the real estate investment option under certain variable life insurance and variable annuity contracts. The Real Property Account, along with Pruco Life Variable Contract Real Property Account and Pruco Life of New Jersey Variable Contract Real Property Account, are the sole investors in the Partnership. The General Partners of the Partnership are Prudential, 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. These financial statements should be read in conjunction with the accompanying audited consolidated financial statements of the Partnership. The Partnership has a policy of investing at least 65% of its assets in direct ownership interests in income-producing real estate and participating mortgage loans. COVID-19 - Since the first quarter of 2020, the novel coronavirus (“COVID-19”) has resulted in extreme stress and disruption in the global economy and financial markets. While the markets have rebounded, the pandemic has adversely impacted, and may continue to adversely impact, the financial performance of the Partnership in which the Real Property Account invests. Due to the highly uncertain nature of these conditions, it is not possible to estimate the ultimate impacts at this time. Plan of Liquidation of Real Property Account Effective February 22, 2021, the Real Property Account closed to new investments. On March 31, 2021, Prudential, after obtaining regulatory approvals, filed with the SEC their notice of liquidation to liquidate the Real Property Account, and along with Pruco Life and Pruco Life of New Jersey to liquidate the Partnership on February 22, 2022 (the “ |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies A. Basis of Accounting The financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). Liquidation Basis of Accounting As a result of the filing of the Plan of Liquidation by Prudential, it was determined that liquidation was imminent and the Real Property Account’s basis of accounting transitioned effective April 1, 2021 from the going concern basis of accounting (“Going Concern Basis) to liquidation basis of accounting (“Liquidation Basis of Accounting”) in accordance with U.S. GAAP. Liquidation Basis of Accounting requires the Real Property Account’s assets to be measured at the estimated amounts of consideration the Real Property Account expects to collect in settling or disposing of its assets, and liabilities are to be measured at the estimated amounts at which the liabilities are expected to be settled. Actual costs and income, such as charges for mortality and expense risk and administrative expenses, may differ from amounts reflected in the financial statements because of the inherent uncertainty in estimating future events. Charges for mortality and expense risk and administrative expenses are used by Prudential to purchase additional investments in its account resulting in no impact to its net assets. Upon the adoption of the Liquidation Basis of Accounting, the Partnership recorded adjustments to its net assets in liquidation related to the General Partners’ Controlling Interest, effective April 1, 2021, in the amount of $(7,679,447). These adjustments are allocated to the Real Property Account based on its proportionate interest in the Partnership and are reflected in the Real Property Account’s net assets in liquidation as of April 1, 2021. Going Concern Basis All financial results and disclosures through March 31, 2021, prior to adopting the Liquidation Basis of Accounting, are presented based on a Going Concern Basis, which contemplates the realization of assets and liabilities in the normal course of business. Note 2: Summary of Significant Accounting Policies (continued) The Real Property Account has evaluated subsequent events through the date these financial statements were issued, and no other adjustment or disclosure is required in the financial statements. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures at the date of the financial statements and the reported amounts of increases and decreases in net assets resulting from operations during the reporting period. Actual results could differ from those estimates. The most significant estimates relate to the valuation of the investment in the Partnership. Fair value is used to approximate the net realizable value of the investment in the Partnership at liquidation basis of accounting. See Note 9 for more information. B. Investment in Partnership Interest The investment in the Partnership is based on the Real Property Account’s proportionate interest of the Partnership’s fair value. At both December 31, 2021 and 2020, the Real Property Account’s share of the general partners' controlling interest of the Partnership was 42.5% or 1,838,524 shares. C. Income Recognition Liquidation Basis of Accounting Under the Liquidation Basis of Accounting, the Real Property Account has accrued all revenue and expenses that it expects to incur through the completion of its liquidation to the extent it has a reasonable basis of estimation. Subsequent to April 1, 2021, the Real Property Account’s estimated revenue and expenses did not differ from the actual results. Going Concern Basis Net investment income or loss and recognized gains and losses are allocated based upon the average daily net assets for the investment in the Partnership. Amounts are based on the Real Property Account’s proportionate interest in the Partnership. All changes in fair value are recorded as net change in unrealized appreciation (depreciation) on investments in the Statements of Operations. D. Equity of The Prudential Insurance Company of America Prudential maintains a position in the Real Property Account for liquidity purposes, including unit purchases and redemptions, Partnership share transactions, and expense processing. The position does not affect contract owners’ accounts or the related unit values. There were no cash transactions at the Real Property Account level for the years ended December 31, 2021, 2020, and 2019 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, 2021, 2020, and 2019. |
Taxes
Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Taxes | TaxesPrudential 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. Prudential management will review periodically the status of the policy in the event of changes in the tax law. |
Net Contributions (Withdrawals)
Net Contributions (Withdrawals) by Contract Owners | 12 Months Ended |
Dec. 31, 2021 | |
Net Contributions Withdrawals By Contract Owners [Abstract] | |
Net Contributions (Withdrawals) by Contract Owners | Net Contributions (Withdrawals) by Contract OwnersNet contributions (withdrawals) by contract owners for the Real Property Account by product for the period from April 1, 2021 to December 31, 2021, for the period ended March 31, 2021, and for the years ended December 31, 2020 and 2019 were as follows: For the period from April 1, 2021 to December 31, 2021 VIP & CVAL, PVAL & PVAL TOTAL Contract owner net payments $ — $ 157,888 $ 157,888 Policy loans — (344,835) (344,835) Policy loan repayments and interest — 347,134 347,134 Surrenders, withdrawals and death benefits (129,261) (1,770,087) (1,899,348) Net transfers from/(to) other subaccounts or fixed rate option (2,551) (2,075,323) (2,077,874) Miscellaneous transactions (6) 4,222 4,216 Administrative and other charges (98) (1,098,739) (1,098,837) $ (131,916) $ (4,779,740) $ (4,911,656) For the period ended March 31, 2021 VIP & CVAL, PVAL & PVAL TOTAL Contract owner net payments $ 147 $ 556,412 $ 556,559 Policy loans — (174,038) (174,038) Policy loan repayments and interest — 369,710 369,710 Surrenders, withdrawals and death benefits (39,455) (757,014) (796,469) Net transfers from/(to) other subaccounts or fixed rate option (14,621) (826,033) (840,654) Miscellaneous transactions — 5,139 5,139 Administrative and other charges (57) (278,792) (278,849) $ (53,986) $ (1,104,616) $ (1,158,602) December 31, 2020 VIP & CVAL, PVAL & PVAL TOTAL Contract owner net payments $ 883 $ 2,822,286 $ 2,823,169 Policy loans — (756,606) (756,606) Policy loan repayments and interest — 1,100,196 1,100,196 Surrenders, withdrawals and death benefits (83,951) (2,857,786) (2,941,737) Net transfers from/(to) other subaccounts or fixed rate option (46,352) (1,331,363) (1,377,715) Miscellaneous transactions 45 30,828 30,873 Administrative and other charges (251) (1,365,751) (1,366,002) $ (129,626) $ (2,358,196) $ (2,487,822) December 31, 2019 VIP & CVAL, PVAL & PVAL TOTAL Contract owner net payments $ 789 $ 2,364,876 $ 2,365,665 Policy loans — (1,663,411) (1,663,411) Policy loan repayments and interest — 1,276,514 1,276,514 Surrenders, withdrawals and death benefits (152,845) (3,179,843) (3,332,688) Net transfers from/(to) other subaccounts or fixed rate option (25,510) (575,622) (601,132) Miscellaneous transactions 4 (2,762) (2,758) Administrative and other charges (425) (1,481,414) (1,481,839) $ (177,987) $ (3,261,662) $ (3,439,649) |
Partnership Distributions
Partnership Distributions | 12 Months Ended |
Dec. 31, 2021 | |
Partnership Distributions [Abstract] | |
Partnership Distributions | Partnership Distributions For the years ended December 31, 2021, 2020, and 2019, the Partnership made no distributions. For the years ended December 31, 2021, 2020, and 2019, there were no purchases of the Partnership by the Real Property Account. |
Unit Activity
Unit Activity | 12 Months Ended |
Dec. 31, 2021 | |
Unit Activity [Abstract] | |
Unit Activity | Unit Activity The changes in contract owner units outstanding for the Real Property Account by product for the period from April 1, 2021 to December 31, 2021, for the period ended March 31, 2021, and for the years ended December 31, 2020 and 2019 were as follows: For the period from April 1, 2021 to December 31, 2021 VIP & PDISCO+ CVAL, PVAL & PVAL TOTAL Units issued 10 30,008 30,018 Units redeemed (50,050) (1,610,468) (1,660,518) For the period ended March 31, 2021 VIP & PDISCO+ CVAL, PVAL & PVAL TOTAL Units issued 50 60,779 60,829 Units redeemed (19,775) (415,994) (435,769) December 31, 2020 VIP & PDISCO+ CVAL, PVAL & PVAL TOTAL Units issued 847 273,150 273,997 Units redeemed (43,734) (969,086) (1,012,820) December 31, 2019 VIP & PDISCO+ CVAL, PVAL & PVAL TOTAL Units issued 13,604 204,156 217,760 Units redeemed (69,683) (1,101,042) (1,170,725) |
Financial Highlights
Financial Highlights | 12 Months Ended |
Dec. 31, 2021 | |
Financial Highlights [Abstract] | |
Financial Highlights | Financial Highlights Prudential 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. Liquidation Basis of Accounting The Real Property Account’s management determined that presentation of financial highlights is not relevant and useful in understanding the liquidation basis financial statements. As a result, the Real Property Account elected to exclude the presentation of financial highlights for the period April 1, 2021 to December 31, 2021. Going Concern Basis In the table below, the contract owner units and net assets, the investment income ratio and the ranges of lowest to highest unit values, expense ratios and total returns are presented for the products offered by Prudential and funded through the Real Property Account. Only product designs within the Real Property Account that had contract owner units outstanding during the respective periods were considered when determining the ranges, which exclude Prudential’s position in the Real Property Account. The table may not reflect the minimum and maximum contract charges as contract owners may not have selected all available and applicable products offered by Prudential as disclosed in Note 1. Note 7: Financial Highlights (continued) Units Unit Value Net Assets Investment Income Ratio (1) Expense Ratio (2) Lowest — Highest Total Return (3) Lowest — Highest March 31, 2021 17,954 $2.73 — $ 3.27 $ 55,447 0.40 % 0.15% — 0.30 % (0.63)% — (0.49) % December 31, 2020 18,329 $2.75 — $ 3.29 $ 56,909 2.30 % 0.60% — 1.20 % (14.19)% — (13.69) % December 31, 2019 19,068 $3.20 — $ 3.81 $ 68,739 2.74 % 0.60% — 1.20 % 1.55% — 2.16 % December 31, 2018 20,021 $3.15 — $ 3.73 $ 70,813 3.06 % 0.60% — 1.20 % 2.65% — 3.27 % December 31, 2017 20,711 $3.07 — $ 3.61 $ 71,067 3.10 % 0.60% — 1.20 % 3.66% — 4.28 % (1) These amounts represent the contract owners' proportionate share of net investment income from the underlying Partnership divided by the contract owners' average daily net assets of the Real Property Account. These ratios exclude those expenses, such as mortality and expense risk and administrative expenses that result in direct reductions in the unit values. (2) These amounts represent the annualized contract expenses of the Real Property Account (except for the period ended March 31, 2021 which is not annualized), consisting primarily of mortality and expense risk and administrative 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. (3) These amounts represent the total return for the periods indicated, including changes in the value of the underlying Partnership, and reflect deductions for all items included in the expense ratio. 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. Prudential also maintains a position in the Real Property Account to provide for property acquisitions and capital expenditure funding needs. The table below reflects information for assets held by Prudential. Charges for mortality and expense risk and administrative expenses are used by Prudential to purchase additional investments in its account resulting in no impact to its net assets. Net Assets March 31, 2021 $27,261 December 31, 2020 $26,084 December 31, 2019 $26,840 December 31, 2018 $22,193 December 31, 2017 $20,179 Charges and Expenses A. Mortality and Expense Risk Charges Mortality and expense risk charges are determined daily using an effective annual rate of 1.2%, 0.9%, 0.6% and 1.2% for PDISCO+, PVAL, PVAL $100,000 + Face Value and VIP, respectively (for PDISCO+, the 1.2% includes a 0.20% administrative charge). CVAL used the same fees and charges as the PVAL $100,000 + Face Value. Mortality risk is the risk that life insurance contract owners may not live as long as estimated or annuitants may live longer than estimated, and expense risk is the risk that the cost of issuing and administering the contracts may exceed related charges by Prudential. The mortality risk and expense risk charges are assessed through a reduction in unit values. B. Cost of Insurance and Other Related Charges Contract owner contributions are subject to certain deductions prior to being invested in the Real Property Account. The deductions for PVAL and PVAL $100,000 + Face Value are (1) taxes attributable to premiums; and (2) transaction costs which are deducted from each premium payment to cover premium collection and processing costs. Contracts are subject to charges on each basic premium for assuming a guaranteed minimum death benefit risk. This charge compensates Prudential for the risk that an insured may die at a time when the death benefit exceeds the benefit that would have been payable in the absence of a minimum guarantee. These charges are assessed through the redemption of units. Note 7: Financial Highlights (continued) C. Deferred Sales Charge A deferred sales charge is imposed upon the withdrawals of certain purchase payments to compensate Prudential for sales and other marketing expenses for PDISCO+ and VIP. The amount of any 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. D. Partial Withdrawal Charge 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. E. Annual Maintenance Charge An annual maintenance charge, applicable to 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 affected, including a withdrawal to affect an annuity. The charge is made by reducing accumulation units credited to a contract owner’s account. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party TransactionsThe Real Property Account has transactions and relationships with Prudential and other affiliates. Due to these relationships, it is possible that the terms of these transactions are not the same as those that would result from transactions among unrelated parties. Prudential Financial and its affiliates perform various services on behalf of the Partnership in which the Real Property Account invests and may receive fees for the services performed. These services include, among other things, shareholder communications, postage, transfer agency and various other record keeping and customer service functions. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements 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 Real Property Account values its investment in the Partnership at fair value, which reflects the Real Property Account's proportionate interest in the net asset value of the Partnership, in accordance with the Financial Accounting Standards Board Accounting Standards Codification Topic 820, Fair Value Measurement. As a result of adopting the Liquidation Basis of Accounting, as discussed in the Partnership’s notes to the consolidated financial statements, the real estate assets were recorded at their estimated liquidation value, which represents the estimated gross amounts of cash that the Partnership will collect on disposal of assets as it carries out its liquidation plan. Specific for the Partnership’s real estate assets under the Going Concern Basis, the properties owned by the Partnership are illiquid and their fair value is based on estimates from property appraisal reports prepared by independent real estate appraisers as discussed in the notes to the Partnership’s audited consolidated financial statements. The purpose of an appraisal is to estimate the fair value of real estate as of a specific date. The estimate of fair value of real estate is based on the conventional approaches to value, all of which require the exercise of subjective judgment. The three approaches are: (1) current cost of reproducing the real estate less deterioration and functional and economic obsolescence; (2) discounting a series of income streams and reversion at a specific yield or by directly capitalizing a single year income estimate by an appropriate factor; and (3) value indicated by recent sales of comparable real estate in the market. In the reconciliation of these three approaches, the independent appraiser uses one or a combination of them, to come up with the approximate value for the type of real estate in the market. The following is a summary of the investment strategy, risks, and redemption provisions of the Partnership: The Partnership has a policy of investing at least 65% of its assets in direct ownership interests in income-producing real estate, such as office buildings, shopping centers, hotels, apartments or industrial properties, and participating mortgage loans. The Partnership is 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. The Partnership properties are also subject to the risk of loss due to certain types of damage, which are either uninsurable or not economically insurable. The Partnership enters into loan agreements with certain lenders to finance its real estate investment transactions. Unfavorable economic conditions could increase related borrowing costs, limit access to the capital markets or result in a decision by lenders not to extend credit to the Partnership. Refer to the Partnership’s audited consolidated financial statements for other related risks. Note 9: Fair Value Measurements (continued) The Partnership allows for withdrawal of cash, in any amount up to a partner’s value of the Partnership. Ordinarily payment of the amount requested will be made on the day following the request. The Partnership reserves the right to defer such payments for a period of up to six months if the partners or the investment manager determine that there is insufficient cash available and prompt disposition of investments held by the Partnership cannot be made on commercially reasonable terms. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Basis of Accounting | Basis of Accounting The financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). Liquidation Basis of Accounting As a result of the filing of the Plan of Liquidation by Prudential, it was determined that liquidation was imminent and the Real Property Account’s basis of accounting transitioned effective April 1, 2021 from the going concern basis of accounting (“Going Concern Basis) to liquidation basis of accounting (“Liquidation Basis of Accounting”) in accordance with U.S. GAAP. Liquidation Basis of Accounting requires the Real Property Account’s assets to be measured at the estimated amounts of consideration the Real Property Account expects to collect in settling or disposing of its assets, and liabilities are to be measured at the estimated amounts at which the liabilities are expected to be settled. Actual costs and income, such as charges for mortality and expense risk and administrative expenses, may differ from amounts reflected in the financial statements because of the inherent uncertainty in estimating future events. Charges for mortality and expense risk and administrative expenses are used by Prudential to purchase additional investments in its account resulting in no impact to its net assets. Upon the adoption of the Liquidation Basis of Accounting, the Partnership recorded adjustments to its net assets in liquidation related to the General Partners’ Controlling Interest, effective April 1, 2021, in the amount of $(7,679,447). These adjustments are allocated to the Real Property Account based on its proportionate interest in the Partnership and are reflected in the Real Property Account’s net assets in liquidation as of April 1, 2021. Going Concern Basis All financial results and disclosures through March 31, 2021, prior to adopting the Liquidation Basis of Accounting, are presented based on a Going Concern Basis, which contemplates the realization of assets and liabilities in the normal course of business. |
Use of Estimates | Use of EstimatesThe preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures at the date of the financial statements and the reported amounts of increases and decreases in net assets resulting from operations during the reporting period. Actual results could differ from those estimates. The most significant estimates relate to the valuation of the investment in the Partnership. Fair value is used to approximate the net realizable value of the investment in the Partnership at liquidation basis of accounting. See Note 9 for more information. |
Investment In Partnership Interest | Investment in Partnership InterestThe investment in the Partnership is based on the Real Property Account’s proportionate interest of the Partnership’s fair value. At both December 31, 2021 and 2020, the Real Property Account’s share of the general partners' controlling interest of the Partnership was 42.5% or 1,838,524 shares. |
Income Recognition | Income Recognition Liquidation Basis of Accounting Under the Liquidation Basis of Accounting, the Real Property Account has accrued all revenue and expenses that it expects to incur through the completion of its liquidation to the extent it has a reasonable basis of estimation. Subsequent to April 1, 2021, the Real Property Account’s estimated revenue and expenses did not differ from the actual results. Going Concern Basis |
Equity of The Prudential Insurance Company of America | Equity of The Prudential Insurance Company of America Prudential maintains a position in the Real Property Account for liquidity purposes, including unit purchases and redemptions, Partnership share transactions, and expense processing. The position does not affect contract owners’ accounts or the related unit values. There were no cash transactions at the Real Property Account level for the years ended December 31, 2021, 2020, and 2019 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, 2021, 2020, and 2019. |
Net Contributions (Withdrawal_2
Net Contributions (Withdrawals) by Contract Owners (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Net Contributions Withdrawals By Contract Owners [Abstract] | |
Schedule of Net Contributions (Withdrawals) by Contract Owners | Net contributions (withdrawals) by contract owners for the Real Property Account by product for the period from April 1, 2021 to December 31, 2021, for the period ended March 31, 2021, and for the years ended December 31, 2020 and 2019 were as follows: For the period from April 1, 2021 to December 31, 2021 VIP & CVAL, PVAL & PVAL TOTAL Contract owner net payments $ — $ 157,888 $ 157,888 Policy loans — (344,835) (344,835) Policy loan repayments and interest — 347,134 347,134 Surrenders, withdrawals and death benefits (129,261) (1,770,087) (1,899,348) Net transfers from/(to) other subaccounts or fixed rate option (2,551) (2,075,323) (2,077,874) Miscellaneous transactions (6) 4,222 4,216 Administrative and other charges (98) (1,098,739) (1,098,837) $ (131,916) $ (4,779,740) $ (4,911,656) For the period ended March 31, 2021 VIP & CVAL, PVAL & PVAL TOTAL Contract owner net payments $ 147 $ 556,412 $ 556,559 Policy loans — (174,038) (174,038) Policy loan repayments and interest — 369,710 369,710 Surrenders, withdrawals and death benefits (39,455) (757,014) (796,469) Net transfers from/(to) other subaccounts or fixed rate option (14,621) (826,033) (840,654) Miscellaneous transactions — 5,139 5,139 Administrative and other charges (57) (278,792) (278,849) $ (53,986) $ (1,104,616) $ (1,158,602) December 31, 2020 VIP & CVAL, PVAL & PVAL TOTAL Contract owner net payments $ 883 $ 2,822,286 $ 2,823,169 Policy loans — (756,606) (756,606) Policy loan repayments and interest — 1,100,196 1,100,196 Surrenders, withdrawals and death benefits (83,951) (2,857,786) (2,941,737) Net transfers from/(to) other subaccounts or fixed rate option (46,352) (1,331,363) (1,377,715) Miscellaneous transactions 45 30,828 30,873 Administrative and other charges (251) (1,365,751) (1,366,002) $ (129,626) $ (2,358,196) $ (2,487,822) December 31, 2019 VIP & CVAL, PVAL & PVAL TOTAL Contract owner net payments $ 789 $ 2,364,876 $ 2,365,665 Policy loans — (1,663,411) (1,663,411) Policy loan repayments and interest — 1,276,514 1,276,514 Surrenders, withdrawals and death benefits (152,845) (3,179,843) (3,332,688) Net transfers from/(to) other subaccounts or fixed rate option (25,510) (575,622) (601,132) Miscellaneous transactions 4 (2,762) (2,758) Administrative and other charges (425) (1,481,414) (1,481,839) $ (177,987) $ (3,261,662) $ (3,439,649) |
Unit Activity (Tables)
Unit Activity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Unit Activity [Abstract] | |
Schedule of Units of Partnership Interest | The changes in contract owner units outstanding for the Real Property Account by product for the period from April 1, 2021 to December 31, 2021, for the period ended March 31, 2021, and for the years ended December 31, 2020 and 2019 were as follows: For the period from April 1, 2021 to December 31, 2021 VIP & PDISCO+ CVAL, PVAL & PVAL TOTAL Units issued 10 30,008 30,018 Units redeemed (50,050) (1,610,468) (1,660,518) For the period ended March 31, 2021 VIP & PDISCO+ CVAL, PVAL & PVAL TOTAL Units issued 50 60,779 60,829 Units redeemed (19,775) (415,994) (435,769) December 31, 2020 VIP & PDISCO+ CVAL, PVAL & PVAL TOTAL Units issued 847 273,150 273,997 Units redeemed (43,734) (969,086) (1,012,820) December 31, 2019 VIP & PDISCO+ CVAL, PVAL & PVAL TOTAL Units issued 13,604 204,156 217,760 Units redeemed (69,683) (1,101,042) (1,170,725) |
Financial Highlights (Tables)
Financial Highlights (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Financial Highlights [Abstract] | |
Schedule of Financial Highlights | In the table below, the contract owner units and net assets, the investment income ratio and the ranges of lowest to highest unit values, expense ratios and total returns are presented for the products offered by Prudential and funded through the Real Property Account. Only product designs within the Real Property Account that had contract owner units outstanding during the respective periods were considered when determining the ranges, which exclude Prudential’s position in the Real Property Account. The table may not reflect the minimum and maximum contract charges as contract owners may not have selected all available and applicable products offered by Prudential as disclosed in Note 1. Note 7: Financial Highlights (continued) Units Unit Value Net Assets Investment Income Ratio (1) Expense Ratio (2) Lowest — Highest Total Return (3) Lowest — Highest March 31, 2021 17,954 $2.73 — $ 3.27 $ 55,447 0.40 % 0.15% — 0.30 % (0.63)% — (0.49) % December 31, 2020 18,329 $2.75 — $ 3.29 $ 56,909 2.30 % 0.60% — 1.20 % (14.19)% — (13.69) % December 31, 2019 19,068 $3.20 — $ 3.81 $ 68,739 2.74 % 0.60% — 1.20 % 1.55% — 2.16 % December 31, 2018 20,021 $3.15 — $ 3.73 $ 70,813 3.06 % 0.60% — 1.20 % 2.65% — 3.27 % December 31, 2017 20,711 $3.07 — $ 3.61 $ 71,067 3.10 % 0.60% — 1.20 % 3.66% — 4.28 % (1) These amounts represent the contract owners' proportionate share of net investment income from the underlying Partnership divided by the contract owners' average daily net assets of the Real Property Account. These ratios exclude those expenses, such as mortality and expense risk and administrative expenses that result in direct reductions in the unit values. (2) These amounts represent the annualized contract expenses of the Real Property Account (except for the period ended March 31, 2021 which is not annualized), consisting primarily of mortality and expense risk and administrative 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. (3) These amounts represent the total return for the periods indicated, including changes in the value of the underlying Partnership, and reflect deductions for all items included in the expense ratio. 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. Net Assets March 31, 2021 $27,261 December 31, 2020 $26,084 December 31, 2019 $26,840 December 31, 2018 $22,193 December 31, 2017 $20,179 |
General (Narrative) (Details)
General (Narrative) (Details) | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Minimum percent of partnership assets invested in direct ownership interests | 65.00% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |||
Percent of interest in the General Partners Controlling Interest | 42.50% | 42.50% | |
Interest in the General Partners Controlling Interest (in shares) | 1,838,524 | 1,838,524 | |
Cash transactions | $ 0 | $ 0 | $ 0 |
Net Contributions (Withdrawal_3
Net Contributions (Withdrawals) by Contract Owners (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net Contributions Withdrawals By Contract Owners [Line Items] | ||||
Contract owner net payments | $ 556,559 | $ 157,888 | $ 2,823,169 | $ 2,365,665 |
Policy loans | (174,038) | (344,835) | (756,606) | (1,663,411) |
Policy loan repayments and interest | 369,710 | 347,134 | 1,100,196 | 1,276,514 |
Surrenders, withdrawals and death benefits | (796,469) | (1,899,348) | (2,941,737) | (3,332,688) |
Net transfers from/(to) other subaccounts or fixed rate option | (840,654) | (2,077,874) | (1,377,715) | (601,132) |
Miscellaneous transactions | 5,139 | 4,216 | 30,873 | (2,758) |
Administrative and other charges | (278,849) | (1,098,837) | (1,366,002) | (1,481,839) |
Net Contributions (Withdrawals) by Contract Owners | (1,158,602) | (4,911,656) | (2,487,822) | (3,439,649) |
VIP & PDISCO+ | ||||
Net Contributions Withdrawals By Contract Owners [Line Items] | ||||
Contract owner net payments | 147 | 0 | 883 | 789 |
Policy loans | 0 | 0 | 0 | 0 |
Policy loan repayments and interest | 0 | 0 | 0 | 0 |
Surrenders, withdrawals and death benefits | (39,455) | (129,261) | (83,951) | (152,845) |
Net transfers from/(to) other subaccounts or fixed rate option | (14,621) | (2,551) | (46,352) | (25,510) |
Miscellaneous transactions | 0 | (6) | 45 | 4 |
Administrative and other charges | (57) | (98) | (251) | (425) |
Net Contributions (Withdrawals) by Contract Owners | (53,986) | (131,916) | (129,626) | (177,987) |
CVAL, PVAL & PVAL $100,000+ face value | ||||
Net Contributions Withdrawals By Contract Owners [Line Items] | ||||
Contract owner net payments | 556,412 | 157,888 | 2,822,286 | 2,364,876 |
Policy loans | (174,038) | (344,835) | (756,606) | (1,663,411) |
Policy loan repayments and interest | 369,710 | 347,134 | 1,100,196 | 1,276,514 |
Surrenders, withdrawals and death benefits | (757,014) | (1,770,087) | (2,857,786) | (3,179,843) |
Net transfers from/(to) other subaccounts or fixed rate option | (826,033) | (2,075,323) | (1,331,363) | (575,622) |
Miscellaneous transactions | 5,139 | 4,222 | 30,828 | (2,762) |
Administrative and other charges | (278,792) | (1,098,739) | (1,365,751) | (1,481,414) |
Net Contributions (Withdrawals) by Contract Owners | $ (1,104,616) | $ (4,779,740) | $ (2,358,196) | $ (3,261,662) |
Partnership Distributions (Narr
Partnership Distributions (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Partnership Distributions [Abstract] | |||
Partnership distribution made | $ 0 | $ 0 | $ 0 |
Purchases of the Partnership by the Real Property Account | $ 0 | $ 0 | $ 0 |
Unit Activity (Details)
Unit Activity (Details) - shares | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Unit Activity [Line Items] | ||||
Units issued | 60,829 | 30,018 | 273,997 | 217,760 |
Units redeemed | (435,769) | (1,660,518) | (1,012,820) | (1,170,725) |
VIP & PDISCO+ | ||||
Unit Activity [Line Items] | ||||
Units issued | 50 | 10 | 847 | 13,604 |
Units redeemed | (19,775) | (50,050) | (43,734) | (69,683) |
CVAL, PVAL & PVAL $100,000+ face value | ||||
Unit Activity [Line Items] | ||||
Units issued | 60,779 | 30,008 | 273,150 | 204,156 |
Units redeemed | (415,994) | (1,610,468) | (969,086) | (1,101,042) |
Financial Highlights (Details)
Financial Highlights (Details) - Going Concern Basis - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financial Highlights [Line Items] | |||||
Units (in shares) | 18,328,956 | ||||
Net Assets | $ 82,708,058 | $ 82,993,691 | $ 95,579,179 | $ 93,006,006 | |
Company Net Assets | |||||
Financial Highlights [Line Items] | |||||
Net Assets | $ 27,261,000 | $ 26,084,000 | $ 26,840,000 | $ 22,193,000 | $ 20,179,000 |
Units | |||||
Financial Highlights [Line Items] | |||||
Units (in shares) | 17,954,000 | 18,329,000 | 19,068,000 | 20,021,000 | 20,711,000 |
Units | Minimum | |||||
Financial Highlights [Line Items] | |||||
Unit Value (in dollars per share) | $ 2.73 | $ 2.75 | $ 3.20 | $ 3.15 | $ 3.07 |
Units | Maximum | |||||
Financial Highlights [Line Items] | |||||
Unit Value (in dollars per share) | $ 3.27 | $ 3.29 | $ 3.81 | $ 3.73 | $ 3.61 |
Net Assets | |||||
Financial Highlights [Line Items] | |||||
Net Assets | $ 55,447,000 | $ 56,909,000 | $ 68,739,000 | $ 70,813,000 | $ 71,067,000 |
Investment Income Ratio | |||||
Financial Highlights [Line Items] | |||||
Investment Income Ratio | 0.40% | 2.30% | 2.74% | 3.06% | 3.10% |
Expense Ratio | Minimum | |||||
Financial Highlights [Line Items] | |||||
Expense Ratio | 0.15% | 0.60% | 0.60% | 0.60% | 0.60% |
Expense Ratio | Maximum | |||||
Financial Highlights [Line Items] | |||||
Expense Ratio | 0.30% | 1.20% | 1.20% | 1.20% | 1.20% |
Total Return | Minimum | |||||
Financial Highlights [Line Items] | |||||
Total Return | (0.63%) | (14.19%) | 1.55% | 2.65% | 3.66% |
Total Return | Maximum | |||||
Financial Highlights [Line Items] | |||||
Total Return | (0.49%) | (13.69%) | 2.16% | 3.27% | 4.28% |
Financial Highlights (Narrative
Financial Highlights (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2021USD ($) | |
PDISCO | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Effective annual rate used to determine daily the mortality risk and expense risk charges | 1.20% |
Effective annual rate used to determine daily the administrative charges | 0.20% |
Annual maintenance charge | $ 30 |
Minimum contract fund balance required to waive annual maintenance charge (less than) | $ 10,000 |
PVAL | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Effective annual rate used to determine daily the mortality risk and expense risk charges | 0.90% |
Partial withdrawal charge, amount | $ 15 |
Partial withdrawal charge, percent | 2.00% |
PVAL $100,000 Face Value | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Effective annual rate used to determine daily the mortality risk and expense risk charges | 0.60% |
Partial withdrawal charge, amount | $ 15 |
Partial withdrawal charge, percent | 2.00% |
VIP | |
Net Amount at Risk by Product and Guarantee [Line Items] | |
Effective annual rate used to determine daily the mortality risk and expense risk charges | 1.20% |
Annual maintenance charge | $ 30 |
Minimum contract fund balance required to waive annual maintenance charge (less than) | $ 10,000 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) $ in Millions | Dec. 31, 2021USD ($) |
Fair Value Disclosures [Abstract] | |
Minimum percent of partnership assets invested in direct ownership interests | 65.00% |
Unfunded capital commitments | $ 0 |