The Prudential Series Fund

(2) Net investment income for the year ended December 31, 2007 reflects partial period results for the Austin, Texas
apartment property acquired on May 8, 2007.
(3) Net investment income for the year ended December 31, 2007 reflects partial period results for the Charlotte,
North Carolina apartment property acquired on September 6, 2007.
Net Investment Income
Net investment income for the Partnership’s apartment properties was $3.1 million for the year ended December 31,
2008, an increase of approximately $1.0 million from the prior year. The increase in net investment income for the year
ended December 31, 2008 was primarily due to the additional rental income generated from the acquisition of the
apartment properties in Austin, Texas and Charlotte, North Carolina on May 8, 2007 and September 6, 2007,
respectively.
Total Realized and Unrealized Gain/(Loss)
The apartment properties owned by the Partnership recorded a net unrealized loss of approximately $12.3 million for
the year ended December 31, 2008, compared with a net unrealized gain of approximately $3.1 million for the prior
year. The net unrealized loss for the year ended December 31, 2008 was primarily due to increased investment rates
and decreased market rents across the apartment sector that caused each property to decline in value.
RETAIL PROPERTIES
Year Ended
December 31, 2008
Net
Investment
Income/(Loss)
2008
Net
Investment
Income/(Loss)
2007
Realized/
Unrealized
Gain/(Loss) 2008
Unrealized
Gain/(Loss)
2007
Occupancy
2008
Occupancy
2007
Property
Roswell, GA $1,674,996 $2,072,194 $(10,610,373) $(3,807,895) 38% 82%
Kansas City, KS (1) (15,941) 158,664 - 323,649 N/A N/A
Hampton, VA 1,318,984 1,299,715 (3,160,726) 492,521 98% 100%
Ocean City, MD 820,593 702,556 (686,899) (122,583) 95% 67%
Westminster, MD 1,181,465 1,576,148 (3,394,988) 69,981 100% 100%
Dunn, NC (2) 81,363 215,118 (3,484,491) 651,926 34% 90%
CARS Preferred Equity 1,000,939 974,559 (2,527,488) - N/A N/A
$6,062,399 $6,998,954 $(23,864,965) $(2,392,401)
(1) The Kansas City, Kansas retail property was sold on June 29, 2007 but certain post-closing adjustments were
recognized during the year ended December 31, 2008. Net investment income for the year ended 2007 reflects
partial period results to the June 29, 2007 sale.
(2) Net investment income for the year ended December 31, 2007 reflects partial period results for the Dunn, North
Carolina retail property acquired on August 17, 2007.
Net Investment Income
Net investment income for the Partnership’s retail properties was approximately $6.1 million for the year ended
December 31, 2008, a decrease of approximately $0.9 million from the prior year. The decrease was primarily due to
(a) the allowance for accrued income that was deemed uncollectible at the retail property in Westminster, MD; (b)
increased vacancy at the Roswell, Georgia retail property; (c) lost rent related to the Kansas City, Kansas retail
property sold on June 29, 2007; and (d) a one-time occurrence related to bad debt expense at the retail property in
Dunn, North Carolina. Partially offsetting these losses was an increase in net investment income at the property in
Ocean City, Maryland due to completion of renovation and increased occupancy.
Total Realized and Unrealized Gain/Loss
The retail properties owned by the Partnership recorded a net unrealized loss of approximately $23.9 million for the
year ended December 31, 2008, compared with a net realized and unrealized loss of approximately $2.4 million for the
prior year. The net unrealized loss for the year ended December 31, 2008 was primarily due to increased investment
rates across the retail sector based on declining national consumption, which caused each property to decline in
value. The aggregate net unrealized loss was also partially attributable to the $10.6 million loss recorded at the retail
property in Roswell, Georgia, which is consistent with the most recent offers received in connection with the continued
sale efforts of the property.
21 - Real Property