<ARTICLE> 5 <CIK> 0000813762 <NAME> AMERICAN REAL ESTATE PARTNERS, L.P. <MULTIPLIER> 1,000 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1997 <PERIOD-END> MAR-31-1997 <CASH> 246,563 <SECURITIES> 0 <RECEIVABLES> 0 <ALLOWANCES> 0 <INVENTORY> 0 <CURRENT-ASSETS> 0 <PP&E> 405,497 <DEPRECIATION> 45,661 <TOTAL-ASSETS> 658,055 <CURRENT-LIABILITIES> 0 <BONDS> 141,483 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 0 <OTHER-SE> 502,800 <TOTAL-LIABILITY-AND-EQUITY> 658,055 <SALES> 0 <TOTAL-REVENUES> 17,299 <CGS> 0 <TOTAL-COSTS> 4,659 <OTHER-EXPENSES> 718 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 3,317 <INCOME-PRETAX> 40,789 <INCOME-TAX> 0 <INCOME-CONTINUING> 0 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 40,789 <EPS-PRIMARY> 1.43 <EPS-DILUTED> 1.43