<ARTICLE> 5 <CIK> 0000813762 <NAME> AMERICAN REAL ESTATE PARTNERS, L.P. <MULTIPLIER> 1,000 <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> DEC-31-1997 <PERIOD-END> SEP-30-1997 <CASH> 473,238 <SECURITIES> 0 <RECEIVABLES> 0 <ALLOWANCES> 0 <INVENTORY> 0 <CURRENT-ASSETS> 0 <PP&E> 431,100 <DEPRECIATION> 44,124 <TOTAL-ASSETS> 966,144 <CURRENT-LIABILITIES> 0 <BONDS> 152,613 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 0 <OTHER-SE> 801,580 <TOTAL-LIABILITY-AND-EQUITY> 966,144 <SALES> 0 <TOTAL-REVENUES> 48,876 <CGS> 0 <TOTAL-COSTS> 11,000 <OTHER-EXPENSES> 2,216 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 9,541 <INCOME-PRETAX> 67,890 <INCOME-TAX> 0 <INCOME-CONTINUING> 0 <DISCONTINUED> 0 <EXTRAORDINARY> (251) <CHANGES> 0 <NET-INCOME> 67,639 <EPS-PRIMARY> 2.35 <EPS-DILUTED> 2.35