<ARTICLE> 5 <CIK> 0000813762 <NAME> AMERICAN REAL ESTATE PARTNERS, L.P. <MULTIPLIER> 1,000 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-END> MAR-31-1998 <CASH> 124,503 <SECURITIES> 386,884 <RECEIVABLES> 0 <ALLOWANCES> 0 <INVENTORY> 0 <CURRENT-ASSETS> 0 <PP&E> 427,336 <DEPRECIATION> 44,096 <TOTAL-ASSETS> 1,017,685 <CURRENT-LIABILITIES> 0 <BONDS> 177,196 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 0 <OTHER-SE> 827,325 <TOTAL-LIABILITY-AND-EQUITY> 1,017,685 <SALES> 0 <TOTAL-REVENUES> 21,356 <CGS> 0 <TOTAL-COSTS> 3,230 <OTHER-EXPENSES> 889 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 3,335 <INCOME-PRETAX> 18,000 <INCOME-TAX> 0 <INCOME-CONTINUING> 18,000 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 18,000 <EPS-PRIMARY> .36 <EPS-DILUTED> .33