<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>                               JUN-30-1998
<CASH>                                          98,299
<SECURITIES>                                   423,012
<RECEIVABLES>                                        0
<ALLOWANCES>                                         0
<INVENTORY>                                          0
<CURRENT-ASSETS>                                     0
<PP&E>                                         413,087
<DEPRECIATION>                                  39,758
<TOTAL-ASSETS>                               1,042,124
<CURRENT-LIABILITIES>                                0
<BONDS>                                        185,563
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                             0
<OTHER-SE>                                     843,802
<TOTAL-LIABILITY-AND-EQUITY>                 1,042,124
<SALES>                                              0
<TOTAL-REVENUES>                                42,675
<CGS>                                                0
<TOTAL-COSTS>                                    5,839
<OTHER-EXPENSES>                                 1,650
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                               7,184
<INCOME-PRETAX>                                 34,477
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                             34,477
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    34,477
<EPS-PRIMARY>                                      .69
<EPS-DILUTED>                                      .63