<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