<ARTICLE> 5 <CIK> 0000813762 <NAME> AMERICAN REAL ESTATE PARTNERS, L.P. <MULTIPLIER> 1000 <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-END> SEP-30-1998 <CASH> 66,844 <SECURITIES> 431,418 <RECEIVABLES> 0 <ALLOWANCES> 0 <INVENTORY> 0 <CURRENT-ASSETS> 0 <PP&E> 463,283 <DEPRECIATION> 40,665 <TOTAL-ASSETS> 1,088,123 <CURRENT-LIABILITIES> 0 <BONDS> 202,833 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 0 <OTHER-SE> 862,183 <TOTAL-LIABILITY-AND-EQUITY> 1,088,123 <SALES> 0 <TOTAL-REVENUES> 69,718 <CGS> 0 <TOTAL-COSTS> 9,928 <OTHER-EXPENSES> 2,313 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 11,224 <INCOME-PRETAX> 55,411 <INCOME-TAX> 0 <INCOME-CONTINUING> 55,411 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 55,411 <EPS-PRIMARY> 1.11 <EPS-DILUTED> 1.01