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American Real Estate Partners, L.P. [LOGO]
Exhibit 99.2
Contact: John P. Saldarelli
Secretary and Treasurer
(914) 242-7700
FOR IMMEDIATE RELEASE
AMERICAN REAL ESTATE PARTNERS, L.P.
REPORTS FULL YEAR AND FOURTH QUARTER RESULTS
AND THAT NO DISTRIBUTIONS ARE EXPECTED TO BE MADE IN 2003
Mount Kisco, New York, March 31, 2003 - American Real Estate Partners, L.P.
("AREP") (NYSE:ACP) today reported the following full year and fourth quarter
financial results:
For the year ended December 31, 2002, diluted earnings per weighted average
limited partnership unit outstanding decreased from $1.19 in 2001 to $1.12 in
2002.
For the year ended December 31, 2002, earnings decreased by $3,083,000 to
$64,451,000 as compared to earnings for the year ended December 31, 2001,
primarily due to a write-down of equity securities available for sale, decreased
gain on sale of securities and the write-down of a limited partnership
investment partially offset by increased earnings from land, house and
condominium operations and increased gain on sale of real estate.
For the fourth quarter of 2002, diluted earnings per weighted average limited
partnership unit outstanding decreased from $.31 in 2001 to $.25 in 2002.
For the fourth quarter of 2002, earnings decreased by $2,969,000 to $14,748,000
as compared to earnings for the fourth quarter of 2001, primarily due to
decreased gain on sale of securities, a write-down of a limited partnership
investment and decreased interest and other income partially offset by increased
earnings from land, house and condominium operations and increased gain on sale
of real estate.
Continued.......
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FOR IMMEDIATE RELEASE
AMERICAN REAL ESTATE PARTNERS, L.P.
REPORTS FULL YEAR AND FOURTH QUARTER RESULTS
AND THAT NO DISTRIBUTIONS ARE EXPECTED TO BE MADE IN 2003
AREP also announced that no distributions on the Depositary Units are expected
to be made in 2003. AREP plans to continue to apply available cash flow toward
its operations, repayment of maturing indebtedness, tenant requirements,
investments, acquisitions, and other capital expenditures and for Partnership
contingencies and reserves, including environmental matters and scheduled lease
expirations. By the end of the year 2005, net leases representing approximately
23% of AREP's net annual rentals from its portfolio will be due for renewal, and
by the end of the year 2007, approximately 35% of such rentals will be due for
renewal. AREP believes that it should continue to hold and invest rather than
distribute cash. No distributions were made to Unitholders during 2002.
American Real Estate Partners, L.P. is a master limited partnership primarily
engaged in acquiring and managing real estate investments with a primary focus
on office, retail, industrial, hotel, gaming, and residential properties.
Continued.....
****Tables Follow***
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FOR IMMEDIATE RELEASE
AMERICAN REAL ESTATE PARTNERS, L.P.
REPORTS FULL YEAR AND FOURTH QUARTER RESULTS
AND THAT NO DISTRIBUTIONS ARE EXPECTED TO BE MADE IN 2003
CONSOLIDATED RESULTS OF EARNINGS
In thousands of dollars except per unit data
Year Ended December 31, 2002 2001
- ------------------------ ---- ----
Revenues $ 326,916 $ 297,323
============== ==============
Earnings before property
and securities transactions $ 70,899 $ 62,232
Provision for loss on real estate (3,212) (3,184)
Write-down of marketable equity securities (8,476) --
Gain on sale of marketable equity
and debt securities -- 6,749
Loss on limited partnership interests (3,750) --
Gain on sales and disposition
of real estate 8,990 1,737
--------------- --------------
Net earnings $ 64,451 $ 67,534
=============== ==============
Net earnings per L.P. unit:
Basic:
Net earnings $ 1.27 $ 1.34
=============== ==============
Weighted average units
outstanding 46,098,284 46,098,284
=============== ==============
Diluted:
Net earnings $ 1.12 $ 1.19
=============== ==============
Weighted average units and
equivalent units outstanding 56,466,698 55,599,112
=============== ==============
Continued.........
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FOR IMMEDIATE RELEASE
AMERICAN REAL ESTATE PARTNERS, L.P.
REPORTS FULL YEAR AND FOURTH QUARTER RESULTS
AND THAT NO DISTRIBUTIONS ARE EXPECTED TO BE MADE IN 2003
CONSOLIDATED RESULTS OF EARNINGS
In thousands of dollars except per unit data
Fourth Quarter ended December 31, 2002 2001
- --------------------------------- ---- ----
(unaudited)
Revenues $ 88,011 $ 76,594
=============== ==============
Earnings before property and
securities transactions $ 16,324 $ 15,111
Provision for loss on real estate (2,286) (3,184)
Loss on limited partnership
interests (3,750) --
Gain on sale of marketable
equity and debt securities -- 5,415
Gain on sales and disposition
of real estate 4,460 375
--------------- --------------
Net earnings $ 14,748 $ 17,717
=============== ==============
Net earnings per L.P. unit:
Basic:
Net earnings $ .29 $ .35
=============== ==============
Weighted average units
outstanding 46,098,284 46,098,284
=============== ==============
Diluted:
Net earnings $ .25 $ .31
================ ==============
Weighted average units and
equivalent units outstanding 57,087,165 56,125,996
================ ==============
(p: 8K-4-7-03)
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