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AMERICAN REAL ESTATE PARTNERS, L.P. REPORTS FOURTH QUARTER AND FULL YEAR RESULTS

 MOUNT KISCO, N.Y., March 31 /PRNewswire/ -- American Real Estate Partners, L.P. (NYSE: ACP) today reported the following fourth quarter and full year financial results:
 AMERICAN REAL ESTATE PARTNERS, L.P.
 Fourth quarter ended Dec. 31 1992 1991
 (Unaudited)
 Revenues $15,459,674 $13,991,924
 Earnings before property
 transactions 4,914,601 5,189,795
 Gain on sales and disposition
 of real estate 16,069 542,719
 Provision for loss on real estate (4,022,165) (2,000,000)
 Gain on extraordinary item -- 543,277
 Net earnings $ 908,505 $ 4,275,791
 Net earnings per L.P. unit before
 extraordinary item $.06 $.26
 Extraordinary item -- .04
 Net earnings per L.P. unit $.06 $.30
 Weighted average units outstanding 14,002,475 14,091,200
 Year ended Dec. 31 1992 1991
 Revenues $57,781,543 $56,570,823
 Earnings before property
 transactions 20,581,210 22,252,086
 Gain on sales and disposition
 of real estate 342,372 893,398
 Provision for loss on real estate (8,847,165) (4,252,284)
 (Loss) gain on extraordinary item (784,540) 543,277
 Net earnings $11,291,877 $19,436,477
 Net earnings per L.P. unit before
 extraordinary item $ .84 $1.31
 Extraordinary item (.05) .04
 Net earnings per L.P. unit $ .79 $1.35
 Weighted average units outstanding 14,058,153 14,092,681
 The company announced for the fourth quarter of 1992 that while revenues increased by 10.5 percent, expenses increased by 19.8 percent, resulting in a decrease in earnings before property transactions of 5.3 percent as compared to the fourth quarter of 1991. The increases in revenues and expenses were primarily due to hotel operating income and expenses related to the two hotels the company is now operating, which were formerly leased to a tenant that rejected its leases in bankruptcy. The decrease in earnings before property transactions was primarily due to the decline in rentals due to tenant bankruptcies and defaults, rent decreases due to the re-letting of property at lower rentals and increases in property expenses related to properties the company is now operating, primarily due to rejection of leases by tenants in bankruptcy.
 Gain on sales of real estate of approximately $16,000 were recorded for the three months ended Dec. 31, 1992 versus gains of approximately $543,000 for the fourth quarter of 1991. A provision for loss on real estate of approximately $4,022,000 was incurred during the fourth quarter of 1992 related to properties held for sale and certain other properties whose above market leases expired or were rejected by bankrupt tenants. During 1991 a provision for loss on real estate of $2,000,000 was incurred. Additionally, during the fourth quarter of 1991, a gain of approximately $543,000 was recognized on early extinguishment of debt.
 Reflecting the foregoing factors, net earnings for the fourth quarter of 1992 decreased by approximately $3,367,000, or 78.8 percent, as compared to the fourth quarter of 1991.
 For the year ended Dec. 31, 1992, revenues and expenses increased by 2.1 percent and 8.4 percent, respectively, resulting in a decrease in earnings before property transactions of 7.5 percent. The increases in revenues and expenses were primarily due to hotel operating income and expenses, as well as other income of approximately $657,000 resulting from a settlement with a bankrupt tenant. The decrease in earnings before property transactions was primarily due to the decline in rentals due to tenant bankruptcies and defaults and rent decreases due to the re-letting of property at lower rentals and increases in property expenses related to properties the company is now operating, primarily due to rejection of leases by tenants in bankruptcy.
 For the year ended Dec. 31, 1992, gain on sales of real estate of $342,000 were recorded as compared to approximately $893,000 in the comparable period in 1991. A provision for loss on real estate of approximately $8,847,000 was incurred, of which approximately $1,122,000 was related to assets held for sale and $7,725,000 to certain properties whose above market leases expired or were rejected by bankrupt tenants. For the comparable period in 1991 a provision for loss on real estate of approximately $4,252,000 was incurred. Additionally, during 1992 a loss on early extinguishment of debt of approximately $784,000 was recognized as compared to recognition during 1991 of a gain on early extinguishment of debt of $543,000.
 Reflecting the foregoing factors, net earnings for the year ended Dec. 31, 1992, decreased by approximately $8,145,000, or $41.9 percent, as compared to the year ended Dec. 31, 1991.
 American Real Estate Partners, L.P., is a master limited partnership engaged in acquiring and managing real estate with a primary focus on office, retail and industrial properties.
 -0- 3/31/93
 /CONTACT: John P. Saldarelli, secretary and treasurer of American Real Estate Partners, L.P., 914-242-7700/
 (ACP)


CO: American Real Estate Partners, L.P. ST: New York IN: FIN SU: ERN

GK-LK -- NY061 -- 1611 03/31/93 15:19 EST
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