AMERICAN REAL ESTATE PARTNERS, L.P.
MOUNT KISCO, N.Y., March 19 /PRNewswire/ -- American Real Estate Partners, L.P. (NYSE: ACP) ("AREP)" today announced that it has declared a quarterly distribution of $0.125 per Depositary Unit. A distribution of $0.25 per Depositary Unit had been made in the previous four calendar quarters. The 0.125 per Depositary Unit distribution is payable on May 14, 1993 to holders of record as of the close of business on March 31, 1993. In making its decision, the board of directors evaluated, among other things, AREP's current and reasonably anticipated cash flow and liquidity needs, and its debt repayment obligations and capital funding requirements. Cash flow has been adversely affected by various factors, including the bankruptcy of certain tenants and the expiration of certain tenant leases, which resulted in decreased rental income and increased operating expenses and capital expenditures necessary to re-lease such properties. The real estate market continues to be weak in most areas of the country, and commercial real estate in particular continues to suffer from a combination of oversupply and continuing corporate consolidation, and therefore additional tenant bankruptcies and vacancies can be anticipated. Also, AREP has approximately $3.8 million in maturing balloon mortgages due in 1993, and $15.4 million of such mortgages due in 1994. In addition, a $10 million principal payment is due in 1994 on its unsecured portfolio debt. As of Dec. 31, 1992, the principal amount due on such unsecured debt aggregated approximately $54.7 million. Based on these factors, the board concluded that it was necessary for AREP to increase its reserves in order that funds would be available to meet maturing balloon mortgage obligations, make payments coming due on its unsecured portfolio debt, and pay for capital expenditures and tenant improvements. AREP is continuing to seek opportunities to refinance and sell certain of its properties to generate proceeds for property investments, as AREP believes that the continuing weakness in the real estate market presents opportunities to acquire significantly undervalued properties, thereby enhancing AREP's portfolio and its return on investments. 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- 3/19/93 /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: SU: DIV
AH-OS -- NY009 -- 7801 03/19/93 09:59 EST
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|Date:||Mar 19, 1993|
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