AMERICAN REAL ESTATE PARTNERS DECLARES QUARTERLY DISTRIBUTION OF 25 CENTS
AMERICAN REAL ESTATE PARTNERS DECLARES
QUARTERLY DISTRIBUTION OF 25 CENTS
NEW YORK, March 19 /PRNewswire/ -- American Real Estate Partners, L.P. (NYSE: ACP) (AREP) today announced that it has declared a quarterly distribution of 25 cents per depositary unit. A distribution of 50 cents per unit had been made in previous quarters. The 25 cents per unit distribution is payable on May 15, 1992 to holders of record as of the close of business on March 31, 1992.
In making its decision, the board of directors evaluated, among other things, AREP's current and reasonably anticipated cash flow and liquidity needs, debt repayment obligations and reserve requirements. As compared to 1991, cash flow is expected to be adversely affected in 1992, by, among other things the bankruptcy of certain tenants, the expiration of certain tenant leases which is expected to decrease rental income and result in increased expenses necessary to re-lease such properties, and by up to approximately $16 million in balloon mortgage payments coming due, which AREP may not be able to refincnce in their entirety. In 1991, AREP had no ballon mortgage payments. In addition to creating reserves because of such contingencies and the current adverse economic and real estate market conditions, AREP has also determined it is prudent to establish a reserve for the repayment of its approximately $53.6 million unsecured loan obligation. Principal repayments of $10 million begin in 1994 which will then have a negative impact on cash flow.
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.
/CONTACT: John P. Saldarelli, secretary and treasurer of AREP, 914-242-7700/
(ACP) CO: American Real Estate Partners, L.P. ST: New York IN: SU: DIV SM-AH -- NY094 -- 9896 03/19/92 17:40 EST