American Real Estate Partners, L.P. Reports Full Year and Fourth Quarter Results and That No Distributions Are Expected To Be Made in 2001

Apr 02, 2001, 01:00 ET from American Real Estate Partners, L.P.

    MOUNT KISCO, N.Y., April 2 /PRNewswire/ -- American Real Estate Partners,
 L.P. ("AREP") (NYSE:   ACP) today reported the following full year and fourth
 quarter financial results:
     For the calendar year 2000, diluted earnings per weighted average limited
 partnership unit outstanding decreased from $1.67 in 1999 to $1.29 in 2000.
 Net gain from property and securities transactions per weighted average
 limited partnership unit outstanding was $.15 in 2000 compared to $.71 in 1999
 primarily due to the 1999 non-recurring gain on the sale of RJR stock. Diluted
 earnings before property and securities transactions  per weighted average
 limited partnership unit outstanding increased from $.96 in 1999 to $1.14 in
 2000.
     Earnings for the calendar year 2000 decreased by $32,579,000 as compared
 to earnings for calendar year 1999 primarily due to the 1999 non-recurring
 gain on the sale of RJR stock and decreased gain on the sales of real estate
 partially offset by the gain on sale of limited partnership interests.
     For the fourth quarter of 2000 diluted earnings per weighted average
 limited partnership unit outstanding increased from $.34 in 1999 to $.38 in
 2000. Net gain from property and securities transactions per weighted average
 limited partnership unit outstanding was $.12 in the fourth quarter of 2000
 compared to $.10 in 1999. Diluted earnings before property and securities
 transactions per weighted average limited partnership unit outstanding
 increased from $.24 in the fourth quarter of 1999 to $.26 in 2000.
     AREP also announced that no distributions are expected to be made in 2001.
 In making its announcement, AREP noted it plans to continue to apply available
 cash flow toward its operations, repayment of  maturing indebtedness, tenant
 requirements and other capital expenditures and for Partnership contingencies
 and reserves, including environmental matters and scheduled lease expirations.
 By the end of the year 2003, net leases representing approximately 14% of
 AREP's net annual rentals from its portfolio will be due for renewal, and by
 the end of the year 2005, approximately 32% 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 2000.
     AREP further stated it continues to believe that excess cash should be
 used to enhance long-term Unitholder value through the improvement of its
 existing assets, the support of AREP's debt and  property obligations, and
 selected investment in assets and companies with assets undervalued by the
 market as appropriate opportunities arise.  AREP believes it should continue
 to diversify its portfolio and that in the real estate area it should seek to
 make acquisitions of land for development and land development companies, and
 other real estate operating companies which may have significant assets under
 development, as well as non-performing loans.
     AREP has made investments in assets related to the gaming industry and
 will consider additional investment opportunities in the gaming and
 entertainment industries.  As previously disclosed, AREP, the General Partner
 and the directors and officers of the General Partner are currently in the
 process of pursuing gaming applications to obtain licenses from the New Jersey
 Casino Control Commission.  Upon approval by the Commission, AREP will
 repurchase its interest in the Sands Hotel and Casino located in Atlantic
 City, New Jersey for approximately $70 million from affiliates of the General
 Partner.
     AREP has also agreed to a going private transaction for Stratosphere
 Tower, Casino and Hotel located in Las Vegas, Nevada.  Pursuant to the
 proposal AREP will purchase all the remaining interests in Stratosphere that
 it does not currently own for approximately $44 million.  Presently, AREP owns
 approximately 51% of Stratosphere.  In addition, AREP has provided financing
 to Stratosphere for expansion of its hotel and related amenities.  AREP has
 agreed to lend up to $100 million to Stratosphere, approximately $50 million
 of which has been funded.
     Investments by AREP in non-real estate related assets may include debt or
 equity securities of companies which may be undergoing recapitalization.
 These types of investments, both real estate and non-real estate related, may
 involve debt restructuring, capital expenditures and active asset  management,
 and by their nature may not be readily financeable and may not generate
 immediate positive cash flow.  As such, they require AREP to maintain a strong
 capital base both to react quickly to these market opportunities as well as to
 allow AREP to rework the assets to enhance their turnaround performance.
 AREP's investment strategy continues to include the reinvestment of capital
 transaction proceeds and refinancing proceeds.
     As previously reported, during the first quarter of 2000, AREP acquired
 the assets of Bayswater Realty and Capital Corp. from affiliates of the
 General Partner, and also acquired an additional 2% interest in the
 Stratosphere Corp., providing AREP with an aggregate interest of approximately
 51% in Stratosphere Corp.  As a result, these companies have been consolidated
 in the financial statements of AREP and prior year financial statements have
 been restated.
     American Real Estate Partners, L.P. is a master limited partnership
 primarily engaged in acquiring and managing real estate investments, with the
 primary focus on office, retail, industrial, hotel, gaming and residential
 properties.
 
                      AMERICAN REAL ESTATE PARTNERS, L.P.
                  REPORTS FULL YEAR AND FOURTH QUARTER RESULTS
           AND THAT NO DISTRIBUTIONS ARE EXPECTED TO BE MADE IN 2001
 
                 In thousands of dollars except per share data
 
 
     Year Ended December 31,                             2000           1999
                                                                  (Restated)
 
     Revenues                                       $ 314,980      $ 295,004
 
     Earnings before property and
     securities transactions                          $66,277        $67,114
 
     Provision for loss on real estate                (1,351)        (1,946)
 
     Gain on sales and disposition
     of real estate                                     6,763         13,971
 
     Gain on sale of limited partnership
     interests                                          3,461             --
 
 
     Gain on sale of marketable equity
     securities                                            --         28,590
 
     Net earnings                                     $75,150       $107,729
 
     Net earnings per L.P. unit:
 
     Basic:
       Earnings before property and
        securities transactions                         $1.30          $1.09
       Net gain from property and
        securities transactions                           .18            .86
 
     Net earnings                                       $1.48          $1.95
 
 
     Weighted average units outstanding            46,098,284     46,098,284
 
     Diluted:
       Earnings before property and
        securities transactions                         $1.14           $.96
       Net gain from property and
        securities transactions                           .15            .71
 
     Net earnings                                       $1.29          $1.67
 
     Weighted average units and equivalent
      units outstanding                            56,157,079     56,078,394
 
 
                      AMERICAN REAL ESTATE PARTNERS, L.P.
                  REPORTS FULL YEAR AND FOURTH QUARTER RESULTS
           AND THAT NO DISTRIBUTIONS ARE EXPECTED TO BE MADE IN 2001
 
 
                 In thousands of dollars except per share data
 
 
     Fourth quarter ended December 31,                   2000           1999
     (unaudited)                                                  (Restated)
 
 
     Revenues                                         $78,694       $ 69,158
 
     Earnings before property and
      securities transactions                          14,475         16,579
 
     Provision for loss on real estate                  (860)          (582)
 
     Gain on sales and disposition
      of real estate                                    4,300          6,214
 
     Gain on sale of limited partnership
      interests                                         3,461             --
 
 
     Net earnings                                     $21,376        $22,211
 
 
     Net earnings per L.P. unit:
 
     Basic:
      Earnings before property and
       securities transactions                           $.30           $.28
      Net gain from property and
       securities transactions                            .14            .12
 
     Net earnings                                        $.44           $.40
 
 
     Weighted average units
      outstanding                                  46,098,284     46,098,284
 
     Diluted:
       Earnings before property and
        securities transactions                          $.26           $.24
       Net gain from property and
        securities transactions                           .12            .10
 
 
     Net earnings                                        $.38          $ .34
 
     Weighted average units and
     equivalent units outstanding                  55,885,220     56,818,325
 
 

SOURCE American Real Estate Partners, L.P.
    MOUNT KISCO, N.Y., April 2 /PRNewswire/ -- American Real Estate Partners,
 L.P. ("AREP") (NYSE:   ACP) today reported the following full year and fourth
 quarter financial results:
     For the calendar year 2000, diluted earnings per weighted average limited
 partnership unit outstanding decreased from $1.67 in 1999 to $1.29 in 2000.
 Net gain from property and securities transactions per weighted average
 limited partnership unit outstanding was $.15 in 2000 compared to $.71 in 1999
 primarily due to the 1999 non-recurring gain on the sale of RJR stock. Diluted
 earnings before property and securities transactions  per weighted average
 limited partnership unit outstanding increased from $.96 in 1999 to $1.14 in
 2000.
     Earnings for the calendar year 2000 decreased by $32,579,000 as compared
 to earnings for calendar year 1999 primarily due to the 1999 non-recurring
 gain on the sale of RJR stock and decreased gain on the sales of real estate
 partially offset by the gain on sale of limited partnership interests.
     For the fourth quarter of 2000 diluted earnings per weighted average
 limited partnership unit outstanding increased from $.34 in 1999 to $.38 in
 2000. Net gain from property and securities transactions per weighted average
 limited partnership unit outstanding was $.12 in the fourth quarter of 2000
 compared to $.10 in 1999. Diluted earnings before property and securities
 transactions per weighted average limited partnership unit outstanding
 increased from $.24 in the fourth quarter of 1999 to $.26 in 2000.
     AREP also announced that no distributions are expected to be made in 2001.
 In making its announcement, AREP noted it plans to continue to apply available
 cash flow toward its operations, repayment of  maturing indebtedness, tenant
 requirements and other capital expenditures and for Partnership contingencies
 and reserves, including environmental matters and scheduled lease expirations.
 By the end of the year 2003, net leases representing approximately 14% of
 AREP's net annual rentals from its portfolio will be due for renewal, and by
 the end of the year 2005, approximately 32% 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 2000.
     AREP further stated it continues to believe that excess cash should be
 used to enhance long-term Unitholder value through the improvement of its
 existing assets, the support of AREP's debt and  property obligations, and
 selected investment in assets and companies with assets undervalued by the
 market as appropriate opportunities arise.  AREP believes it should continue
 to diversify its portfolio and that in the real estate area it should seek to
 make acquisitions of land for development and land development companies, and
 other real estate operating companies which may have significant assets under
 development, as well as non-performing loans.
     AREP has made investments in assets related to the gaming industry and
 will consider additional investment opportunities in the gaming and
 entertainment industries.  As previously disclosed, AREP, the General Partner
 and the directors and officers of the General Partner are currently in the
 process of pursuing gaming applications to obtain licenses from the New Jersey
 Casino Control Commission.  Upon approval by the Commission, AREP will
 repurchase its interest in the Sands Hotel and Casino located in Atlantic
 City, New Jersey for approximately $70 million from affiliates of the General
 Partner.
     AREP has also agreed to a going private transaction for Stratosphere
 Tower, Casino and Hotel located in Las Vegas, Nevada.  Pursuant to the
 proposal AREP will purchase all the remaining interests in Stratosphere that
 it does not currently own for approximately $44 million.  Presently, AREP owns
 approximately 51% of Stratosphere.  In addition, AREP has provided financing
 to Stratosphere for expansion of its hotel and related amenities.  AREP has
 agreed to lend up to $100 million to Stratosphere, approximately $50 million
 of which has been funded.
     Investments by AREP in non-real estate related assets may include debt or
 equity securities of companies which may be undergoing recapitalization.
 These types of investments, both real estate and non-real estate related, may
 involve debt restructuring, capital expenditures and active asset  management,
 and by their nature may not be readily financeable and may not generate
 immediate positive cash flow.  As such, they require AREP to maintain a strong
 capital base both to react quickly to these market opportunities as well as to
 allow AREP to rework the assets to enhance their turnaround performance.
 AREP's investment strategy continues to include the reinvestment of capital
 transaction proceeds and refinancing proceeds.
     As previously reported, during the first quarter of 2000, AREP acquired
 the assets of Bayswater Realty and Capital Corp. from affiliates of the
 General Partner, and also acquired an additional 2% interest in the
 Stratosphere Corp., providing AREP with an aggregate interest of approximately
 51% in Stratosphere Corp.  As a result, these companies have been consolidated
 in the financial statements of AREP and prior year financial statements have
 been restated.
     American Real Estate Partners, L.P. is a master limited partnership
 primarily engaged in acquiring and managing real estate investments, with the
 primary focus on office, retail, industrial, hotel, gaming and residential
 properties.
 
                      AMERICAN REAL ESTATE PARTNERS, L.P.
                  REPORTS FULL YEAR AND FOURTH QUARTER RESULTS
           AND THAT NO DISTRIBUTIONS ARE EXPECTED TO BE MADE IN 2001
 
                 In thousands of dollars except per share data
 
 
     Year Ended December 31,                             2000           1999
                                                                  (Restated)
 
     Revenues                                       $ 314,980      $ 295,004
 
     Earnings before property and
     securities transactions                          $66,277        $67,114
 
     Provision for loss on real estate                (1,351)        (1,946)
 
     Gain on sales and disposition
     of real estate                                     6,763         13,971
 
     Gain on sale of limited partnership
     interests                                          3,461             --
 
 
     Gain on sale of marketable equity
     securities                                            --         28,590
 
     Net earnings                                     $75,150       $107,729
 
     Net earnings per L.P. unit:
 
     Basic:
       Earnings before property and
        securities transactions                         $1.30          $1.09
       Net gain from property and
        securities transactions                           .18            .86
 
     Net earnings                                       $1.48          $1.95
 
 
     Weighted average units outstanding            46,098,284     46,098,284
 
     Diluted:
       Earnings before property and
        securities transactions                         $1.14           $.96
       Net gain from property and
        securities transactions                           .15            .71
 
     Net earnings                                       $1.29          $1.67
 
     Weighted average units and equivalent
      units outstanding                            56,157,079     56,078,394
 
 
                      AMERICAN REAL ESTATE PARTNERS, L.P.
                  REPORTS FULL YEAR AND FOURTH QUARTER RESULTS
           AND THAT NO DISTRIBUTIONS ARE EXPECTED TO BE MADE IN 2001
 
 
                 In thousands of dollars except per share data
 
 
     Fourth quarter ended December 31,                   2000           1999
     (unaudited)                                                  (Restated)
 
 
     Revenues                                         $78,694       $ 69,158
 
     Earnings before property and
      securities transactions                          14,475         16,579
 
     Provision for loss on real estate                  (860)          (582)
 
     Gain on sales and disposition
      of real estate                                    4,300          6,214
 
     Gain on sale of limited partnership
      interests                                         3,461             --
 
 
     Net earnings                                     $21,376        $22,211
 
 
     Net earnings per L.P. unit:
 
     Basic:
      Earnings before property and
       securities transactions                           $.30           $.28
      Net gain from property and
       securities transactions                            .14            .12
 
     Net earnings                                        $.44           $.40
 
 
     Weighted average units
      outstanding                                  46,098,284     46,098,284
 
     Diluted:
       Earnings before property and
        securities transactions                          $.26           $.24
       Net gain from property and
        securities transactions                           .12            .10
 
 
     Net earnings                                        $.38          $ .34
 
     Weighted average units and
     equivalent units outstanding                  55,885,220     56,818,325
 
 SOURCE  American Real Estate Partners, L.P.