AMERICAN REAL ESTATE PARTNERS L P
10-Q/A, 1999-09-09
OPERATORS OF NONRESIDENTIAL BUILDINGS
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                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-Q/A

                                (Amendment No. 2)

(Mark One)

         (X) QUARTERLY  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
             EXCHANGE ACT OF 1934.

For the quarterly period ended            June 30, 1999

                                       OR

         ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
             EXCHANGE  ACT OF 1934

For the  transition  period  from__________________  to____________

                          Commission file number 1-9516

                       AMERICAN REAL ESTATE PARTNERS, L.P.
             (Exact name of registrant as specified in its charter)

                   Delaware                                  13-3398766
- --------------------------------------------------------------------------------
        (State or other jurisdiction of                   (I.R.S. Employer
        incorporation or organization)                  Identification No.)

     100 SOUTH BEDFORD ROAD, MT. KISCO, NY                     10549
   (Address of principal executive offices)                  (Zip Code)

        (Registrant's telephone number,                    (914) 242-7700
             including area code)

     Indicate  by  check mark  whether the registrant (1) has  filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days.                               Yes X No


<PAGE>


     This  Form  10-Q/A  is  being  filed to  correct  a  clerical  error in the
Company's Form 10-Q for the quarter ended June 30, 1999 as originally filed (the
"Initial Form 10-Q"), as follows:

     In the  Consolidated  Balance  Sheets,  appearing  on  pages 1 and 2 of the
Initial Form 10-Q, this Form 10-Q/A corrects the following clerical error:



                           CONSOLIDATED BALANCE SHEETS
                                   (In $000's)
                                                      June 30, 1999
                                                       (unaudited)
                                            ------------------------------------

                                                 AS
                                             ORIGINALLY                AS
LIABILITIES                                    FILED                CORRECTED
                                          -------------------  -----------------
Accounts payable, accrued
   expenses and other liabilities               11,970                10,470
                                          -------------------  -----------------
   Total liabilities                           253,175               251,675
                                          -------------------  -----------------


Total                                        1,180,805             1,179,305
                                          -------------------  -----------------
                                          -------------------  -----------------




<PAGE>


                                   SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

                                       AMERICAN REAL ESTATE PARTNERS, L.P.
                                       By:  American Property Investors, Inc.
                                       General Partner

                                       /s/ John P. Saldarelli
                                       John P. Saldarelli
                                       Treasurer
                                       (Principal Financial Officer
                                       and Principal Accounting Officer)



Date:  September 9, 1999




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