EX-99.4 9 y00603kexv99w4.txt ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K Exhibit 99.4 ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K. (a)(1) Financial Statements: The following financial statements of American Real Estate Partners, L.P. are included in Item 8 (Exhibit 99.3 to this Form 8-K):
Report of Independent Registered Public Accounting Firm .....................F-1 Consolidated Balance Sheets -- December 31, 2003 and 2002....................F-2 Consolidated Statements of Earnings -- Years ended December 31, 2003, 2002 and 2001...................................................................F-3 Consolidated Statements of Changes in Partners' Equity and Comprehensive Income -- Years ended December 31, 2003, 2002, and 2001....................F-4 Consolidated Statements of Cash Flows -- Years ended December 31, 2003, 2002 and 2001..............................................................F-5 Notes to Consolidated Financial Statements...................................F-7
(a)(2) Financial Statement Schedules: Schedule III: Real Estate Owned and Revenues Earned (by tenant or guarantor, as applicable) is included herein. All other Financial Statement schedules have been omitted because the required financial information is not applicable or the information is shown in the Financial Statements or Notes thereto. (a)(3) Exhibits: 3.1 -- Certificate of Limited Partnership of AREP, dated February 17, 1987 (incorporated by reference to AREP's Exhibit 3.1 to Form 10-Q for the quarter ended March 31, 2004, filed on May 10, 2004). 3.2 -- Amended and Restated Agreement of Limited Partnership of AREP, dated as of May 12, 1987 (incorporated by reference to AREP's Exhibit 3.2 to Form 10-Q for the quarter ended March 31, 2004, filed on May 10, 2004). 3.3 -- Amendment No. 1 to the Amended and Restated Agreement of Limited Partnership of AREP (filed as Exhibit 3.3 to AREP's Annual Report on Form 10-K for the year ended December 31, 1994 and incorporated herein by reference). 3.4 -- Certificate of Limited Partnership of American Real Estate Holdings Limited Partnership (the "Subsidiary"), dated February 17, 1987, and amendment thereto, dated March 12, 1987 (incorporated by reference to AREP's Exhibit 3.4 to Form 10-Q for the quarter ended March 31, 2004, filed on May 10, 2004.). 3.5 -- Amended and Restated Agreement of Limited Partnership of the Subsidiary, dated as of July 1, 1987 (incorporated by reference to AREP's Exhibit 3.5 to Form 10-Q for the quarter ended March 31, 2004, filed on May 10, 2004). 3.6 -- Amendment No. 2 to the Amended and Restated Agreement of Limited Partnership of AREP dated as of August 16, 1996 and filed as Exhibit 10.1 to 8-K filed on August 16, 1996 and incorporated herein by reference. 3.7 -- Amendment No. 1 to the Amended and Restated Agreement of Limited Partnership of the Subsidiary dated August 16, 1996 filed as Exhibit 10.2 to the 8-K dated August 16, 1996 and incorporated herein by reference. 3.8 -- Amendment No. 3. To the Amended and Restated Agreement of Limited Partnership of AREP dated May 9, 2002. (Included in the annual report on 10-K for the year ended December 31, 2002 and incorporated herein by reference) 3.9 -- Amendment No. 2 to the Amended and Restated Agreement of Limited Partnership of the Subsidiary IV-1 dated June 14, 2002. (Included in the annual report on 10-K for the year ended December 31, 2002 and incorporated herein by reference) 4.1 -- Depositary Agreement among AREP, the General Partner and Registrar and Transfer Company, dated as of July 1, 1987 (incorporated by reference to AREP's Exhibit 4.1 to Form 10-Q for the quarter ended March 31, 2004, filed on May 10, 2004). 4.2 -- Amendment No. 1 to the Depositary Agreement (filed as Exhibit 4.2 to AREP's Annual Report on Form 10-K for the year ended December 31, 1994 and incorporated herein by reference). 4.3 -- Specimen Depositary Receipt (filed as Exhibit No. 4.2 to AREP's Annual Report on Form 10-K for the year ended December 31, 1987 and incorporated herein by reference). 4.4 -- Form of Transfer Application (filed as Exhibit No. 4.3 to AREP's Annual Report on Form 10-K for the year ended December 31, 1987 and incorporated herein by reference). 4.5 -- Specimen Certificate representing Preferred Units (filed as Exhibit No. 4.9 to AREP's Registration Statement on Form S-3 (Registration No. 33-54767) and incorporated herein by reference). 10.1 -- Nonqualified Unit Option Plan (filed as Exhibit No. 10.1 to AREP's Annual Report on Form 10-K for the year ended December 31, 1987 and incorporated herein by reference). 10.2 -- Distribution Reinvestment Plan (filed as Exhibit No. 10.3 to AREP's Annual Report on Form 10-K for the year ended December 31, 1987 and incorporated herein by reference). 10.10 -- Subscription Guaranty Agreement between AREP and High Coast Limited Partnership (the "Guarantor") (filed as Exhibit 4.10 to AREP's Registration Statement on Form S-3 (Registration No. 33-54767) and incorporated herein by reference). 10.11 -- Registration Rights Agreement between AREP and the Guarantor (filed as Exhibit 4.11 to AREP's Registration Statement on Form S-3 (Registration No. 33-54767) and incorporated herein by reference). 10.12 -- Amended and Restated Agency Agreement (filed as Exhibit 10.12 to AREP's Annual Report on Form 10-K for the year ended December 31, 1994 and incorporated herein by reference). 10.13 -- Subscription Agent Agreement (filed as Exhibit 10.13 to AREP's Annual Report on Form 10-K for the year ended December 31, 1994 and incorporated herein by reference). 10.14 -- Subscription Guaranty Agreement between AREP and the Guarantor (filed as Exhibit 4.10 to Amendment No. 1 to AREP's Registration Statement on Form S-3 (Registration No. 333-31561) and incorporated herein by reference). 10.15 -- Registration Rights Agreement between AREP and the Guarantor (filed as Exhibit 4.11 to Amendment No. 1 to AREP's Registration Statement on Form S-3 (Registration No. 333-31561) and incorporated herein by reference). 10.16 -- Subscription Agent Agreement filed as Exhibit 99.1 to AREP's Registration Statement on Form S-3 (Registration No. 333-31561) and incorporated herein by reference). 10.17 -- Note dated December 27, 2001 from Carl Icahn to American Real Estate Holdings, L.P. in the amount of $250 million and incorporated herein by reference. 10.18 -- Pledge Agreement dated December 27, 2001 between American Real Estate Holdings, L.P. and Carl Icahn and incorporated herein by reference. 10.19 -- Accommodation Pledge Agreement dated December 27, 2001, between American Real Estate Holdings, L.P. and various pledgors and incorporated herein by reference. 16 -- Letter dated September 27, 1991 of Deloitte & Touche regarding change in accountants (filed as Exhibit No. A to AREP's Current Report on Form 8-K dated October 3, 1991 and incorporated herein by reference). 21 -- List of Subsidiaries (incorporated by reference to AREP's Exhibit 21 to Form 10-Q for the quarter ended March 31, 2004, filed on May 10, 2004). 31.1 -- Certification of Chief Executive Officer - pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002. IV-2 31.2 -- Certification of Chief Financial Officer - pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002. 32.1 -- Certification of Principal Executive Officer - pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. 32.2 -- Certification of Principal Financial Officer - pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. 99.1 -- Audit Committee Charter was adopted on March 12, 2004 and is incorporated herein as Exhibit 99.1. 99.2 -- Code of Ethics for Principal Executive Officer and Senior Financial Officers of American Property Investors, Inc. and American Real Estate Partners, L.P. is incorporated herein as Exhibit 99.2. (b) Reports on Form 8-K: (1) A Form 8-K was filed on October 2, 2003 -- American Real Estate Partners, L.P. Acquires Certain Securities of NEG Inc. (2) A Form 8-K was filed on November 14, 2003 -- American Real Estate Partners, L.P. reports Third Quarter and Nine Months Results. (3) A Form 8-K was filed on November 19, 2003 -- American Real Estate Partners, L.P. Comments on Trading Activity. IV-3 SCHEDULE III AMERICAN REAL ESTATE PARTNERS, L.P. a limited partnership Schedule III ------------ REAL ESTATE OWNED AND REVENUES EARNED
No. of Amount of State Locations Encumberances ----- --------- ------------- COMMERCIAL PROPERTY LAND AND BUILDING ------------------------------------- Acme Markets, Inc. and FPBT of Penn. PA 1 Alabama Power Company AL 5 Amer Stores, Eckerd & Marburn NJ 1 Atrium VA 1 $ 18,716,286 Best Products Co., Inc. VA 1 Chesebrough-Pond's Inc. CN 1 Collins Foods International, Inc. OR 3 Collins Foods International, Inc. CA 1 Dillon Companies, Inc. MO 1 Dragon court MA 1 Duke Power Co. NC 1 Easco Corp. NC 1 European American Bank and Trust Co. NY 1 Farwell Bldg. MN 1 First National Supermarkets, Inc. CT 1 19,848,351 Fisher Scientific Company IL 1 Forte Hotels International, Inc. NJ 1 Fox Grocery Company WV 1 Gino's, Inc. MO 1 Gino's, Inc. OH 1 Golf Road IL 1 6,682,664 Grand Union Co. MD 1 Grand Union Co. NY 1 Grand Union Co. VA 1 Whalen NY 1 Gunite IN 1 G.D. Searle & Co. IL 1 G.D. Searle & Co. MN 1 G.D. Searle & Co. IL 1 Integra A Hotel and Restaurant Co. AL 1 Integra A Hotel and Restaurant Co. AL 1 Integra A Hotel and Restaurant Co. IL Integra A Hotel and Restaurant Co. IN 1 Integra A Hotel and Restaurant Co. OH 1 Integra A Hotel and Restaurant Co. MO 1 Integra A Hotel and Restaurant Co. TX 1 Integra A Hotel and Restaurant Co. MI 1 Intermountain Color KY 1 J.C. Penney Company, Inc. MA 1 Kings buffet FL 1 K-Mart Corporation LA 1 K-Mart Corporation WI 1 K-Mart Corporation MN 1 K-Mart Corporation FL 1 K-Mart Corporation IA 1 K-Mart Corporation FL 1 K-Mart Corporation FL 1 K-Mart Corporation IL 1 Kobacker Stores, Inc. MI 2 Kobacker Stores, Inc. KY 1 Kobacker Stores, Inc. OH 4 Landmark Bancshares Corporation MO 1 Levitz Furniture Corporation NY 1 Louisiana Power and Light Company LA 6 Louisiana Power and Light Company LA 7 Marsh Supermarkets, Inc. IN 1 Mid-South TN 1 12,700,000 Montgomery Ward, Inc. PA 1 Montgomery Ward, Inc. NJ 1 Morrison, Inc. AL 1
Part 1 - Real estate owned at December 31, 2003 - Accounted for under the: -------------------------------------------------------------------------- Operating Method ---------------- Rent due Amount and accrued Carried or received Initial Cost Cost of at close Reserve for in advance at to Company Improvements of period Depreciation end of period -------------- ------------ --------------- ------------ ------------- COMMERCIAL PROPERTY LAND AND BUILDING ------------------------------------- Acme Markets, Inc. and FPBT of Penn. $ 2,004,393 $ 165,714 $ 2,170,107 $1,560,784 $14,736 Alabama Power Company Amer Stores, Eckerd & Marburn 2,045,641 2,045,641 (2) 1,632,403 Atrium 27,921,246 8,627 27,929,873 (2) 2,293,391 Best Products Co., Inc. 3,303,553 73,262 3,376,815 128,769 (25,833) Chesebrough-Pond's Inc. 1,549,805 1,549,805 (4) 1,191,062 (11,770) Collins Foods International, Inc. 250,812 250,812 (2) 16,352 Collins Foods International, Inc. 134,253 134,253 (2) 9,289 Dillon Companies, Inc. 546,681 546,681 382,676 (11,217) Dragon court 3,700,000 44,706 3,744,706 176,368 Duke Power Co. 3,464,225 3,464,225 344,114 Easco Corp. 157,560 888,452 1,046,012 44,423 European American Bank and Trust Co. 1,355,210 1,355,210 (2) 1,284,888 Farwell Bldg. 5,081,105 5,081,105 (4) 2,595,341 First National Supermarkets, Inc. Fisher Scientific Company 597,806 597,806 (2) 276,722 13,583 Forte Hotels International, Inc. Fox Grocery Company Gino's, Inc. Gino's, Inc. 314,012 314,012 22,415 Golf Road 9,288,263 11,591 9,299,854 (2) 1,395,053 Grand Union Co. Grand Union Co. 874,765 874,765 83,272 Grand Union Co. 266,468 266,468 (2) 200,472 Whalen 7,934,020 7,934,020 (2) 226,925 670 Gunite 1,134,565 1,134,565 (2) 1,065,034 G.D. Searle & Co. G.D. Searle & Co. 339,358 339,358 169,939 G.D. Searle & Co. 323,559 323,559 (2) 250,581 Integra A Hotel and Restaurant Co. 434,056 434,056 (4) 9,422 Integra A Hotel and Restaurant Co. 458,428 458,428 4,658 Integra A Hotel and Restaurant Co. Integra A Hotel and Restaurant Co. 443,249 443,249 (4) 4,235 1,082 Integra A Hotel and Restaurant Co. 204,192 204,192 (2) 4,082 Integra A Hotel and Restaurant Co. 414,887 414,887 9,503 Integra A Hotel and Restaurant Co. 438,097 438,097 10,465 Integra A Hotel and Restaurant Co. 431,486 431,486 (2) 9,851 1,219 Intermountain Color 560,444 560,444 523,715 J.C. Penney Company, Inc. 2,484,262 2,484,262 1,987,410 (20,854) Kings buffet 910,425 910,425 21,401 (279) K-Mart Corporation K-Mart Corporation K-Mart Corporation K-Mart Corporation K-Mart Corporation K-Mart Corporation 2,636,000 2,636,000 (2) 1,899,765 K-Mart Corporation K-Mart Corporation 600,000 600,000 15,866 Kobacker Stores, Inc. 112,225 112,225 1,068 Kobacker Stores, Inc. 88,364 88,364 769 Kobacker Stores, Inc. 298,496 298,496 2,487 Landmark Bancshares Corporation Levitz Furniture Corporation Louisiana Power and Light Company 5,636,053 5,636,053 483,544 Louisiana Power and Light Company 6,984,806 6,984,806 553,118 Marsh Supermarkets, Inc. 5,001,933 5,001,933 3,097,560 Mid-South 18,226,344 18,226,344 (2) 642,413 Montgomery Ward, Inc. 3,289,166 3,289,166 (4) 2,290,820 Montgomery Ward, Inc. 1,178,030 1,178,030 (4) 12,812 Morrison, Inc. 858,112 858,112 21,353
Part 2 - Revenues earned for the Year ended December 31, 2003 -------------------------------- Financing Method ---------------- Minimum lease Expended payments due Total for interest, and accrued revenue taxes, Net income Net at end applicable repairs and applicable Investment of period to period expenses to period ------------ ------------- -------------- -------------- --------------- COMMERCIAL PROPERTY LAND AND BUILDING ------------------------------------- Acme Markets, Inc. and FPBT of Penn. $ 224,856 $ 125,712 $ 99,144 Alabama Power Company $ 4,849,942 557,828 0 557,828 Amer Stores, Eckerd & Marburn 565,214 36,898 528,316 Atrium 4,107,462 3,166,166 941,296 Best Products Co., Inc. 232,500 379,156 (146,656) Chesebrough-Pond's Inc. 141,236 9,094 132,142 Collins Foods International, Inc. 32,489 4,088 28,401 Collins Foods International, Inc. 17,646 2,817 14,829 Dillon Companies, Inc. 26,956 9,016 17,940 Dragon court 143,148 748,277 (605,129) Duke Power Co. 797,177 115,171 682,006 Easco Corp. 321,000 58,490 262,510 European American Bank and Trust Co. 175,000 36 174,964 Farwell Bldg. 1,151,819 313,290 838,529 First National Supermarkets, Inc. 19,815,365 1,856,505 874,730 981,775 Fisher Scientific Company 163,000 22,286 140,714 Forte Hotels International, Inc. 5,352,110 494,512 0 494,512 Fox Grocery Company 2,128,666 196,007 450 195,557 Gino's, Inc. 0 0 Gino's, Inc. 51,733 5,604 46,129 Golf Road 943,033 817,663 125,370 Grand Union Co. 0 0 0 Grand Union Co. 108,000 20,840 87,160 Grand Union Co. 24,150 4,464 19,686 Whalen 30,700 1,035,623 (1,004,923) Gunite 0 68,419 (68,419) G.D. Searle & Co. 0 447 (447) G.D. Searle & Co. 37,000 2,562 34,438 G.D. Searle & Co. 47,080 4,516 42,564 Integra A Hotel and Restaurant Co. 108,549 7,537 101,012 Integra A Hotel and Restaurant Co. 145,211 4,659 140,552 Integra A Hotel and Restaurant Co. 87,925 (3) 4,591 (3) 83,334 (3) Integra A Hotel and Restaurant Co. 131,038 4,600 126,438 Integra A Hotel and Restaurant Co. 82,000 3,266 78,734 Integra A Hotel and Restaurant Co. 91,818 7,919 83,899 Integra A Hotel and Restaurant Co. 103,960 11,942 92,018 Integra A Hotel and Restaurant Co. 149,589 10,134 139,455 Intermountain Color 98,422 7,968 90,454 J.C. Penney Company, Inc. 250,244 1,709 248,535 Kings buffet 103,161 37,478 65,683 K-Mart Corporation 0 24,295 (24,295) K-Mart Corporation 0 (119,468) 119,468 K-Mart Corporation 0 111,970 (111,970) K-Mart Corporation 0 8,713 (8,713) K-Mart Corporation 1,046,571 100,422 3,037 97,385 K-Mart Corporation 251,420 13,511 237,909 K-Mart Corporation 113,793 (3) 18,207 (3) 95,586 (3) K-Mart Corporation 58,582 41,145 17,437 Kobacker Stores, Inc. 123,964 $2,412 25,733 111 25,622 Kobacker Stores, Inc. 70,860 1,115 16,480 1,505 14,975 Kobacker Stores, Inc. 299,721 5,531 59,157 0 59,157 Landmark Bancshares Corporation 3,609,872 521,813 317 521,496 Levitz Furniture Corporation 0 0 0 Louisiana Power and Light Company 1,240,853 161,703 1,079,150 Louisiana Power and Light Company 1,299,275 174,703 1,124,572 Marsh Supermarkets, Inc. 506,300 131,844 374,456 Mid-South 1,684,918 1,306,639 378,279 Montgomery Ward, Inc. 314,280 29,294 284,986 Montgomery Ward, Inc. 193,586 12,930 180,656 Morrison, Inc. 0 77,996 (77,996)
S-1 AMERICAN REAL ESTATE PARTNERS, L.P. a limited partnership Schedule III ------------ REAL ESTATE OWNED AND REVENUES EARNED
No. of Amount of State Locations Encumberances ----- --------- ------------- Morrison, Inc. GA 1 Morrison, Inc. VA 2 North Carolina National Bank SC 2 Occidental Petroleum Corp. CA 1 Ohio Power Co. Inc. OH 1 Park West KY 1 11,740,990 Park West UPS KY 1 17,605,571 Penske Corp. OH 1 Pneumo Corp. OH 1 Portland General Electric Company OR 1 33,628,639 Rayovac WI 1 15,415,558 Rouse Company MD 1 Safeway Stores, Inc. LA 1 Sams MI 1 Smith's Management Corp. NV 1 Southland Corporation FL 4 Southland Corporation FL 1 Staples NY 1 Stone Container WI 1 5,824,491 Stop & Shop NY 1 Stop & Shop NJ 1 Stop 'N Shop Co., Inc. VA 1 Super Foods Services, Inc. MI 1 4,327,290 SuperValu Stores, Inc. MN 1 SuperValu Stores, Inc. OH 1 SuperValu Stores, Inc. GA 1 SuperValu Stores, Inc. IN 1 Telecom Properties, Inc. OK 1 Telecom Properties, Inc. KY 1 The A&P Company MI 1 The TJX Companies, Inc. IL 1 Tire Distribution Systems Inc. TN 1 Tops Market NY 1 Toys "R" Us, Inc. TX 1 Waban NY 1 Watkins MO 1 Webcraft Technologies MD 1 Wetterau, Inc. PA 1 Wetterau, Inc. NJ 1 Wickes Companies, Inc. CA 1 RESIDENTIAL PROPERTY LAND AND BUILDING -------------------------------------- Crown Cliffs AL 1 7,233,108 COMMERCIAL PROPERTY - LAND -------------------------- Foodarama supermarkets, Inc. NY 1 Foodarama supermarkets, Inc. PA 1 Gino's, Inc. PA 1 Gino's, Inc. MA 1 Gino's, Inc. NJ 1 J.C. Penney Company, Inc. NY 1 COMMERCIAL PROPERTY - BUILDING ------------------------------ AT&T CA 1 Bank of America GA 1
Part 1 - Real estate owned at December 31, 2003 - Accounted for under the: -------------------------------------------------------------------------- Operating Method ---------------- Rent due Amount and accrued Carried or received Initial Cost Cost of at close Reserve for in advance at to Company Improvements of period Depreciation end of period -------------- ------------ --------------- ------------ ------------- Morrison, Inc. Morrison, Inc. 1,765,899 1,765,899 47,355 North Carolina National Bank 1,450,047 1,450,047 646,536 10,092 Occidental Petroleum Corp. Ohio Power Co. Inc. Park West 19,199,296 19,199,296 (2) 2,793,207 Park West UPS 21,109,367 21,109,367 (2) 2,479,441 (1,000) Penske Corp. 524,956 524,956 19,525 (9,533) Pneumo Corp. 1,629,713 1,629,713 68,492 Portland General Electric Company Rayovac 22,065,852 22,065,852 (2) 2,243,143 Rouse Company Safeway Stores, Inc. 1,782,885 1,782,885 (4) 1,134,894 Sams 8,844,225 8,844,225 2,340,082 Smith's Management Corp. Southland Corporation 862,367 862,367 513,035 Southland Corporation Staples 2,391,540 2,391,540 (2) 265,276 Stone Container 9,028,574 9,028,574 1,287,134 Stop & Shop 900,865 900,865 83,272 Stop & Shop 800,770 800,770 74,021 Stop 'N Shop Co., Inc. 2,158,099 2,158,099 57,647 Super Foods Services, Inc. SuperValu Stores, Inc. SuperValu Stores, Inc. SuperValu Stores, Inc. SuperValu Stores, Inc. Telecom Properties, Inc. Telecom Properties, Inc. 340,321 340,321 1,181 The A&P Company 999,172 999,172 13,041 The TJX Companies, Inc. Tire Distribution Systems Inc. 120,946 120,946 (4) 75,200 Tops Market 262,357 262,357 24,249 (15,726) Toys "R" Us, Inc. Waban 8,478,095 8,478,095 (2) 1,164,396 Watkins Webcraft Technologies Wetterau, Inc. (4) Wetterau, Inc. 747,116 747,116 32,088 Wickes Companies, Inc. 700,333 700,333 (4) 195,738 (4,533) RESIDENTIAL PROPERTY LAND AND BUILDING -------------------------------------- Crown Cliffs 11,457,646 93,253 11,550,899 (1) 3,662,776 COMMERCIAL PROPERTY - LAND -------------------------- Foodarama supermarkets, Inc. 140,619 140,619 (2) Foodarama supermarkets, Inc. 112,554 112,554 (2) 1,200 Gino's, Inc. 36,271 36,271 (2) Gino's, Inc. 50,904 50,904 (2) Gino's, Inc. 61,050 61,050 (2) J.C. Penney Company, Inc. 51,009 51,009 (4) 458 COMMERCIAL PROPERTY - BUILDING ------------------------------ AT&T 2,546,139 23,566 2,569,705 (4) 82,237 Bank of America
Part 2 - Revenues earned for the Year ended December 31, 2003 -------------------------------- Financing Method ---------------- Minimum lease Expended payments due Total for interest, and accrued revenue taxes, Net income Net at end applicable repairs and applicable Investment of period to period expenses to period ----------- ------------- -------------- -------------- --------------- Morrison, Inc. 183,360 0 183,360 Morrison, Inc. 0 84,818 (84,818) North Carolina National Bank 69,476 69,670 (194) Occidental Petroleum Corp. 0 1,228 (1,228) Ohio Power Co. Inc. 3,221,531 114,600 305,332 0 305,332 Park West 1,559,346 1,473,397 85,949 Park West UPS 1,959,010 1,734,716 224,294 Penske Corp. 63,551 44,467 19,084 Pneumo Corp. 243,750 54,793 188,957 Portland General Electric Company 46,892,351 (414,424) 4,074,139 2,685,000 1,389,139 Rayovac 1,993,330 1,786,171 207,159 Rouse Company 359,392 134,037 225,355 Safeway Stores, Inc. 85,150 11,974 73,176 Sams 1,245,569 161,517 1,084,052 Smith's Management Corp. 32,531 9,856 22,675 Southland Corporation 100,359 3,748 96,611 Southland Corporation 9,993 (3) 330 (3) 9,663 (3) Staples 352,729 120,169 232,560 Stone Container 885,334 678,909 206,425 Stop & Shop 108,000 20,818 87,182 Stop & Shop 96,000 18,505 77,495 Stop 'N Shop Co., Inc. 109,255 179,573 (70,318) Super Foods Services, Inc. 8,670,045 931,980 396,831 535,149 SuperValu Stores, Inc. 0 0 0 SuperValu Stores, Inc. 0 0 0 SuperValu Stores, Inc. 0 3,430 (3,430) SuperValu Stores, Inc. 72,678 14,354 58,324 Telecom Properties, Inc. (252) 3,654 (3,906) Telecom Properties, Inc. 34,672 6,763 27,909 The A&P Company 77,851 106,413 (28,562) The TJX Companies, Inc. 29,575 5,996 23,579 Tire Distribution Systems Inc. 13,200 0 13,200 Tops Market 31,453 6,277 25,176 Toys "R" Us, Inc. 0 136,637 (136,637) Waban 795,285 196,043 599,242 Watkins 0 0 0 Webcraft Technologies 0 (22,313) 22,313 Wetterau, Inc. 0 45,072 (45,072) Wetterau, Inc. 150,800 25,788 125,012 Wickes Companies, Inc. 145,452 38,825 106,627 RESIDENTIAL PROPERTY LAND AND BUILDING -------------------------------------- Crown Cliffs 2,000,409 1,871,243 129,166 COMMERCIAL PROPERTY - LAND -------------------------- Foodarama supermarkets, Inc. 16,800 0 16,800 Foodarama supermarkets, Inc. 14,400 0 14,400 Gino's, Inc. 8,571 0 8,571 Gino's, Inc. 8,571 0 8,571 Gino's, Inc. 8,571 0 8,571 J.C. Penney Company, Inc. 5,500 0 5,500 COMMERCIAL PROPERTY - BUILDING ------------------------------ AT&T 449,548 247,906 201,642 Bank of America 2,798,908 40,573 292,259 26,584 265,675
S-2 AMERICAN REAL ESTATE PARTNERS, LP a limited partnership Schedule III ------------ REAL ESTATE OWNED AND REVENUES EARNED
No. of Amount of State Locations Encumberances ----- --------- ------------- Baptist Hospital 1 TN 1 19,885,664 Baptist Hospital 2 TN 1 7,380,651 Harwood Square IL 1 Safeway Stores, Inc. CA 1 Toys "R" Us, Inc. RI 1 United Life & Accident Ins. Co. NH 1 Wickes Companies, Inc. PA 1 ------------- 180,989,263 ------------- HOTEL AND RESORT OPERATING PROPERTIES ------------------------------------- New Seabury MA Holiday Inn FL Bayswater FL ------------- 0 ------------- LESS HELD FOR SALE (82,861,069) ------------------ ------------- $ 98,128,194 =============
Part 1 - Real estate owned at December 31, 2003 - Accounted for under the: -------------------------------------------------------------------------- Operating Method ---------------- Rent due Amount and accrued Carried or received Initial Cost Cost of at close Reserve for in advance at to Company Improvements of period Depreciation end of period -------------- ------------ --------------- ------------ ------------- Baptist Hospital 1 Baptist Hospital 2 Harwood Square 6,943,373 800 6,944,173 (4) 4,186,890 29,900 Safeway Stores, Inc. 558,652 558,652 558,652 Toys "R" Us, Inc. United Life & Accident Ins. Co. Wickes Companies, Inc. ------------ ---------- ------------ ----------- -------- 252,397,367 1,309,971 253,707,338 51,001,774 (23,481) ------------ ---------- ------------ ----------- -------- HOTEL AND RESORT OPERATING PROPERTIES ------------------------------------- New Seabury 37,490,989 (403,250) 37,087,739 6,704,739 Holiday Inn 11,103,847 365,123 11,468,970 (4) 5,104,068 280,213 Bayswater 5,310,365 5,310,365 531,855 ------------ ---------- ------------ ----------- -------- 53,905,201 (38,127) 53,867,074 12,340,662 280,213 ------------ ---------- ------------ ----------- -------- LESS HELD FOR SALE (146,395,413) (20,218) (146,415,631) (20,152,684) ------------------ ------------ ---------- ------------ ----------- -------- $159,907,155 $1,251,626 $161,158,781 $43,189,752 $256,732 ============ ========== ============ =========== ========
Part 2 - Revenues earned for the Year ended December 31, 2003 -------------------------------- Financing Method ---------------- Minimum lease Expended payments due Total for interest, and accrued revenue taxes, Net income Net at end applicable repairs and applicable Investment of period to period expenses to period ------------ ------------- -------------- ------------- --------------- Baptist Hospital 1 23,438,376 1,105,517 1,862,951 1,574,065 288,886 Baptist Hospital 2 8,726,374 410,319 691,443 583,409 108,034 Harwood Square 790,838 246,064 544,774 Safeway Stores, Inc. 26,900 495 26,405 Toys "R" Us, Inc. 797,816 10,430 77,173 0 77,173 United Life & Accident Ins. Co. 3,165,914 274,017 950 273,067 Wickes Companies, Inc. 2,347,187 467,454 0 467,454 ------------ ---------- ----------- ----------- ----------- 137,355,573 1,276,073 43,298,285 24,714,252 18,584,033 ------------ ---------- ----------- ----------- ----------- HOTEL AND RESORT OPERATING PROPERTIES ------------------------------------- New Seabury 11,678,516 10,996,669 681,847 Holiday Inn 3,911,515 3,253,372 658,143 Bayswater 2,914,000 2,789,000 125,000 ------------ ---------- ----------- ----------- ----------- 0 0 18,504,031 17,039,041 1,464,990 ------------ ---------- ----------- ----------- ----------- LESS HELD FOR SALE (22,459,690) (16,320,692) (6,138,998) ------------------ ------------ ---------- ----------- ----------- ----------- $137,355,573 $1,276,073 $39,342,626 $25,432,601 $13,910,025 ============ ========== =========== =========== ===========
---------- (1) The Company owns a 70% interest in the joint venture which owns this property. (2) Such properties are being classified as held for sale at 12/31/03. (3) Sold in 2003 and included in discontinued ops. (4) Such properties have been reclassified to held for sale during the quarter ended March 31, 2004. As a result, for the year ended December 31, 2003, such operating lease and hotel and resort operating revenues, expenses and net income have been reclassified to discontinued operations. S-3 SCHEDULE III AMERICAN REAL ESTATE PARTNERS, L.P. AND SUBSIDIARIES REAL ESTATE OWNED AND REVENUES EARNED YEAR ENDED DECEMBER 31, 2003 (IN $000'S) 1a. A reconciliation of the total amount at which real estate owned, accounted for under the operating method and hotel and resort operating properties and development properties, was carried at the beginning of the period, with the total at the close of the period, is shown below: Balance -- January 1, 2003................................. $ 303,460 Additions during period.................................... 1,675 Reclassifications during period from financing leases...... 5,065 Reclassifications during period to held for sale........... (146,416) Disposals during period.................................... (2,626) ----------- Balance December 31, 2003.................................. $ 161,158 ===========
b. A reconciliation of the total amount of accumulated depreciation at the beginning of the period, with the total at the close of the period, is shown below: Balance -- January 1, 2003...................................$ 54,978 Depreciation during period................................... 8,605 Reclassifications during period to held for sale............. (20,153) Disposals during period...................................... (240) ----------- Balance -- December 31, 2003.................................$ 43,190 ===========
Depreciation on properties accounted for under the operating method is computed using the straight-line method over the estimated useful life of the particular property or property components, which range from 5 to 45 years. 2. A reconciliation of the total amount at which real estate owned, accounted for under the financing method, was carried at the beginning of the period, with the total close of the period, is shown below: Balance -- January 1, 2003...................................$ 155,458 Reclassifications during period to operating properties...... (5,065) Disposals during period...................................... (7,708) Amortization of unearned income.............................. 13,115 Minimum lease rentals received............................... (18,444) ----------- Balance -- December 31, 2003.................................$ 137,356 ===========
3. The aggregate cost of real estate owned for Federal income tax purposes is $377,539 before accumulated depreciation. S-4 SCHEDULE III AMERICAN REAL ESTATE PARTNERS, L.P. AND SUBSIDIARIES REAL ESTATE OWNED AND REVENUES EARNED -- (CONTINUED) YEAR ENDED DECEMBER 31, 2003 (IN $000'S) 4. Net income applicable to the period in Schedule III is reconciled with net earnings as follows: Net income applicable to financing and operating leases and hotel and resort operating properties........................................................................... $ 13,910 Net income applicable to Stratosphere hotel and casino.................................. 22,716(1) Net income applicable to land, house and condominium sales.............................. 4,136 Net income applicable to NEG, Inc....................................................... 19,522(2) Add: Interest income on U.S. Government and Agency Obligations and other investments........................................................................ 22,543 Dividend and unallocated other income................................................ 3,027 --------- 85,854 --------- Deduct expenses not allocated: General and administrative expenses.................................................. 6,850 Nonmortgage interest expense......................................................... 2,449 Equity in losses of GB Holdings, Inc................................................. 3,466 Other................................................................................ 3,703 --------- 16,468 --------- Operating income after income taxes..................................................... 69,386 Provision for loss on real estate....................................................... (750) Gain on sale of real estate............................................................. 7,121 Loss on sale of securities.............................................................. (961) Write-down of securities................................................................ (18,798) Write-down of mortgages and notes receivable............................................ 2,607 --------- Income from continuing operations....................................................... 58,605 Discontinued Operations: Income from discontinued operations.................................................. 6,139 Net gain on property transactions.................................................... 3,353 --------- Earnings from discontinued operations................................................... 9,492 --------- Net earnings......................................................................... $ 68,097 =========
-------------- (1) Includes depreciation expense of $12,276 and income tax benefit of $6,720. (2) Includes income tax expense of $225. S-5 SCHEDULE III AMERICAN REAL ESTATE PARTNERS, L.P. AND SUBSIDIARIES REAL ESTATE OWNED AND REVENUES EARNED YEAR ENDED DECEMBER 31, 2002 (IN $000'S) 1a. A reconciliation of the total amount at which real estate owned, accounted for under the operating method and hotel and resort operating properties, was carried at the beginning of the period, with the total at the close of the period, is shown below: Balance -- January 1, 2002................................ $ 273,887 Additions during period................................... 20,886 Reclassifications during period from financing leases..... 13,503 Write downs............................................... (1,992) Disposals during period................................... (2,824) ---------- Balance -- December 31, 2002.............................. $ 303,460 ==========
b. A reconciliation of the total amount of accumulated depreciation at the beginning of the period, with the total at the close of the period, is shown below: Balance -- January 1, 2002................................ $ 48,057 Depreciation during period................................ 7,105 Disposals during period................................... (184) ---------- Balance -- December 31, 2002.............................. $ 54,978 =========
Depreciation on properties accounted for under the operating method is computed using the straight-line method over the estimated useful life of the particular property or property components, which range from 7 to 45 years. 2. A reconciliation of the total amount at which real estate owned, accounted for under the financing method, was carried at the beginning of the period, with the total close of the period, is shown below: Balance -- January 1, 2002............................ $ 176,757 Reclassifications during period....................... (13,503) Write downs........................................... (257) Disposals during period............................... (1,560) Amortization of unearned income....................... 14,722 Minimum lease rentals received........................ (20,663) Other................................................. (38) ---------- Balance -- December 31, 2002.......................... $ 155,458 ==========
3. The aggregate cost of real estate owned for Federal income tax purposes is $382,208 before accumulated depreciation. S-6 SCHEDULE III AMERICAN REAL ESTATE PARTNERS, L.P. AND SUBSIDIARIES REAL ESTATE OWNED AND REVENUES EARNED -- (CONTINUED) YEAR ENDED DECEMBER 31, 2002 (IN $000'S) 4. Net income applicable to the period in Schedule III is reconciled with net earnings as follows: Net income applicable to financing and operating leases and hotel and resort operating properties............................................................................ $ 14,128 Net income applicable to Stratosphere hotel and casino................................... 8,916(1) Net income applicable to land, house and condominium sales............................... 20,384 Net income applicable to NEG Inc......................................................... 9,415(2) Add: Interest income on U.S. Government and Agency Obligations and other investments..... 30,344 Dividend and unallocated other income............................................... 2,684 Equity in earnings of GB Holdings, Inc.............................................. 305 --------- 86,176 --------- Deduct expenses not allocated: General and administrative expenses................................................. 7,029 Non-mortgage interest expense....................................................... 1,272 Other............................................................................... 1,625 --------- 9,926 --------- Operating income after income taxes...................................................... 76,250 Provision for loss on real estate........................................................ (3,212) Gain on sale of real estate.............................................................. 8,990 Write down of securities................................................................. (12,226) Minority interest in net earnings of Stratosphere Corporation............................ (1,943) --------- Income from continuing operations........................................................ 67,859 Discontinued Operations: Income from discontinued operations................................................. 6,007 --------- Net earnings........................................................................ $ 73,866 =========
-------------- (1) Includes depreciation expense of $13,328 and income tax expense of $2,412. (2) Includes income tax expense of $5,068. S-7 SCHEDULE III AMERICAN REAL ESTATE PARTNERS, L.P. AND SUBSIDIARIES REAL ESTATE OWNED AND REVENUES EARNED YEAR ENDED DECEMBER 31, 2001 (IN $000'S) 1a. A reconciliation of the total amount at which real estate owned, accounted for under the operating method and hotel and resort operating properties, was carried at the beginning of the period, with the total at the close of the period, is shown below: Balance -- January 1, 2001............................................ $ 262,356 Additions during period............................................... 14,586 Reclassifications during period from financing leases................. 9,755 Write downs........................................................... (3,184) Reclassifications during period to assets held for sale............... (8,072) Other reclassifications............................................... (1,130) Disposals during period............................................... (424) ---------- Balance -- December 31, 2001.......................................... $ 273,887 ==========
b. A reconciliation of the total amount of accumulated depreciation at the beginning of the period, with the total at the close of the period, is shown below: Balance -- January 1, 2001............................................ $ 43,471 Depreciation during period............................................ 6,252 Disposals during period............................................... (266) Reclassifications during period to assets held for sale............... (1,400) --------- Balance -- December 31, 2001.......................................... $ 48,057 =========
Depreciation on properties accounted for under the operating method is computed using the straight-line method over the estimated life of the particular property or property components, which range from 5 to 45 years. 2. A reconciliation of the total amount at which real estate owned, accounted for under the financing method, was carried at the beginning of the period, with the total at the close of the period, is shown below: Balance -- January 1, 2001............................................ $ 193,428 Reclassifications during period to operating properties............... (9,755) Disposals during period............................................... (71) Amortization of unearned income....................................... 16,935 Minimum lease rentals received........................................ (23,780) ---------- Balance -- December 31, 2001.......................................... $ 176,757 ==========
3. The aggregate cost of real estate owned for Federal income tax purposes is $399,813 before accumulated depreciation. S-8 SCHEDULE III AMERICAN REAL ESTATE PARTNERS, L.P. AND SUBSIDIARIES REAL ESTATE OWNED AND REVENUES EARNED -- (CONTINUED) YEAR ENDED DECEMBER 31, 2001 (IN $000'S) 4. Net income applicable to the period in Schedule III is reconciled with net earnings as follows: Net income applicable to financing and operating leases and hotel and resort operating properties........................................................................... $ 15,733 Net income applicable to Stratosphere hotel and casino.................................. 4,628(1) Net income applicable to land, house and condominium sales.............................. 12,967 Net income applicable to NEG, Inc....................................................... 37,300(2) Add: Interest income on U.S. Government and Agency Obligations and other investments.... 30,367 Dividend and unallocated other income.............................................. 4,989 Equity in earnings of GB Holdings, Inc............................................. 1,807 --------- 107,791 --------- Deduct expenses not allocated: General and administrative expenses................................................ 7,080 Non-mortgage interest expense...................................................... 5,306 Other.............................................................................. 1,540 --------- 13,926 --------- Operating income after income taxes..................................................... 93,865 Provision for loss on real estate....................................................... (3,184) Gain on sale of marketable equity and debt securities................................... 6,749 Gain on sale of real estate............................................................. 1,737 Minority interest in net earnings of Stratosphere Corporation........................... (450) --------- Income from continuing operations....................................................... 98,717 Discontinued Operations: Income from discontinued operations................................................ 6,117 --------- Net Earnings............................................................................ $ 104,834 =========
-------------- (1) Includes depreciation expense of $11,257 and income tax expense of $513. (2) Includes depreciation expense of $6,163 and income tax benefit of $30,590. S-9 SCHEDULE III AMERICAN REAL ESTATE PARTNERS, L.P. AND SUBSIDIARIES REAL ESTATE OWNED AND RESERVE FOR DEPRECIATION BY STATE (ACCOUNTED FOR UNDER THE OPERATING METHOD) DECEMBER 31, 2003 (IN $000'S)
AMOUNT AT WHICH CARRIED AT RESERVE FOR STATE CLOSE OF YEAR DEPRECIATION ----- --------------- ------------ Alabama..................................... $ 13,301 $ 3,698 California.................................. 3,829 837 Connecticut................................. 1,550 1,191 Florida..................................... 18,553 5,636 Illinois.................................... 7,544 4,203 Indiana..................................... 5,445 3,633 Kentucky.................................... 989 525 Louisiana................................... 14,404 2,172 Massachusetts............................... 43,317 8,869 Michigan.................................... 9,956 2,353 Minnesota................................... 5,420 2,765 Missouri.................................... 962 392 New Jersey.................................. 2,726 119 New York.................................... 2,088 190 North Carolina.............................. 4,510 389 Ohio........................................ 2,767 111 Pennsylvania................................ 5,459 3,852 South Carolina.............................. 1,450 647 Tennessee................................... 121 76 Texas....................................... 438 10 Virginia.................................... 7,301 234 Wisconsin................................... 9,029 1,288 --------- --------- $ 161,159 $ 43,190 ========= =========
S-10 SCHEDULE III AMERICAN REAL ESTATE PARTNERS, L.P. AND SUBSIDIARIES REAL ESTATE OWNED BY STATE (ACCOUNTED FOR UNDER THE FINANCING METHOD) DECEMBER 31, 2003 (IN $000'S)
NET STATE INVESTMENT ----- ---------- Alabama......................................................... $ 4,850 Connecticut..................................................... 19,815 Georgia......................................................... 2,799 Iowa............................................................ 1,047 Kentucky........................................................ 71 Michigan........................................................ 8,794 Missouri........................................................ 3,610 New Hampshire................................................... 3,166 New Jersey...................................................... 5,352 Ohio............................................................ 3,521 Oregon.......................................................... 46,892 Pennsylvania.................................................... 2,347 Rhode Island.................................................... 798 Tennessee....................................................... 32,165 West Virginia................................................... 2,129 --------- $ 137,356 =========
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