EX-99.4 5 a2159472zex-99_4.htm EXHIBIT 99.4
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EXHIBIT 99.4

Item 15.    Exhibits, Financial Statement Schedules.

        (a)(1)    Financial Statements:

        The following financial statements of American Real Estate Partners, L.P. are included in Part II, Item 8:

 
   Page
Number
Report of Independent Registered Public Accounting Firm   58
Report of Independent Registered Public Accounting Firm   59
Consolidated Balance Sheets—December 31, 2004 and 2003   60
Consolidated Statements of Earnings—Years ended December 31, 2004, 2003 and 2002   61
Consolidated Statements of Changes in Partners' Equity and Comprehensive Income—Years ended December 31, 2004, 2003 and 2002   62
Consolidated Statements of Cash Flows—Years ended December 31, 2004, 2003 and 2002   63
Notes to Consolidated Financial Statements   65

        (a)(2)    Financial Statement Schedules:

Schedule III—Real Estate Owned and Revenues Earned (by tenant or guarantor, as applicable)   118

        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.

Exhibit Index

3.1   Certificate of Limited Partnership of American Real Estate Partners, L.P. ("AREP") dated February 17, 1987 (incorporated by reference to Exhibit No. 3.1 to AREP's Form 10-Q for the quarter ended March 31, 2004 (SEC File No. 1-9516), 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 Exhibit No. 3.2 to AREP's Form 10-Q for the quarter ended March 31, 2004 (SEC File No. 1-9516), filed on May 10, 2004).

3.3
 
Amendment No. 1 to the Amended and Restated Agreement of Limited Partnership of AREP, dated February 22, 1995 (incorporated by reference to Exhibit 3.3 to AREP's Form 10-K for the year ended December 31, 1994 (SEC File No. 1-9516), filed on March 31, 1995).

3.4
 
Certificate of Limited Partnership of American Real Estate Holdings Limited Partnership ("AREH"), dated February 17, 1987, as amended pursuant to First Amendment thereto, dated March 10, 1987 (incorporated by reference to Exhibit 3.5 to AREP's Form 10-Q for the quarter ended March 31, 2004 (SEC File No. 1-9516), filed on May 10, 2004).

3.5
 
Amended and Restated Agreement of Limited Partnership of AREH, dated as of July 1, 1987 (incorporated by reference to Exhibit 3.5 to AREP's Form 10-Q for the quarter ended March 31, 2004 (SEC File No. 1-9516), 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 (incorporated by reference to Exhibit 10.1 to AREP's Form 8-K (SEC File No. 1-9516), filed on August 16, 1996).

3.7
 
Amendment No. 1 to the Amended and Restated Agreement of Limited Partnership of AREH, dated August 16, 1996 (incorporated by reference to Exhibit 10.2 to AREP's Form 8-K (SEC File No. 1-9516), filed on August 16, 1996).

3.8
 
Amendment No. 3. to the Amended and Restated Agreement of Limited Partnership of AREP, dated May 9, 2002 (incorporated by reference to Exhibit 3.8 to AREP's Form 10-K for the year ended December 31, 2002 (SEC File No. 1-9516), filed on March 31, 2003).
     


3.9
 
Amendment No. 2 to the Amended and Restated Agreement of Limited Partnership of AREH, dated June 14, 2002 (incorporated by reference to Exhibit 3.9 to AREP's Form 10-K for the year ended December 31, 2002 (SEC File No. 1-9516), filed on March 31, 2003).

4.1
 
Depositary Agreement among AREP, American Property Investors, Inc. and Registrar and Transfer Company, dated as of July 1, 1987 (incorporated by reference to Exhibit 4.1 to AREP's Form 10-Q for the quarter ended March 31, 2004 (SEC File No. 1-9516), filed on May 10, 2004).

4.2
 
Amendment No. 1 to the Depositary Agreement dated as of February 22, 1995 (incorporated by reference to Exhibit 4.2 to AREP's Form 10-K for the year ended December 31, 1994 (SEC File No. 1-9516), filed on March 31, 1995).

4.3
 
Specimen Certificate representing Depositary Units.

4.4
 
Form of Application for Transfer of Depositary Units.

4.5
 
Specimen Certificate representing Preferred Units (incorporated by reference to Exhibit No. 4.9 to AREP's Form S-3 (SEC File No. 33-54767), filed on February 22, 1995).

4.6
 
Indenture, dated as of January 29, 2004, among American Casino & Entertainment Properties LLC ("ACEP"), American Casino & Entertainemnt Properties Finance Corp., ("ACEP Finance"), the guarantors from time to time party thereto and Wilmington Trust Company, as Trustee (the "Trustee"), incorporated by reference to Exhibit 4.1 to ACEP's Form S-4 (SEC File No. 333-118149), filed on August 12, 2004).

4.7
 
Form of ACEP and ACEP Finance 7.85% Note (incorporated by reference to Exhibit 4.10 to AREP's Form 10-Q for the quarter ended June 30, 2004 (SEC File No. 1-9516), filed on August 9, 2004).

4.8
 
Registration Rights Agreement, dated as of January 29, 2004, among ACEP, ACEP Finance, the guarantors party thereto and Bear, Stearns & Co. Inc. (incorporated by reference to Exhibit 4.4 to ACEP's Form S-4 (SEC File No. 333-118149), filed on August 12, 2004).

4.9
 
Indenture, dated as of May 12, 2004, among AREP, American Real Estate Finance Corp. ("AREP Finance"), AREH and Wilmington Trust Company, as Trustee, (incorporated by reference to Exhibit 4.1 to AREP's Form S-4 (SEC File No. 333-118021), filed on August 6, 2004).

4.10
 
Form of AREP and AREP Finance 81/8% Note (incorporated by reference to Exhibit 4.2 to AREP's Form S-4 (SEC File No. 333-118021), filed August 6, 2004).

4.11
 
Registration Rights Agreement, dated as of May 12, 2004, among AREP, AREP Finance, AREH and Bear, Stearns & Co. Inc. (incorporated by reference to Exhibit 4.3 to AREP's Form S-4 (SEC File No. 333-118021), filed on August 6, 2004).

4.12
 
Indenture, dated as of February 7, 2005, among AREP, AREP Finance and AREH, as Guarantors, and Wilmington Trust Company, as Trustee (incorporated by reference to Exhibit 4.9 to AREP's Form 8-K (SEC File No. 1-9516), filed on February 10, 2005).

4.13
 
Form of AREP and AREP Finance 7V8% Senior Note (incorporated by reference to Exhibit 4.10 to AREP's Form 8-K (SEC File No. 1-09516), filed on February 10, 2005).

4.14
 
Registration Rights Agreement, dated as of February 7, 2005, among AREP, AREP Finance and AREH, and Bear, Stearns & Co. Inc. and Jefferies & Company, Inc. (incorporated by reference to Exhibit 4.11 to AREP's Form 8-K (SEC File No. 1-9516), filed on February 10, 2005).

10.1
 
Distribution Reinvestment Plan

10.2
 
Registration Rights Agreement between AREP and X LP (now known as High Coast Limited Partnership).

10.3
 
Amended and Restated Agency Agreement (incorporated by reference to Exhibit 10.12 to Form 10-K for the year ended December 31, 1994 (SEC File No. 1-9516), filed on March 31, 1995).
     

2


10.4
 
Service Mark License Agreement, by and between Becker Gaming, Inc. and Arizona Charlie's, Inc., dated as of August 1, 2000 (incorporated by reference to ACEP's Form 10-K (SEC File No. 333-118149), filed on March 16, 2005.

10.5
 
Management Agreement, dated September 12, 2001, by and between National Energy Group, Inc. ("NEG") and NEG Operating LLC (incorporated by reference to Exhibit 99.4 to NEG's Form 8-K (SEC File No. 000-19136), filed on September 27, 2001).

10.6
 
Pledge Agreement and Irrevocable Proxy, dated December 29, 2003, made by NEG in favor of Bank of Texas, N.A. (incorporated by reference to Exhibit 10.3 of NEG's Form 8-K (SEC File No. 000-19036), filed on January 14, 2004).

10.7
 
Credit Agreement, dated as of January 29, 2004, by and among ACEP, certain subsidiaries of ACEP, the several lenders from time to time parties thereto and Bear Stearns Corporate Lending Inc., as Syndication Agent and Administrative Agent (incorporated by reference to Exhibit 10.1 to ACEP's Form S-4 (SEC File No. 333-118149), filed on August 12, 2004).

10.8
 
Pledge and Security Agreement, dated as of May 26, 2004, by and among ACEP, ACEP Finance, certain subsidiaries of ACEP and Bear Stearns Corporate Lending Inc. (incorporated by reference to Exhibit 10.2 to ACEP's Form S-4 (SEC File No. 333-118149), filed on August 12, 2004).

10.9
 
Employment Agreement, effective as of April 1, 2004, by and between ACEP and Richard P. Brown (incorporated by reference to Exhibit 10.4 to ACEP's Form S-4 (SEC File No. 333-118149), filed on August 12, 2004).

10.10
 
First Amendment to Credit Agreement, dated as of January 29, 2004 by and among ACEP, as the Borrower, certain subsidiaries of the Borrower, as Guarantors, The Several Lenders, Bear Stearns Corporate Lending Inc. as Syndication Agent, and Bear Steams Corporate Lending Inc., as Administrative Agent, dated as of May 26, 2004, Bear, Stearns & Co. Inc., as Sole Lead Arranger and Sole Bookrunner (incorporated by reference to Exhibit 10.6 to ACEP's Form S-4 (SEC File No. 333-118149), filed on October 12, 2004).

10.11
 
Management Agreement, dated November 16, 2004, by and between NEG and Panaco, Inc. ("Panaco") (incorporated by reference to Exhibit 10.13 to NEG's Form 10-Q (SEC File No. 000-19136), filed on November 15, 2004).

10.12
 
Management Agreement, dated August 28, 2003, by and between NEG and TransTexas Gas Corporation ("TransTexas") (incorporated by reference to Exhibit 10.1 to NEG's Form 8-K (SEC File No. 000-19136), filed on September 10, 2003).

10.13
 
Purchase Agreement for Notes Issued by TransTexas, dated December 6, 2004, by and between Thornwood Associates LP ("Thornwood") and AREP Oil & Gas LLC ("AREP Oil & Gas") (incorporated by reference to Exhibit 99.1 to AREP's Form 8-K (SEC File No. 1-9516), filed on December 10, 2004).

10.14
 
Assignment and Assumption Agreement, dated December 6, 2004, by and between Thornwood and AREP Oil & Gas (incorporated by reference to Exhibit 99.2 to AREP's Form 8-K (SEC File No. 1-9516), filed on December 10, 2004).

10.15
 
Membership Interest Purchase Agreement, dated as of December 6, 2004, by and among AREP Oil & Gas, Arnos Corp., High River and Hopper Investments LLC (incorporated by reference to Exhibit 99.3 to AREP's Form 8-K (SEC File No. 1-9516), filed on December 10, 2004).

10.16
 
Assignment and Assumption Agreement, dated December 6, 2004, by and among AREP Oil & Gas, Arnos Corp., High River and Hopper Investments LLC (incorporated by reference to Exhibit 99.4 to AREP's Form 8-K (SEC File No. 1-9516), filed on December 10, 2004).

10.17
 
Amended and Restated Oil & Gas Term Loan Agreement by and among Thornwood and TransTexas, Galveston Bay Pipeline Company and Galveston Bay Processing Corporation and Thornwood, dated August 28, 2003 (incorporated by reference to Exhibit 99.5 to AREP's Form 8-K (SEC File No. 1-9516), filed on December 10, 2004).
     

3


10.18
 
Amended and Restated Security and Pledge Agreement, dated August 2003, by and among TransTexas, Galveston Bay Pipeline Company, Galveston Bay Processing Corporation and Thornwood (incorporated by reference to Exhibit 99.6 to AREP's Form 8-K (SEC File No. 1-9516), filed on December 10, 2004).

10.19
 
Term Loan and Security Agreement among Panaco, Mid River LLC and Lenders Named Therein, dated as of November 16, 2004 (incorporated by reference to Exhibit 99.7 to AREP's Form 8-K (SEC File No. 1-9516), filed on December 10, 2004).

10.20
 
Note Purchase Agreement, dated as of December 27, 2004, by and among AREP Sands Holding LLC, Barberry Corp., and Cyprus, LLC (incorporated by reference to Exhibit 99.1 to AREP's Form 8-K (SEC File No. 1-9516), filed on December 30, 2004).

12.1
 
Ratio of Earnings to Fixed Charges.

21.1
 
Code of Business Conduct and Ethics incorporated by reference to Exhibit 99.2 to AREP's Form 10-Q for the quarter ended September 30, 2004 (SEC File No. 1-9516), filed on November 9, 2004).

21.6
 
List of Subsidiaries.

31.1
 
Certification of Principal Executive Officer pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002.

31.2
 
Certification of Principal 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
 
Corporate Governance Guidelines (incorporated by reference to Exhibit 99.1 to AREP's Form 10-Q for the quarter ended September 30, 2004 (SEC File No. 1-9516), filed on November 9, 2004).

99.2
 
Code of Business Conduct and Ethics incorporated by reference to Exhibit 99. 2 to AREP's Form 10-Q for the quarter ended September 30, 2004 (SEC File No. 1-9516), filed on November 9, 2004).

4

Schedule III
Page 1

AMERICAN REAL ESTATE PARTNERS, LP
a limited partnership
REAL ESTATE OWNED AND REVENUES EARNED

 
    
    
    
   Part 1—Real Estate Owned at December 31, 2004—Accounted for Under the:
   Part 2—Revenues earned for the Year
Ended December 31, 2004
  
 
    
    
    
   Operating Method
   Financing Method
    
    
    
  
 
   State
   No. of
Locations
   Amount of
Encumbrances
   Initial Cost
to Company
   Cost of
Improvements
   Amount
Carried at
Clost of
Period
   Reserve for
Depreciation
   Rent due and
Accrued or
Received in
Advance at
End of
Period
   Net
Investment
   Minimum Lease
Payments Due
and Accrued at
End of Period
   Total
Revenue
Applicable
to Period
   Expanded for
Interest,
Depreciation,
Taxes, and
Other Expenses
   Net Income
Applicable
to Period
  
COMMERCIAL PROPERTY LAND AND BUILDING                                                                            
  Acme Markets, Inc. and FPBT of Penn   PA   1                                                   $ 329,559   (3) $ 13,739   (3) $ 315,820  
  Alabama Power Company   AL   5                                                     44,889     (13,675 )   58,564  
  Amer Stores, Eckerd & Marburn   NJ   1                                                     45,454   (3)   8,518   (3)   36,936  
  Atrium   VA   1                                                     2,002,409   (3)   1,682,710   (3)   319,699  
  Best Products Co., Inc.   VA   1         $ 3,376,815   $ (350,000 ) $ 3,026,815   $ 257,538                       114,217     487,522     (373,305 )
  Chesebrough-Pond's Inc.   CT   1                                                     54,839   (3)   (9,000) (3)   63,839  
  Collins Foods International, Inc.   OR   3                                                     10,379   (3)   1,300   (3)   9,079  
  Collins Foods International, Inc.   CA   1                                                     5,637   (3)   0   (3)   5,637  
  Dillon Companies, Inc.   MO   1                                                     23,369   (3)   0   (3)   23,369  
  Dragon Court.   MA   1           3,744,706     37,571     3,782,277     308,037                       143,148     718,750     (575,602 )
  Duke Power Co.   NC   1           3,464,225           3,464,225     458,819                       797,177     114,705     682,472  
  Easco Corp.   NC   1           1,046,012           1,046,012 (2)   66,634                       396,250     8,244     388,006  
  European American Bank and Trust Co.   NY   1                                                     158,491   (3)   175,603   (3)   (17,112 )
  Farwell Bldg.   MN   1                                                     600,675   (3)   (215,173) (3)   815,848  
  First National Supermarkets, Inc.   CT   1   $ 19,576,538                                 $ 18,937,655           1,779,799     1,148,329     631,470.  
  Fisher Scientific Company.   IL   1                                                     56,086   (3)   0   (3)   56,086  
  Forte Hotels International, Inc.   NJ   1                                                     441,288   (3)   7,747   (3)   433,541  
  Fox Grocery Company   WV   1           1,919,486           1,919,486     13,375                       211,197     13,375     197,822  
  Gino's, Inc.   OH   1           314,012           314,012     28,019                       34,489     10,090     24,399  
  Golf Road   IL   1                                                     364,321   (3)   (9,173) (3)   373,494  
  Grand Union Co.   NY   1           874,765           874,765     104,090   $ 45                 108,000     20,818     87,182  
  Grand Union Co.   VA   1                                                     13,828   (3)   1,805   (3)   12,023  
  Whalen   NY   1           7,934,020           7,934,020 (2)   226,925                       12,050     813,152     (801,102 )
  Gunite   IN   1                                                     0   (3)   66,930   (3)   (66,930 )
  G.D. Searle & Co.   MN   1           339,358           339,358     172,501     (3,083 )               37,000     2,562     34,438  
  G.D. Searle & Co.   IL   1                                                     37,168   (3)   8,550   (3)   28,618  
  Integra A Hotel and Restaurant Co.   AL   2                                                     127,984   (3)   2,646   (3)   125,338  
  Integra A Hotel and Restaurant Co.   IN   1                                                     45,272   (3)   204   (3)   45,068  
  Integra A Hotel and Restaurant Co.   OH   1                                                     39,770   (3)   0   (3)   39,770  
  Integra A Hotel and Restaurant Co.   MO   1           414,887           414,887     17,105                       91,818     10,376     81,442  
  Integra A Hotel and Restaurant Co.   TX   1           438,097     (2,616 )   435,481 (2)   16,744                       103,960     0     103,960  
  Integra A Hotel and Restaurant Co.   MI   1                                                     62,475   (3)   204   (3)   62,271  
  Intermountain Color   KY   1           560,444           560,444     523,715                       97,802     5,453     92,349  
  J.C. Penney Company, Inc.   MA   1           2,484,262           2,484,262     1,987,410     (41,707 )               250,244     3,850     246,394  
  Kings Buffet   FL   1           910,425           910,425     42,803     (279 )               117,000     39,061     77,939  
  K-Mart Corporation   LA   1                                                     0     31,394     (31,394 )
  K-Mart Corporation   WI   1                                                     0   (3)   65,866   (3)   (65,866 )
  K-Mart Corporation   MN   1                                                     0   (3)   85,348   (3)   (85,348 )
  K-Mart Corporation   IA   1                                         973,484           93,963     26,423     67,540  
  K-Mart Corporation   FL   1           2,636,000           2,636,000 (2)   1,899,765                       251,420     6,815     244,605  
  K-Mart Corporation   FL                                                         0     735     (735 )
  K-Mart Corporation   IL   1           600,000           600,000     31,732                       62,322     58,800     3,522  
  Kobacker Stores, Inc.   MI   2           112,225           112,225           1,068     106,341   $ 2,412     24,142     461     23,681  
  Kobacker Stores, Inc.   KY   1           88,364           88,364           769     64,103     1,115     15,853     231     15,622  
  Kobacker Stores, Inc.   OH   4           198,031           198,031           1,851     187,753     4,117     48,933     461     48,472  
  Landmark Bancshares Corporation   MO   1                                         3,303,464           482,092     0     482,092  
  Louisiana Power and Light Company   LA   6           5,636,053           5,636,053     637,447                       1,240,853     154,203     1,086,650  
  Louisiana Power and Light Company   LA   7           7,015,989           7,015,989     727,786                       1,299,275     174,669     1,124,606  
  Marsh Supermarkets, Inc.   IN   1           5,001,933           5,001,933     3,229,039                       506,300     131,479     374,821  
  Mid-South   TN   1                                                     771,125   (3)   535,186   (3)   235,939  
  Montgomery Ward, Inc.   PA   1                                                     156,267   (3)   (12,221) (3)   168,488  

5

Schedule III
Page 2

AMERICAN REAL ESTATE PARTNERS, LP
a limited partnership
REAL ESTATE OWNED AND REVENUES EARNED

 
    
    
    
   Part 1—Real Estate Owned at December 31, 2004—Accounted for Under the:
   Part 2—Revenues earned for the Year Ended
December 31, 2004
  
 
    
    
    
   Operating Method
   Financing Method
    
    
    
  
 
   State
   No. of
Locations
   Amount of
Encumbrances
   Initial Cost
to Company
   Cost of
Improvements
   Amount
Carried at
Clost of
Period
   Reserve for
Depreciation
   Rent Due and
Accrued or
Received in
Advance at
End of
Period
   Net
Investment
   Minimum Lease
Payments Due
and Accrued at
End of Period
   Total
Revenue
Applicable
to Period
   Expanded for
Interest,
Depreciation,
Taxes, and
Other Expenses
   Net Income
Applicable
to Period
  
COMMERCIAL PROPERTY LAND AND BUILDING                                                      
  Montgomery Ward, Inc   NJ   1                                   113,765   (3) 3,227   (3) 110,538  
  Morrison, Inc   AL   1                                   0   (3) 44,213   (3) (44,213 )
  Morrison, Inc   GA   1                                   91,680   29,053   62,627  
  Morrison, Inc   VA   1       904,766       904,766 (2) 32,502               0   39,460   (39,460 )
  Morrison, Inc   VA   1       861,134       861,134   46,236               0   21,793   (21,793 )
  North Carolina National Bank   SC   2       1,450,047       1,450,047   671,374               56,238   80,407   (24,169 )
  North Carolina National Bank   SC   1       153,365       153,365 (2) 103,365               0   3,851   (3,851 )
  Occidental Petroleum Corp   CA   1                                   0   38   (38 )
  Ohio Power Co. Inc   OH   1                           3,053,550       290,655   0   290,655  
  Park West   KY   1                                   641,691   (3) 428,744   (3) 212,947  
  Park West UPS   KY   1                                   932,538   (3) 596,187   (3) 336,351  
  Penske Corp   OH   1                                   0   (3) 65,756   (3) (65,756 )
  Pneumo Corp   OH   1       1,629,713       1,629,713   123,285               243,750   54,793   188,957  
  Portland General Electric Company   OR   1   31,096,664                       45,903,530       3,984,278   2,526,316   1,457,962  
  Rayovac   WI   1   14,855,137   22,065,852       22,065,852 (2) 2,243,143               2,788,657   1,224,533   1,564,124  
  Safeway Stores, Inc   LA   1                                   48,984   (3) 1,545   (3) 47,439  
  Sams   MI   1       8,844,225       8,844,225 (2) 2,380,429               1,245,569   4,241   1,241,328  
  Smith's Management Corp   NV   1                                   0   810   (810 )
  Southland Corporation   FL   4       862,367       862,367   516,348               100,359   3,313   97,046  
  Staples   NY   1                                   136,332   (3) 21,304   (3) 115,028  
  Stone Container   WI   1   5,696,064   9,028,574       9,028,574 (2) 1,526,831   (75,748 )         903,041   670,448   232,593  
  Stop & Shop   NY   1                                   137,100   (3) 0   (3) 137,100  
  Stop & Shop   NJ   1                                   55,565   (3) 45   (3) 55,520  
  Stop "N Shop Co., Inc   VA   1       2,158,099       2,158,099   115,294               109,255   207,934   (98,679 )
  Super Foods Services, Inc   MI   1   3,819,320                       8,303,219       895,025   356,606   538,419  
  Telecom Properties, Inc   OK   1                                   0   506   (506 )
  Telecom Properties, Inc   KY   1       340,321       340,321   3,544               36,000   3,686   32,314  
  The A&P Company   MI   1                                   0   (3) 72,842   (3) (72,842 )
  Tire Distribution Systems Inc   TN   1                                   4,583   (3) 150   (3) 4,433  
  Tops Market   NY   1       262,357       262,357   30,311   (15,727 )         31,453   6,062   25,391  
  Toys "R" Us, Inc   TX   1                                   0   5,077   (5,077 )
  Waban   NY   1                                   261,122   (3) 22,972   (3) 238,150  
  Wetterau, Inc   PA   1       400,000       400,000 (2)                 0   44,785   (44,785 )
  Wetterau, Inc   NJ   1       747,116       747,116   57,759               150,800   25,671   125,129  
  Wickes Companies, Inc   CA   1                                   66,565   (3) (12,192 )(3) 78,757  
RESIDENTIAL PROPERTY LAND AND BUILDING                                                      
  Crown Cliffs   AL   1   6,926,225   11,550,899   112,579   11,663,478 (1)(2) 4,107,054               2,078,098   1,650,167   427,931  
COMMERCIAL PROPERTY—LAND                                                      
  Foodarama Supermarkets, Inc   NY   1                                   13,232   (3) 4,002   (3) 9,230  
  Foodarama Supermarkets, Inc   PA   1                                   12,000   (3) 4,002   (3) 7,998  
  Gino's, Inc   PA   1                                   6,751   (3) 4,002   (3) 2,749  
  Gino's, Inc   MA   1                                   6,751   (3) 4,002   (3) 2,749  
  Gino's, Inc   NJ   1                                   6,751   (3) 4,002   (3) 2,749  
  J.C. Penney Company, Inc   NY   1                                   917   (3) 0   (3) 917  

6

Schedule III
Page 3

AMERICAN REAL ESTATE PARTNERS, LP
a limited partnership
REAL ESTATE OWNED AND REVENUES EARNED

 
    
    
    
   Part 1—Real Estate Owned at December 31, 2004—Accounted for Under the:
   Part 2—Revenues earned for the Year Ended
December 31, 2004
  
 
    
    
    
   Operating Method
   Financing Method
    
    
    
  
 
   State
   No. of
Locations
   Amount of
Encumbrances
   Initial Cost
to Company
   Cost of
Improvements
   Amount
Carried at
Clost of
Period
   Reserve for
Depreciation
   Rent Due and
Accrued or
Received in
Advance at
End of
Period
   Net
Investment
   Minimum Lease
Payments Due
and Accrued at
End of Period
   Total
Revenue
Applicable
to Period
   Expanded for
Interest,
Depreciation,
Taxes, and
Other Expenses
   Net Income
Applicable
to Period
  
COMMERCIAL PROPERTY LAND AND BUILDING                                                                            
COMMERCIAL PROPERTY—BUILDING                                                                            
AT&T   CA   1           2,569,705     2,830     2,572,535   (2)   82,237                       462,931     153,631     309,300  
Bank of America   GA   1                                         2,581,575           265,158     23,000     242,158  
Baptist Hospital I   TN   1                                                     614,762     506,345     108,417  
Baptist Hospital 2   TN   1                                                     228,172     184,120     44,052  
Harwood Square   IL   1           6,952,206     257,158     7,209,364   (2)   4,186,890                       795,016     57,952     737,064  
Safeway Stores, Inc   CA   1                                                     13,885   (3)   0   (3)   13,885  
Toys "R" Us, Inc   RI   1                                         745,050     10,430     72,394     0     72,394  
United Life & Accident Ins. Co   NH   1                                         2,894,284     (43,667 )   252,370     5,207     247,163  
Wickes Companies, Inc   PA   1                                         2,138,678           527,221     902     526,319  
North Moore   NY   1     9,925,579           14,583,060     14,583,060     416,659     (49,172 )               1,122,237     1,110,043     12,194  
           
 
 
 
 
 
 
 
 
 
 
 
              91,895,527     119,890,855     14,640,582     134,531,437     27,392,745     (181,983 )   89,192,686     (25,593 )   33,514,240     16,644,625     16,869,615?  
           
 
 
 
 
 
 
 
 
 
 
 
LESS HELD FOR SALE—OPERATING REAL ESTATE             (27,477,426 )   (74,523,721 )   (369,951 )   (74,893,672 )   (16,872,519 )                     (15,657,963 )   (8,085,219 )   57,572,744 )
           
 
 
 
 
 
 
 
 
 
 
 
              64,418,101     45,367,134     14,270,631     59,637,765     10,520,226     (181,983 )   89,192,686     (25,593 )   17,856,277     8,559,406     9,296,871  
           
 
 
 
 
 
 
 
 
 
 
 
LESS CURRENT PORTION             (3,700,000 )                                 (3,912,000 )                        
           
 
 
 
 
 
 
 
 
 
 
 
HOTEL AND RESORT OPERATING PROPERTIES                                                                            
New Seabury   MA               37,087,739     954,952     38,042,691     9,148,267                       9,848,167     10,056,181     (208,014 )
Holiday Inn   FL                                                         1,602,255   (3)   1,297,717   (3)   304,538  
Bayswater   FL               5,310,365     79,105     5,389,470     719,824                       3,002,000     2,618,000     384,000  
Grand Harbor   FL                     16,893,964     16,893,964     326,262                       5,626,869     7,169,226     (1,542,357 )
           
 
 
 
 
 
 
 
 
 
 
 
              0     42,398,104     17,928,021     60,326,125     10,194,353     0     0     0     20,079,291     21,141,124     (1,061,833 )
           
 
 
 
 
 
 
 
 
 
 
 
LESS HELD FOR SALE-HOTEL AND RESORT                                                             (3,868,700 )   (3,942,003 )   73,303  
           
 
 
 
 
 
 
 
 
 
 
 
            $ 60,718,101   $ 87,765,238   $ 32,198,652   $ 119,963,890   $ 20,714,579   $ (181,983 ) $ 85,280,686   $ (25,593 ) $ 34,066,868   $ 25,758,527   $ 8,308,341  
           
 
 
 
 
 
 
 
 
 
 
 
(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 12/31/04.

(3)
Sold in 2004 and included in discontinued operations.

7

AMERICAN REAL ESTATE PARTNERS, L.P. AND SUBSIDIARIES

REAL ESTATE OWNED AND REVENUES EARNED

Year Ended December 31, 2004 (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 l, 2004   $ 161,158  
Additions during period     32,866  
Reclassifications during period from financing leases     1,919  
Write downs     (350 )
Reclassifications during period to assets held for sale     (74,720 )
Disposals during period     (909 )
   
 
Balance—December 31, 2004   $ 119,964  
   
 

        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, 2004   $ 43,189  
Depreciation during period     5,274  
Disposals during period     (42 )
Reclassifications during period to assets held for sale     (27,706 )
   
 
Balance—December 31, 2004   $ 20,715  
   
 

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 20 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 l, 2004   $ 137,356  
Reclassifications during period to operating properties     (1,919 )
Disposals during period     (42,044 )
Amortization of unearned income     9,880  
Minimum lease rentals received     (14,080 )
   
 
Balance—December 31, 2004   $ 89,193  
   
 

        3.    The aggregate cost of real estate owned for Federal income tax purposes is $209,193 before accumulated depreciation.

8

        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   $ 8,308  
Net income applicable to hotel and casino operations     36,649 (1)
Net income applicable to land, house and condominium sales     6,355  
Net income applicable to oil and gas operations     28,186 (2)
Add:        
  Interest income on U.S. Government and Agency Obligations and other investments     44,418  
  Dividend and unallocated other income     3,133  
   
 
      127,049  
   
 
Deduct expenses not allocated:        
  General and administrative expenses     9,806  
  Non-mortgage interest expense     37,195  
  Other     7,974  
   
 
      54,975  
   
 
Operating income after income taxes     72,074  
   
 
Gain on sale of marketable equity and debt securities     40,159  
Gain on sale of real estate     5,262  
Impairment loss on equity interest in GB Holdings, Inc     (15,600 )
Unrealized losses in securities sold sort     (23,619 )
   
 
Income from continuing operations     78,276  
   
 
Discontinued Operations:        
  Total Income from discontinued operations     82,697  
   
 
Net Earnings   $ 160,973  
   
 
(1)
Includes depreciation expense of $23,516 and $10,100 of income tax expense.

(2)
Includes income tax expense of $6,663.

9

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 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     (241 )
   
 
Balance—December 31, 2003   $ 43,189  
   
 

        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.

10

        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   $ 12,397  
Net income applicable to hotel and casino operations     24,064 (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     22,583  
  Dividend and unallocated other income     3,061  
   
 
      85,763  
   
 

Deduct expenses not allocated:
 
 
 
 
  General and administrative expenses     6,850  
  Nonmortgage interest expense     2,449  
  Other     5,912  
   
 
      15,211  
   
 
Operating income after income taxes     70,552  
Gain on sale of real estate     7,121  
Write down of marketable equity and debt securities and other investments     (19,759 )
Loss on sale of other assets     (1,503 )
Gain on sale of marketable equity and debt securities     2,607  
   
 
Income from continuing operations     59,018  
   
 
  Total income from discontinued operations     11,006  
   
 
  Net earnings   $ 70,024  
   
 
(1)
Includes depreciation expense of $20,222 and income tax benefit of $1,798.

(2)
Includes income tax expense of $225 and interest expense of $11,165.

11

        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     (l,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  
Reclassification 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.

12


        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   $ 13,198  
Net income applicable to hotel and casino operations     6,845 (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     30,569  
  Dividend and unallocated other income     2,720  
   
 
      83,131  
   
 

Deduct expenses not allocated:
 
 
 
 
  General and administrative expenses     7,029  
  Non-mortgage interest expense     5,306  
  Other     1,505  
   
 
      13,840  
   
 
Operating income after income taxes     69,291  
Gain on sale of real estate     8,990  
Write down of equity securities     (8,476 )
Loss on sale of other assets     (353 )
Loss on limited partnership interests     (3,750 )
Minority interest in net earnings of Stratosphere Corporation     (1,943 )
   
 
Income from continuing operations     63,759  
   
 
  Total income from discontinued operations     6,937  
   
 
  Net earnings   $ 70,696  
   
 
(1)
Includes depreciation expense of $20,209 and income tax expense of $4,970.

(2)
Includes income tax expense of $5,068 and interest expense of $18,964.

13


AMERICAN REAL ESTATE PARTNERS, L.P. AND SUBSIDIARIES

REAL ESTATE OWNED AND RESERVED FOR DEPRECIATION BY STATE
(Accounted for Under the Operating Method)
December 31, 2004 (in 000's)

State
   Amount at Which
Carried at Close
of Year
   Reserve for
Depreciation
Florida   $ 24,057   $ 1,606
Illinois     600     32
Indiana     5,002     3,229
Kentucky     989     527
Louisiana     12,621     1,365
Massachusetts     44,310     11,444
Michigan     112     0
Minnesota     339     173
Missouri     415     17
New Jersey     747     58
New York     15,751     551
North Carolina     3,464     459
Ohio     2,142     151
South Carolina     1,450     671
Virginia     6,046     419
West Virginia     1,919     13
   
 
    $ 119,964   $ 20,715
   
 

14


AMERICAN REAL ESTATE PARTNERS, L.P. AND SUBSIDIARIES

REAL ESTATE OWNED BY STATE
(Accounted for Under the Financing Method)
December 31, 2004 (in $000's)

State
   Net
Investment
Connecticut   $ 18,938
Georgia     2,583
Iowa     973
Kentucky     64
Michigan     8,410
Missouri     3,303
New Hampshire     2,894
Ohio     3,241
Oregon     45,903
Pennsylvania     2,139
Rhode Island     745
   
    $ 89,193
   

15


Exhibit 12.1


AMERICAN REAL ESTATE PARTNERS, L.P. AND SUBSIDIARIES
RATIO OF EARNINGS TO FIXED CHARGES
(AMOUNTS IN THOUSANDS)

 
   Years Ended December 31,
 
   2004
   2003
   2002
   2001
   2000
Income from continuing operations before income taxes, income or loss from equity investees and minority interest   $ 96,129   $ 60,145   $ 74,923   $ 71,169   $ 77,502
Fixed Charges:                              
  Interest Expense   $ 46,099   $ 21,103   $ 27,297     36,577   $ 20,057
  Amortized capitalized expenses related to indebtedness   $ 2,400   $ 320   $ 191   $ 178   $ 222
  Estimated interest within rental expense   $ 128   $ 122   $ 124   $ 103   $ 100
   
 
 
 
 
Earnings as defined   $ 144,756   $ 81,690   $ 102,535   $ 108,027   $ 97,881
   
 
 
 
 
Fixed Charges (including capitalized terms):                              
  Interest Expense   $ 46,099   $ 21,103   $ 27,297   $ 36,577   $ 20,057
  Amortized capitalized expense related to indebtness   $ 2,400   $ 320   $ 191   $ 178   $ 222
  Estimated interest within rental expense   $ 128   $ 122   $ 124   $ 103   $ 100
   
 
 
 
 
Fixed charges as defined   $ 48,627   $ 21,545   $ 27,612   $ 36,858   $ 20,379
   
 
 
 
 
Ratio of earnings to fixed charges     3.0     3.8     3.7     2.9     4.8
   
 
 
 
 



QuickLinks

EXHIBIT 99.4
AMERICAN REAL ESTATE PARTNERS, L.P. AND SUBSIDIARIES REAL ESTATE OWNED AND RESERVED FOR DEPRECIATION BY STATE (Accounted for Under the Operating Method) December 31, 2004 (in 000's)
AMERICAN REAL ESTATE PARTNERS, L.P. AND SUBSIDIARIES REAL ESTATE OWNED BY STATE (Accounted for Under the Financing Method) December 31, 2004 (in $000's)
Exhibit 12.1
AMERICAN REAL ESTATE PARTNERS, L.P. AND SUBSIDIARIES RATIO OF EARNINGS TO FIXED CHARGES (AMOUNTS IN THOUSANDS)