UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION
                     WASHINGTON, D.C.  20549
                          -------------
                           FORM 10-KSB
                                
             ANNUAL REPORT UNDER SECTION 13 OR 15(d)
             OF THE SECURITIES EXCHANGE ACT OF 1934
                     ----------------------
For the fiscal year ended December 31, 1995
Commission file number 1-8330

                         LNH REIT, Inc.
         (Name of small business issuer in its charter)

          Maryland                      75-1732388
(State or other jurisdiction         (I.R.S. Employer
 of incorporation or organization)   Identification No.)

300 One Jackson Place
188 East Capitol Street
Jackson, Mississippi                             39201
(Address of principal executive offices)       (Zip Code)

Issuer's telephone number:    (601) 354-3555

Securities registered pursuant to Section 12(b) of the Act:

                                Name of Exchange on Which
 Title of Each Class                     Registered
Common Stock ($.50 par value)      New York Stock Exchange

    Securities registered under to Section 12(g) of the Act:
                              None

Indicated 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

Indicate by check mark if disclosure of delinquent filers
pursuant to Item 405 of Regulation S-B is not contained herein,
and will not be contained, to the best of registrant's knowledge,
in definitive proxy or information statements incorporated by
reference in Part III of this Form 10-KSB or any amendment to
this Form 10-KSB.

     Revenues for the year ended December 31, 1995 were
     $2,479,000
     
     At March 15, 1996, the aggregate market value of the voting
     stock held by nonaffiliates was $13,057,000.
     
     The number of shares of Common Stock outstanding as of March
     18, 1996 was 2,200,000.

               DOCUMENTS INCORPORATED BY REFERENCE
                                
Portions of the Proxy Statement for the 1996 Annual Meeting of
Shareholders are incorporated by reference into Part III.



                              PART I

Item 1.  Description of Business.

Original Organization

   LNH  REIT,  Inc.  ("LNH" or the "Company")  is  a  corporation
established  under the laws of the State of Maryland in  December
1980  under the name L & N Housing Corp.  At the April  22,  1992
Annual Meeting, the Shareholders approved the change of name from
L & N Housing Corp. to LNH REIT, Inc.

  LNH has qualified to be taxed as a real estate investment trust
("REIT") under Sections 856-860 of the Internal Revenue  Code  of
1986, as amended (the "Code"), and intends to continue to qualify
to  be  so taxed.  If in any taxable year the Company should  not
qualify  as  a  REIT,  it would be taxed  as  a  corporation  and
distributions  to  shareholders would not be  deductible  by  the
Company in computing its federal and state taxable income.

Administration

   Until  April  1992,  the Company was  managed  pursuant  to  a
Management  Agreement with L & N Housing Managers,  Inc.  ("Prior
Manager"),   a   wholly-owned  subsidiary  of   Lomas   Financial
Corporation  ("LFC").  The Prior Manager served as the  Company's
investment advisor, administering the day-to-day affairs  of  the
Company  and representing the Company in its dealing  with  third
parties,  subject  to the supervision of the Company's  Board  of
Directors.  LFC also owned 352,000 shares of the Company's common
stock.

    In   1992,  EastGroup  Properties,  a  Maryland  real  estate
investment  trust  ("EastGroup"),  and  Walker  Investments  L.P.
("Walker"),  purchased  352,000 shares of  the  Company's  Common
Stock from LFC.  The agreement pursuant to which the shares  were
purchased  (the  "Agreement") further  provided  that  the  Prior
Manager  would assign its rights and duties as manager under  the
Management Agreement to LNH REIT Managers, a Mississippi  general
partnership  (the "Manager") which was an affiliate of  EastGroup
and  Walker.  The Management Agreement was amended to  substitute
the Manager for the Prior Manager under the Management Agreement.
EastGroup  and Walker agreed to pay an aggregate of  $406,000  to
the  Company,  in consideration of the assignment  of  the  Prior
Manager's  duties  and  responsibilities  as  manager  under  the
Management Agreement to LNH REIT Managers.  The $406,000 has been
paid  in  installments  subject to the maximum  amount  that  the
Company may receive in a year without violating the 95% gross

Description of Business (continued)

income  test set forth in Section 856(c) of the Internal  Revenue
Code.  The unpaid balance of the $406,000 accrued simple interest
at the rate of 6.6% and the obligation of EastGroup and Walker to
pay  any unpaid balance of the $406,000 terminated on January  1,
1996.   During  the  year ended December 31,  1995,  the  Company
accrued  $41,000  as  income pursuant to the  assignment  of  the
Management  Agreement  and recorded $2,000  in  interest  on  the
unpaid  balance.   The  final  payment  on  this  obligation  was
received in September 1995.

   On  March 24, 1995, EastGroup and its wholly owned subsidiary,
EGP  Managers, Inc. ("EGP Managers"), entered into  an  agreement
(the "March 24, 1995 Agreement") with Walker and certain entities
affiliated  with  Walker  and its affiliates  pursuant  to  which
EastGroup  agreed  to purchase 383,775 shares  of  the  Company's
Common  Stock  from  Walker and EGP Managers agreed  to  purchase
Walker's  interest in the Manager.  On that same date, the  Board
of  Directors of the Company approved an additional amendment  to
the  Management  Agreement pursuant to which EGP  Managers  would
assume   the  obligations  and  duties  of  Managers  under   the
Management   Agreement  effective  upon  the   Closing   of   the
transactions  set  forth in the March 24, 1995  Agreement,  which
Closing took place on April 3, 1995.

   On  September 6, 1995 (amended on December 6, 1995), LNH REIT,
Inc.  and  EastGroup Properties, Inc. announced that the  Special
Committees of the Boards of each company had agreed in  principle
to   a   merger   between  LNH  and  EastGroup.   The   Company's
shareholders would receive shares of EastGroup with  a  value  of
$8.10  for  each LNH share.  The number of EastGroup shares  that
LNH  shareholders  receive would be determined  by  dividing  the
value  $8.10  by  the average trading price of  EastGroup  shares
during  the  10 trading days prior to the effective date  of  the
merger.   EastGroup presently owns 23.4% of LNH.  The  merger  is
subject  to  several conditions, including shareholder  approval,
receipt   of   a  satisfactory  fairness  opinion  by   LNH   and
registration of the EastGroup shares to be issued in  the  merger
with the Securities and Exchange Commission.

   The  Management  Agreement, as amended,  was  renewed  at  its
original expiration on December 31, 1995 but it will terminate on
the  effective  date  of  the  Company's  merger  with  EastGroup
Properties.   The  Manager  had entered  into  an  Administration
Agreement  with  Congress  Street Properties,  Inc.  ("  Congress
Street"),  a  Delaware  corporation  and  then  an  affiliate  of
EastGroup, pursuant to which  Congress Street provided day-to-day
administrative services to the Company, including office space,



Description of Business. (continued)

equipment  and  personnel incident thereto.   The  Administration
Agreement  was  terminated by EGP Managers  effective  March  31,
1995.  The Company bears the costs of independent agents, such as
attorneys,  auditors and appraisers, retained on  behalf  of  the
Company;  of  expenses connected with the acquisition,  operation
and   disposition  of  its  real  property  interests;   and   of
shareholder communications, directors' fees and franchise taxes.

   Pursuant  to  the  Management Agreement, the  Company  has  no
employees.  All personnel required for the administration of  the
Company's  operations, including LNH's officers, were compensated
by EastGroup.

Operations

     The Company was originally formed to invest in participating
first  mortgage  loans  secured by  multifamily  rental  projects
located  in  the  United States.  As the markets for  multifamily
rental projects began to decline in 1985, the Company shifted its
investment  target  to  commercial projects  and  investments  in
marketable equity securities of other REITs.

   Since its inception, the Company has funded mortgage loans  on
15  projects  of which ten were disposed, one remains outstanding
in the form of a mortgage loan and four loans were foreclosed and
the collateral is held as real estate owned at December 31, 1995.

   The  Company has operated, and intends to continue to operate,
in  such  manner as to qualify for taxation as a REIT  under  the
Code, but no assurance can be given that it will at all times  so
qualify.  To qualify as a REIT, the Company must satisfy  various
requirements  under  the Code, including requirements  concerning
the  nature  and  composition of its  income  and  assets  and  a
requirement that it distribute in each year at least 95%  of  its
REIT taxable income.  So long as the Company qualifies as a REIT,
it  will  generally be taxable only on its undistributed  taxable
income. Distributions out of current or accumulated earnings  and
profits  will  be  taxed to stockholders as  ordinary  income  or
capital gain, as the case may be.  Distributions in excess of the
Company's  accumulated  and  current earnings  and  profits  will
constitute  a  non-taxable  return to  the  stockholders  (except
insofar as such distributions exceed the cost basis on the Common
Stock) and will result  in a corresponding reduction in the  cost
basis of the Common Stock.  If the Company fails to qualify as  a
REIT  in  any  taxable year, it will be taxed as  a  corporation.
Distributions to the stockholders will not be deductible by the




Description of Business. (continued)

Company in computing its taxable income but will be eligible  for
the  dividends  received deduction for corporations;  and  unless
entitled  to  relief  under  specific statutory  provisions,  the
Company  will  be ineligible for REIT status for  the  next  four
taxable years.

Item 2.  Description of Property.

   The operations of the Company are conducted from approximately
13,100  square feet of office space which was leased by  Congress
Street Properties, Inc. prior to December 31, 1994 and is located
at  300  One  Jackson  Place, 188 East Capitol  Street,  Jackson,
Mississippi.  On December 31, 1994 the Company entered into a new
Administration Agreement with EastGroup Properties.  On March 31,
1995 this agreement was terminated.  However, all operations
will be conducted in the same office space as noted above and all
leasing  arrangements  will be the responsibility  of  EastGroup.
The  Company  does not own or lease properties other  than  those
carried as part of its real estate investment portfolio discussed
below and in Note C to the financial statements.

  The Company's primary investments in real estate related assets
are summarized below.

  Mortgage Loans

  Citrus  Center.   This  20.99% mortgage loan  participation  is
  secured  by a 136,228 square foot shopping center in Inverness,
  Florida  and has an outstanding principal balance of $1,868,000
  and  net  carrying  value of $1,593,000 at December  31,  1995.
  The   other   79.01%  of  this  mortgage  loan,  amounting   to
  $7,045,000,  is  held  by a mortgage fund.   This  project  was
  funded in 1988 and was scheduled to mature May 31, 1998.
    However,  the  borrowers on the Citrus Center  mortgage  loan
  failed  to  make five scheduled payments during 1993 and  1994.
  As  a  result of this default, the investment was written  down
  to  its estimated fair value by recording an allowance for loss
  of  $275,000  at December 31, 1994 and writing off all  accrued
  interest  on the loan. The interest rate on this mortgage  loan
  was 9% with payments of principal and interest due monthly.  In
  June  1995, a Modification Agreement between the borrowers  and
  the  Company  was agreed on.  The Modification called  for  the
  interest  rate  to  be reduced from 9% to 8%,  with  1%  to  be
  deferred  until the note matures on November 30,  1998.   Also,
  of  the  five past due payments, the two payments most  current
  were brought current, with the three remaining payments




Description of Property. (continued)

  becoming  due  on November 30, 1998. As of December  31,  1995,
  the   borrowers  have  made  all  payments  agreed  to  in  the
  Modification   Agreement.   During  1995,   the   Company   has
  recognized  interest income of $174,000 as compared to  $85,000
  in 1994.  The shopping center is 84% occupied at year end.

  West  Houston, Ltd.  In the September 1993 sale of a 1,108 acre
  parcel  of  the  Houston  land, the Company  received  cash  of
  $1,108,000  and a mortgage note receivable of $3,324,000.   The
  terms  of  the note include interest at the prime lending  rate
  (8.75%  at year-end); payments of interest only for 18  months,
  increasing thereafter to fixed principal and interest  payments
  based  on  a  20-year amortization; and, maturity on  September
  17,  1999.   After being discounted to yield a market  rate  of
  interest,  the  note has a net carrying value of $3,074,000  at
  December 31, 1995.

  MBSLD,Ltd.  On  March 18, 1994, the Company sold  an  8.5  acre
  parcel  of the unimproved Houston land to MBSLD, Ltd., a  Texas
  limited  partnership.  The Company received $44,000  cash  (net
  of  closing costs) and a first mortgage of $200,000.  The terms
  of  the note include 36 monthly principal and interest payments
  beginning  on  May  1,  1994  that  are  based  on  a   15-year
  amortization  accruing  interest at 8  percent.   The  next  24
  monthly  payments  will accrue interest at  the  lower  of  the
  prime  rate  plus  1.5% or a fixed rate of 10%.   On  April  1,
  1999,  a final principal payment of $158,000 becomes due  along
  with  any  remaining accrued interest.  No  gain  of  loss  was
  recorded  at  the time of this sale, and the principal  balance
  of this loan at year-end was $146,000.

  Baypointe.  On  April  20, 1995, the Company  sold  a  90  acre
  parcel   of   land  located  in  Houston,  Texas   to   Elektra
  Enterprises, Inc.  The Company received $550,000 in cash and  a
  mortgage note receivable of $2,200,000.  The terms of the  note
  call  for semi-annual principal and interest payments for  four
  years.   These  payments are based on a 20  year  amortization,
  and  the note is due after four years.  Interest accrues on the
  unpaid  balance at the rate of 9.5% for the first 3  years  and
  at  prime  plus 1.5% (with a 12% ceiling) for the fourth  year.
  A  gain  of  $535,000  was recognized  on  this  sale  and  the
  principal balance of this loan at year-end was $2,046,000.








Description of Property. (continued)

  Real Estate Properties

  Linpro  Commerce  Center.  This 99,000 square  foot  commercial
  building  in Fort Lauderdale, Florida, was acquired on December
  16,  1992  through  a  deed in lieu of foreclosure  on  a  land
  purchase-leaseback  investment of  $1,200,000  and  a  mortgage
  loan  investment  with a net book value of $3,930,000.   Linpro
  is  located  in  the  Central Broward  County  submarket  which
  houses  industrial distribution, mixed use, and  office/service
  users.   Office/service  buildings in this  corridor  typically
  lease  in  the  range  of  $6.50 - $9.00  net,  with  operating
  expenses  from  $2.65 to $3.80 per square foot.  Vacancy  rates
  along  this  corridor for office/service use  is  approximately
  11%.   Linpro is used as an office, showroom and warehouse  and
  was  95%  occupied and 100% leased at December 31,  1995.   The
  asset  was  recorded at its estimated fair value of $3,800,000,
  resulting  in a loss of $1,350,000 during 1992. It  has  a  net
  book value of $3,730,000 at December 31, 1995.

   The  following  table sets forth certain operating  data  with
   respect to the property over the last five years (not owned by
   LNH in 1991 and from January 1, 1992 to December 15, 1992):
   
                                        Year Ended
                                        December 31,
                              1991   1992   1993   1994    1995
   
   Occupancy rate
     (at end of period)        95%    95%    85%    95%     95%
   Total rent per
      leased square foot     $5.90  $4.59  $4.77  $4.13   $4.94
   
          The  following  table  sets forth  certain  information
   regarding the leases of the tenants that occupy more than  10%
   of the rentable square footage at December 31, 1995:

                      Progressive     Major      Pride
                         Games       Supply     Outdoor    Lennox
  Minimum rent
     per year           $59,000     $100,000    $60,000   $76,000
  Expiration date         1997         1997       1998      1998
  Renewal option      2/2 yrs.     1/2 yrs.   2/2 yrs.  2/5 yrs.
                            ea.          ea.        ea.       ea.

  Lease expirations by year of expiration for all tenants as of
   December 31, 1995 are as follows (dollars in thousands):




Description of Property. (continued)

                                 1997      1998     1999     2000
  Number of leases expiring        3         3        1        1
  Total area (in sq.ft.)      43,000    32,500    9,500    9,000
  Annual rental                 $199      $159      $52      $46
  Percent of annual rental     43.6%     34.8%    11.4%    10.2%

       Based  upon  its  experience to date,  LNH  believes  that
   leases expiring in 1997 will be renewed (or replaced with  new
   tenants  in a few cases) at minimum rentals at least equal  to
   existing  rents  for  leases.   However,  LNH  can   give   no
   assurance in this respect.

            The realty taxes for the year ended December 31, 1995
   amounted  to  $78,000.  The federal income tax  basis  of  the
   property  at  December 31, 1995 was $5,203,000.  LNH  believes
   that the property is adequately covered by insurance.

  Liberty  Corners.  This 121,432 square foot shopping center  in
  Liberty, Missouri, was acquired on February 25, 1994 through  a
  deed  in lieu of foreclosure on a mortgage loan investment with
  a  book value of $6,689,000 and a carrying value of $5,294,000.
  The  Company  owns  77.78% of the investment  and  records  the
  total  assets, liabilities, revenues and expenses of the center
  with  minority  interests provided for the  22.22%  not  owned.
  The  asset  was  recorded  at  its  estimated  fair  value   of
  $6,806,000,  which includes the 22.22% minority interest  share
  of  $1,512,000.  The property was built in 1987 and is  one  of
  five  major  centers in Liberty, ranging in  size  from  17,300
  square  feet to our 121,382 square foot center.  Rents  in  the
  market range from an asking price of $6.00 to our asking  rents
  in  the $10.00 per square foot range.  The shopping center  was
  85%  occupied  at  year  end.  It  has  a  net  book  value  of
  $6,185,000  at December 31, 1995, which includes  the  minority
  interest share of $1,476,000.
   
   The  following  table sets forth certain operating  data  with
   respect to the property during the period owned by LNH:
   
                                                  Year Ended
                                                  December 31,
                                                  1994   1995
   Occupancy rate (at end of period)               83%    85%
   Total rent per leased square foot             $6.74  $6.81
   
          Despite research of the Company's files and those  held
   by   the   property's  management  company,  the   information
   disclosed in the above table was not available for 1991,  1992
   and 1993.



Description of Property. (continued)

          The  following  table  sets forth  certain  information
   regarding  the  lease of the only tenant  that  occupies  more
   than 10% of the rentable square footage at December 31, 1995:

                            Price
                           Chopper
  Minimum rent
     per year              $290,000
  Expiration date             2007
  Renewal option       4/5 yrs. ea.


   Lease expirations by year of expiration for all tenants as  of
December 31, 1995 are as follows (dollars in thousands):

                       1997   1998   1999    2000    2002    2007
  Number of
   leases expiring       5      3      2       4       1       1
  Total area
    (in sq.ft.)      10,650  6,700   9,850  18,070  1,400  56,000
  Annual rental        $99    $68     $73    $157    $12    $290
  Percent of
    annual rental     14.2%   9.7%   10.4%   22.5%   1.7%   41.5%

          Based  upon  its experience to date, LNH believes  that
   leases expiring in 1997 will be renewed (or replaced with  new
   tenants  in a few cases) at minimum rentals at least equal  to
   existing  rents  for  leases.   However,  LNH  can   give   no
   assurance in this respect.

            The realty taxes for the year ended December 31, 1995
   amounted  to  $147,000.  The federal income tax basis  of  the
   property  at  December 31, 1995 was $6,567,000.  LNH  believes
   that the property is adequately covered by insurance.


   Cowesett  Corners.  This 135,713 square foot  shopping  center
   in  Warwick,  Rhode Island, was acquired on December  1,  1995
   through  foreclosure  and the Company recorded  its  net  loan
   investment of $5,971,000 as an investment in a joint  venture.
   The  company owns 50% of the investment and accounts for  this
   investment   on   the  equity  method  of   accounting.    The
   investment  at  December  31,  1995  amounted  to  $6,011,000.
   Cowesett  is  situated  in  the  Warwick  Route  2  commercial
   corridor which is the primary retail area for Providence and





Description of Property. (continued)

     the  State of Rhode Island.  Within this submarket  Cowesett
   is  the  premier  supermarket  anchored  strip  type  shopping
   center.   The  Warwick retail market, due to  its  diversified
   economic  base,  has  generally been more resilient  than  the
   overall  Rhode  Island economy.  The shopping  center  is  97%
   leased at December 31, 1995.


   The  following table sets forth certain operating data of  the
   previous owner with respect to the property over the last five
   years:
   
                                        Year Ended
                                        December 31,
                              1991   1992   1993   1994    1995
   
   Occupancy rate
     (at end of period)        84%    86%    86%    86%     97%
   Total rent per
      leased square foot     $8.84 $9.37  $9.57  $9.75   $9.89

        The   following  table  sets  forth  certain  information
   regarding the leases of the tenants that occupy more than  10%
   of the rentable square footage at December 31, 1995:
                                                         Edwards
                            Super        Sportswear      Paint &
                         Stop N'Shop     Store, Inc.  Decorating
  Minimum rent per year   $500,000      $213,000       $135,000
  Expiration date             2007          1998           2005
  Renewal option      6/5 yrs. ea.    2/5 yrs. ea.  3/5 yrs. ea.

  Lease expirations by year of expiration for all tenants as of
   December 31, 1995 are as follows (dollars in thousands):

                                 1996      1997     1998     2000
  Number of leases expiring        3         1        8        3
  Total area (in sq.ft.)       4,646       900   37,343    8,757
  Annual rental                  $64       $14     $411     $121
  Percent of annual rental      4.6%      1.0%    29.4%     8.6%


                                 2001      2005     2007     2010
  Number of leases expiring        2         1        1        1
  Total area (in sq.ft.)      10,727    17,059   55,532    5,599
  Annual rental                 $105      $135     $500      $50
  Percent of annual rental      7.5%      9.6%    35.7%     3.6%



Description of Property. (continued)

          Based  upon  its experience to date, LNH believes  that
   leases  expiring in 1996 and 1997 will be renewed (or replaced
   with  new tenants in a few cases) at minimum rentals at  least
   equal to existing rents for leases.  However, LNH can give  no
   assurance in this respect.

          The  realty taxes for the year ended December 31,  1995
   amounted  to  $285,000.  The federal income tax basis  of  the
   property  at  December 31, 1995 was $5,964,000.  LNH  believes
   that the property is adequately covered by insurance.

  Unimproved  Land.   In December 1990, the  Company  received  a
  deed  in  lieu  of  foreclosure on a mortgage  loan  investment
  collateralized by approximately 1,360 acres of unimproved  land
  in  Houston, Texas. At December 31, 1995, the company had three
  remaining  parcels (approximately 141 acres) with  a  net  book
  basis of $776,000.

  Marketable Equity Securities

  Liberte'  Investors.  The Company owns 300,000 shares  of  this
  company,   which  was  formerly  known  as  Lomas  &  Nettleton
  Mortgage  Investors  and was managed by a  subsidiary  of  LFC.
  The  investment  has a carrying value and  a  market  value  of
  $675,000  ($2.25 per share) at December 31, 1995.  No dividends
  have been received from this investment since 1990.

Item 3.  Legal Proceedings.

  The Company initiated foreclosure proceedings against the owner
of  Cowesett Corners Shopping Center, Cowesett Partners, L.P., in
February  1995,  as the result of the owner's June  1993  default
under  the  terms  of  a  certain Mortgage  Deed  (with  Security
Agreement  and  Assignment of Rents and Leases) dated  March  31,
1988, and a certain Modification of Lien Agreement.  The Mortgage
and  modification of Lien Agreements secured two Promissory Notes
Payable  to  the  Company  and  a  50%  participant  with  unpaid
principal  balances  of $11,975,000 and $25,000.   The  Company's
foreclosure  was stayed by the filing of bankruptcy  by  Cowesett
Partners,  L.  P.  on February 13, 1995 in Rhode  Island.   After
various  motions with respect to whether LNH and its  co-investor
should  be  able  to foreclose on the Cowesett  Corners  Shopping
Center  and  sell it at public auction, an agreement was  reached
and  approved by the Court pursuant to which the Cowesett Corners
Shopping  Center was to be sold to an unrelated third  party  and
LNH  and its co-investor would release their lien on the Cowesett
Corners  Shopping  Center  in  return  for  a  cash  payment   of
$13,250,000, of which $6,625,000 was to be paid to LNH.  The

Description of Property. (continued)


potential  purchaser  of  the Cowesett  Corners  Shopping  Center
decided  not  to  proceed  with  the  transaction.   Because  the
proposed  sale  did  not  take place by  the  November  30,  1995
deadline,  LNH and its co-investor foreclosed their lien  on  the
property and took title to the property on December 1, 1995.

Item 4.  Submission of Matters to Vote of Security Holders.

  None.

PART II


Item  5.   Market  for  Common  Equity  and  Related  Stockholder
Matters.

   The  Company's common stock, $.50 par value, is traded on  the
New  York  Stock  Exchange under the symbol LHC.   The  following
table  indicates the high and low share prices for  each  quarter
during  the  past two years and per share distributions  declared
for the quarter.
                        1995                          1994
                 Stock Price      Cash       Stock Price     Cash
Dividends                Dividends
Quarter Ended    High    Low    Declared   High    Low   Declared

March 31   $ 6 5/8  $ 5 3/4     $  .75     $8 7/8  $7 7/8 $   .14
June 30      6 3/4    6            .09      8 7/8   7 3/4     .14
September 30 7 3/8    6 1/4        .09      9 1/4   6 1/2    1.59
December 31  7 3/4    7 1/8        .15      7       6 1/8     .09
                                $ 1.08                     $ 1.96

As of March 18, 1996, there were 502 holders of record of the
Company's common stock.

Item 6.  Management's Discussion and Analysis

Financial Condition

   Assets of the Company decreased by $959,000 during 1995, to  a
balance  of  $25,675,000 at December 31, 1995.  Total liabilities
increased  from $2,003,000 at December 31, 1994 to $2,226,000  at
December 31, 1995.

   The  Company's mortgage loans balance (inclusive  of  mortgage
loans  subject  to foreclosure proceedings) decreased  $3,974,000
during  the fiscal year.  This decrease was primarily due to  the
foreclosure of the Cowesett Corners Shopping Center.  The Company
acquired  Cowesett through foreclosure on December 1,  1995,  and
recorded  its  50%  of  the  investment  at  its  book  value  of
$5,971,000  (net of $29,000 in unamortized financing fees).   Due
to the Company only owning 50% of the property, the investment is
a joint venture. The Company recorded $40,000 as its 50% share of
the  Shopping Center's operating income for the month of December
1995. Also, a loan of $2,200,000 was made by the Company for  the
sale of the 90 acre Baypointe property located in Houston, Texas.
In addition, the Company collected principal payments of $269,000




Management's Discussion and Analysis (continued)

Financial Condition (continued)

on  loans  and  recognized loan discounts and deferred  financing
fees of $62,000 during the fiscal year.

   The Company closed three sales of its Houston land during  the
fiscal year ended December 31, 1995. During the first quarter  of
1995 the Company sold a 2.78 acre and 12.26 acre tract of Houston
land.   The  Company received cash of $265,000  (net  of  closing
costs) for these sales.  No gain or loss was recognized on  these
sales.   On April 20, 1995, the Company closed a 90 acre sale  of
its  Baypointe  property for $550,000 in cash and  $2,200,000  in
seller  financing.  As part of the seller financing,  a  $137,500
principal  payment  was  due within 45  days  of  closing.   This
payment  was  made  on  June 8, 1995.  A  gain  of  $535,000  was
recognized during the second quarter of 1995.

   The  Company  spent  $94,000 for improvements  to  the  Linpro
Commerce  Center  and  recorded $168,000 in  depreciation  during
1995.   Improvements  to  Liberty Corners  totalled  $37,000  and
$201,000  in  depreciation  was  recorded  during  1995  (amounts
include 22.22% minority interest.)

   The  Company  also wrote down its investment  in  the  Liberty
Corners  Shopping  Center  by $439,000.  The  resulting  carrying
value,   net   of  minority  interest,  of  $4,650,000   reflects
management's  best  estimate  of the  property's  net  realizable
value.

  During 1995, the Company recorded a recovery of a provision for
loss  of  $250,000 related to the mortgage loan on  the  Cowesett
Corners Shopping Center.  At December 31, 1995, the allowance for
losses relates to the Citrus Center mortgage loan.

   The  increase  in other liabilities is primarily  due  to  the
collection  of  cash from the operations of the Cowesett  Corners
Shopping  Center,  which  is held in an interest  bearing  escrow
account.

    Shareholders'  equity  decreased  $1,182,000   during   1995,
reflecting net income of $1,044,000, dividends declared and  paid
of  $2,376,000 and an unrealized gain of $150,000 recorded on the
Company's available-for-sale securities. The Company's investment
in 300,000 shares of Liberte' Investors common stock is






Management's Discussion and Analysis. (continued)

Financial Condition (continued)

considered available for sale.  The shares have a book value  and
a market value of $2.25 per share at December 31, 1995.

Results of Operations

   Income  before gain on investments was $509,000 for  the  year
ended  December  31,  1995 compared to  $124,000  in  1994.   The
Company recorded a gain on investments of $535,000 related to the
sale of the 90 acre Baypointe land in Houston, Texas for the year
ended  December  31,  1995.   The  Company  recorded  a  gain  on
investments  of $135,000 related to the payoff of the  Rivercrest
apartment mortgage loan during the year ended December 31,  1994.
Net  income  was $1,044,000 ($.47 per share) for the  year  ended
December 31, 1995 compared to $259,000 ($.12 per share) in 1994.

   Interest  income on mortgage loans increased  $315,000  during
1995  compared  to 1994, reflecting the interest  earned  on  the
Baypointe  land loan ($137,000), increased interest  received  on
the   Cowesett  Corners  Shopping  Center  loan  ($163,000),  and
increased  interest received on the Citrus Center  mortgage  loan
($89,000).   These three loans had a positive impact on  mortgage
loan  interest  income of $389,000 during the current  year,  but
were  offset by a $145,000 decrease in interest received  on  the
Rivercrest (paid off in 1994) and Liberty Corners (foreclosed  in
1994)  mortgage  loans and a $71,000 increase in interest  income
received on the loans related to the Houston parcels of land.

        The  Cowesett Corners mortgages, with a total outstanding
principal  balance  of $6,000,000, went into default  on  May  1,
1993.  For  a  time, the borrower continued making payments  from
cash  flow  under a short-term work out agreement.  However,  the
Company discontinued the accrual of interest income from the loan
and recorded interest income on the cash basis since the owner of
Cowesett Corners filed for bankruptcy in February 1995.  Also  as
a  result of the bankruptcy proceedings, LNH recorded a provision
for  loss  of  $250,000 at December 31, 1994 to  reduce  the  net
carrying  value of the loan to the estimated fair  value  of  the
investment.   During 1995, the operating cash  flow  of  Cowesett
Corners  was  required  to be placed in a court  approved  escrow
account.   As  of  December  31,  1995,  LNH  used  the  escrowed
$1,431,000 cash from operations of the Cowesett Corners  Shopping
Center to pay past due property taxes and sewer assessments and






Management's Discussion and Analysis (continued)

$183,000  for operating expenses.  In January 1996,  the  Company
received  an  additional  $110,000 cash from  operations  of  the
Cowesett Corners Shopping Center in December.  The cash remaining
in  the escrow account after the above transactions was $423,000.
The  Company  recorded  $211,000 (its 50% interest)  as  interest
income  in  December 1995.  Total interest income  due  for  1995
based  on  the  terms of the note was $568,000  and  the  Company
recorded  total  interest  income  of  $222,000  for  1995.    In
September  1995, the Company learned of a proposed  sale  of  the
Cowesett Corners Shopping Center to a third party for $13,250,000
(includes participants 50% interest).  Because the sale  did  not
close  by November 30, 1995, LNH foreclosed on December 1,  1995,
and  Cowesett  and the Trustee waived any right to  seek  further
stay  of  the  foreclosure  sale.  In  addition,  based  on  this
proposed  sale  an entry to record the recovery of  the  $250,000
provision for loss was made in September 1995.

   The  Citrus  Center mortgage, with an outstanding  balance  of
$1,868,000, went into default on December 1, 1993.  The borrowers
had  failed to make five scheduled payments. The Company recorded
a  provision for loss of $275,000 at December 31, 1994  to  write
down  the  investment to its estimated net realizable value.   In
June 1995, a Modification Agreement between the borrowers and the
Company  was agreed on.  Basically, the Modification  called  for
the  interest  rate to be reduced from 9% to 8%, with  1%  to  be
deferred  until the note matures on November 30, 1998.  Also,  of
the  five  past due payments, the two payments most current  were
brought  current, with the three remaining payments becoming  due
on November 30, 1998. As of December 31, 1995, the borrowers have
made  all  payments  agreed  to  in the  Modification  Agreement.
During  1995, the Company recognized interest income of  $174,000
as compared to $85,000 in 1994.

   Due  to  the  payoff of the Rivercrest mortgage loan  and  the
foreclosure  of  the Liberty Corners mortgage loan  in  1994,  no
interest was recorded on these loans in 1995 compared to $145,000
in 1994.

   The  foreclosure of the Liberty Corners mortgage loan accounts
for  the increase in revenue from real estate owned, the increase
in  depreciation  expense and the increase in  minority  interest
expense  for the year ended December 31, 1995 compared  to  1994.
Only  ten months of revenue and expense from Liberty Corners  was
included  during 1994 while twelve months was included  in  1995.
The  decrease in real estate operating expense for the year ended
December  31,  1995, compared to 1994 was due to lower  costs  of
property taxes, insurance expense and repair and maintenance.



Management's Discussion and Analysis. (continued)

   The  decrease in other income is primarily due  to  the  total
assignment price of the management contract being paid off in the
second  quarter  of  1995  and the Company  receiving  a  $91,000
payment  in  1994 for the settlement of the Liberte' stock  class
action  suit.   The  Company recorded management  fee  income  of
$41,000 in 1995 compared to $125,000 in 1994.

   Management fees are calculated as a percentage of total assets
each  month (based on a 1.25% per annum fee of the daily weighted
average balance of total assets), and total fees decreased during
1995  primarily  as a result of a decrease in the management  fee
base of average invested assets from $24,749,000 at December  31,
1994 to $23,301,000 at December 31, 1995.

   The increase in professional fees is primarily the legal costs
incurred in foreclosure proceedings against the borrowers of  the
Cowesett  mortgage  loan,  and costs  from  the  proposed  merger
between EastGroup Properties and LNH REIT, Inc.

  The increase in General and Administrative expense is primarily
due  to  increased  costs of insurance and stockholder  relations
expense.

   Based  on a third party offer for the purchase of the Cowesett
Corners  Shopping  Center,  a  recovery  of  possible  losses  of
$250,000 was made during the third quarter of 1995.  In addition,
management estimated the fair market value of the liberty Corners
Shopping  Center  to be $4,650,000 and a provision  for  loss  of
$439,000 was recorded to reduce the property's carrying value  to
the estimated fair market value.

Liquidity and Capital Resources

        The  Company's  primary sources of funds continue  to  be
monthly principal and interest payments on its mortgage loans and
net  operating income from real estate properties.   The  Company
believes  that  these  funds,  along  with  cash  balances,   are
sufficient  to  meet its long and short-term operating  needs  as
well as to continue the payment of cash dividends as required for
its continued qualification as a real estate investment trust.

   At  December 31, 1995, the Company had $1,016,000 in cash  and
cash equivalents available for general corporate use.  During the
first quarter of 1995, the Company completed two sales of Houston
acreage.   The Company received cash of $48,000 (net  of  closing
costs)  for  the sale of a 3 acre portion of one parcel,  and  it
received cash of $217,000 (net of closing costs) for the sale  of
a 12 acre portion of a separate parcel. During the second quarter


Management's Discussion and Analysis. (continued)

Liquidity and Capital Resources (continued)

of  1995,  the Company completed another sale of Houston acreage.
The  Company received $360,000 (net of closing costs)for the sale
of the 90 acre Baypointe tract.

        The  Company's portfolio of investments has been impacted
negatively  by the generally depressed condition of the  national
real  estate markets that persisted in the early 1990s.  A number
of factors contributed to these depressed conditions including  a
surplus of retail real estate of every type in almost every major
market  and real estate acquired through foreclosure by financial
institutions, the Federal Deposit Insurance Corporation  and  the
Resolution Trust Corporation being placed on the market for  sale
or  lease at distressed prices.  Although the current real estate
conditions have generally improved, borrowers that depend on cash
flow  from  real estate projects to meet operating  expenses  and
interest  payments may continue to be adversely affected.   This,
in turn, will continue to have a negative impact on the operating
results  of  the Company if its borrowers fail to make  scheduled
principal and interest payments.

        Three  of  the  Company's mortgage loans defaulted  under
terms  of  the  original notes during 1993.  The Liberty  Corners
mortgage  went  into  default on July 1,  1993  and  the  Company
received  a  deed  in  lieu of foreclosure  on  the  property  on
February 25, 1994.  The Company owns 77.78% of the investment and
records  the total assets, liabilities, revenues and expenses  of
the  center  with minority interest provided for the  22.22%  not
owned.   The  loan had a $5,294,000 balance net of allowance  for
losses and deferred income, and the Company recorded the asset at
$6,806,000,  which  included  the participant's  22.22%  minority
interest of $1,512,000.

        The  Cowesett Corners mortgages, with a total outstanding
principal  balance  of $6,000,000, went into default  on  May  1,
1993. The borrower continued making payments from cash flow under
a   short-term   work  out  agreement.   However,   the   Company
discontinued  the accrual of interest income from  the  loan  and
recorded  interest income on the cash basis since  the  owner  of
Cowesett  Corners  filed for bankruptcy  in  February  1995.  The
Company  foreclosed the property on December 1, 1995 and recorded
its   50%   participation  of  $5,971,000  (net  of  $29,000   in
unamortized financing fees) as a joint venture.






Management's Discussion and Analysis. (continued)

Liquidity and Capital Resources (continued)


       The Citrus Center mortgage, with an outstanding balance of
$1,868,000, went into default on December 1, 1993.  The borrowers
had  failed to make five scheduled payments and, as a result, the
Company recorded a provision for loss of $275,000 at December 31,
1994 to write down the investment to its estimated net realizable
value.   In  June  1995,  a Modification  Agreement  between  the
borrowers  and  the  Company  was  agreed  on.   Basically,   the
Modification called for the interest rate to be reduced  from  9%
to  8%, with 1% to be deferred until the note matures on November
30,  1998.  Also, of the five past due payments, the two payments
most current were to be brought current, with the three remaining
payments  becoming due on November 30, 1998. As of  December  31,
1995,  the  borrowers have made all payments  agreed  to  in  the
Modification Agreement.  During 1995, the Company has  recognized
interest income of $174,000 on this loan.  The Company's mortgage
loan portfolio performance during 1995 has been dependent on  the
ability  of  the Citrus Center owners to meet the  terms  of  the
Modification  Agreement  and  the  settlement  obtained  in   the
Cowesett Corners bankruptcy proceedings.  While management of the
Company does not believe it will incur additional losses on these
investments, there can be no assurance that the defaults will  be
cured  at terms as favorable to the Company as the original  note
terms.

        It is the Company's policy, consistent with its status as
a  real  estate investment trust, to distribute at least 100%  of
taxable  income.  During 1995, the Company paid distributions  to
its stockholders of $2,376,000 ($.1.08 per share), which included
a special dividend of $1,452,000 ($.66 per share).

        On  September 6, 1995 (amended on December 6, 1995),  LNH
REIT,  Inc.  and  EastGroup Properties, Inc. announced  that  the
Special  Committees of the Boards of each company had  agreed  in
principle  to a merger between LNH and EastGroup.  The  Company's
shareholders would receive shares of EastGroup with  a  value  of
$8.10  for  each LNH share.  The number of EastGroup shares  that
LNH  shareholders  receive would be determined  by  dividing  the
value  $8.10  by  the average trading price of  EastGroup  shares
during  the  10 trading days prior to the effective date  of  the
merger.   EastGroup presently owns 23.4% of LNH.  The  merger  is
subject  to  several conditions, including shareholder  approval,
receipt   of   a  satisfactory  fairness  opinion  by   LNH   and
registration of the EastGroup shares to be issued in  the  merger
with the Securities and Exchange Commission.

Item 7. Financial Statemetns.

                  INDEX OF FINANCIAL STATEMENTS


Report of Independent Auditors.........................  21

Consolidated Financial Statements:
     
     Balance Sheets as of December 31, 1995 and 1994...  22
     
     Statements of Operations for the years ended
       December 31, 1995 and 1994......................  23
     
     Statements of Cash Flows for the years ended
       December 31, 1995 and 1994......................  24
     
     Statement of Stockholders' Equity for the years
       ended December 31, 1995 and 1994................  25
     
     Notes to Financial Statements.....................  26





REPORT OF INDEPENDENT AUDITORS

Stockholders and Board of Directors
LNH REIT, Inc.

    We have audited the accompanying consolidated balance sheets
of LNH REIT, Inc. and subsidiaries as of December 31, 1995 and
1994, and the related consolidated statements of operations,
stockholders' equity, and cash flows for the years then ended.
These financial statements are the responsibility of the
Company's management.  Our responsibility is to express an
opinion on these financial statements based on our audits.

  We conducted our audits in accordance with generally accepted
auditing standards.  Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement.  An
audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An
audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating
the overall financial statement presentation.  We believe that
our audits provide a reasonable basis for our opinion.

    In our opinion, the financial statements referred to above
present fairly, in all material respects,  the consolidated
financial position of LNH REIT, Inc. and subsidiaries at December
31, 1995 and 1994, and the consolidated results of their
operations and their cash flows for the years then ended in
conformity with generally accepted accounting principles.

                                                \s\ Ernst & Young LLP

                                                ERNST & YOUNG LLP

Jackson, Mississippi
March 15, 1996



                   CONSOLIDATED BALANCE SHEETS
                         (In thousands)
                                
                                               December 31
                                      --------------------------
                                             1995           1994
                                       ------------    ----------

Assets
Mortgage loans                          $     7,135   $    5,149
Mortgage loans subject to foreclosure
  proceedings                                     -        5,960
Real estate properties:
  Earning
    Warehouse                                 4,166        4,073
    Shopping center                           6,465        6,867
    Accumulated depreciation                   (796)        (427)
  Joint venture in Cowesett                   6,011            -
  Non-earning land                              776        3,067
                                        -----------   ----------
                                             23,757       24,689
Less allowance for losses                      (275)        (525)
                                        -----------   ----------
                                             23,482       24,164
Marketable equity securities                    675          525
Cash and cash equivalents                     1,016        1,660
Accrued interest and other receivables          502          285
                                        -----------   ----------
                                        $    25,675   $   26,634
                                        ===========   ==========
Liabilities
Minority interest                       $     1,476   $    1,510
Accrued expenses and other liabilities          750          493
                                        -----------   ----------
                                              2,226        2,003
                                        -----------   ----------
Stockholders' Equity
Common stock, $.50 par value,
  15,000,000 shares authorized,
  2,200,000 shares issued and
  outstanding in 1995 and 1994                1,100        1,100
Paid in capital                              24,839       27,215
Deficit                                      (2,996)      (4,040)
Unrealized gain on marketable
  equity securities                             506          356
                                        -----------    ---------
                                             23,449       24,631
                                        -----------   ----------
                                        $    25,675   $   26,634
                                        ===========   ==========
         See notes to consolidated financial statements

              CONSOLIDATED STATEMENTS OF OPERATIONS
              (In thousands, except per share data)

                                         Year Ended
                                         December 31
                                     -------------------
                                          1995      1994
                                     --------    -------
Revenues                                         
Revenue from real estate properties     $1,451    $1,249
Interest income:                                 
  Mortgage loans                           889       574
  Cash equivalents and other                52       101
Equity in operation of                                  
  Cowesett joint venture                    40         -
Other income                                47       226
                                      --------    ------
                                         2,479     2,150
                                      --------    ------
Expenses                                                
Management fees                            294       338
Real estate expenses                                    
  Operating                                521       605
  Depreciation                             369       277
Professional fees                          283        49
General and administrative                 216       178
Provision for losses                       189       525
Minority interest expense                   98        54
                                      --------   -------
                                         1,970     2,026
                                      --------   -------
                                                        
Income before gain on investments          509       124
                                      --------   -------
Gain on investments                                     
Real estate and mortgage loans             535       135
                                      --------   -------
Net Income                            $  1,044    $  259
                                      ========   =======
                                                        
                                                        
Net Income per share                   $   .47    $  .12
                                      ========   =======
                                                        
Average number of shares outstanding     2,200     2,200
                                      ========   =======
                                
         See notes to consolidated financial statements

              CONSOLIDATED STATEMENTS OF CASH FLOW
                         (In thousands)

                                               Year Ended
                                               December 31
                                       -------------------------
                                           1995           1994
                                       ----------     ----------
Operating Activities
  Net income                           $    1,044     $      259
   Adjustments to reconcile
   net income to net cash provided
   by operating activities:
    Amortization of deferred financing
      fees and discount on mortgage loans     (62)           (60)
    Depreciation                              378            277
    Joint Venture investment                  (50)             -
    Provision for losses                      189            525
    Gain on investments                      (535)          (135)
    Other                                     (45)           (35)
    Net change in receivables, payables
     and other assets                          49            (14)
                                      -----------     ----------
Cash provided by operating activities         968            817
                                      -----------     ----------
Investing Activities
  Collections on mortgage loans               269          3,999
  Improvements to real estate                (130)          (228)
  Proceeds from sale of real estate           625             44
                                      -----------     ----------
Cash provided by investing activities         764          3,815
                                      -----------     ----------
Financing Activities
  Dividends paid                           (2,376)        (4,312)
                                      -----------     ----------
Cash used in financing activities          (2,376)        (4,312)
                                      -----------     ----------
Net increase (decrease) in cash and
  cash equivalents                           (644)           320
Cash and cash equivalents at
  beginning of year                         1,660          1,340
                                      -----------     ----------
Cash and cash equivalents at
  end of year                         $     1,016     $    1,660
                                      ===========     ==========
                                
         See notes to consolidated financial statements
                                
                                
         CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
                         (In thousands)
                                

                                               Year Ended
                                               December 31
                                      --------------------------
                                           1995           1994
                                      -----------     ----------
Common stock, $.50 par value
  Balance at beginning and
  end of period                       $     1,100     $    1,100
                                      -----------     ----------
Paid-in capital
  Balance at beginning of period           27,215         31,527
  Cash dividends declared and paid         (2,376)        (4,312)
                                      -----------     ----------
  Balance at end of period                 24,839         27,215
                                      -----------     ----------
Deficit
  Balance at beginning of period           (4,040)        (4,299)
  Net income                                1,044            259
                                      -----------     ----------
  Balance at end of period                 (2,996)        (4,040)
                                      -----------     ----------
Unrealized gain on marketable
equity securities
  Balance at beginning of period              356              -
  Change in unrealized gain on
   securities                                 150            356
                                      -----------     ----------
  Balance at end of period                    506            356
                                      -----------     ----------
Total stockholders' equity            $    23,449     $   24,631
                                      ===========     ==========


         See notes to consolidated financial statements
                                
           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Business

       The  Company  operates as a real estate  investment  trust
("REIT")  under  Sections 856-860 of the Internal  Revenue  Code.
The  Company's revenues consist principally of rental income from
operating  real  estate  properties  and  interest  income   from
mortgage  loans.  At December 31, 1995, the Company's investments
consisted, principally, of four mortgage loans collateralized  by
real estate, three operating real estate properties (two shopping
centers  and one industrial distribution center), and undeveloped
land.

Proposed Merger

       On  September 6, 1995 (amended on December 6,  1995),  LNH
REIT,  Inc.  and EastGroup Properties announced that the  Special
Committees of the Boards of each company had agreed in  principle
to  a  merger  between LNH and EastGroup.   See  Note  L  to  the
Financial Statements for further details of this event.

Principles of Consolidation

   The consolidated financial statements include the accounts  of
LNH  REIT, Inc., its wholly owned subsidiaries and a 77.78% owned
joint  venture  (referred  to  collectively  as  "LNH"  or   "the
Company").   The  property included in the joint venture  is  the
Liberty Corners Shopping Center located in Kansas City, Missouri.
The Liberty Corners joint venture's assets, liabilities, revenues
and  expenses are recorded by the Company with minority  interest
provided  for the 22.22% not owned.  All significant intercompany
transactions and accounts have been eliminated in consolidation.

   For  years ending after December 31, 1992, the Company adopted
the financial statement reporting provisions of Regulation S-B of
the Securities and Exchange Commission.

Recognition of Interest Income

   Interest  is  taken  into income when  earned.    The  Company
discontinues the accrual of income when circumstances exist which
cause  the  collection  of  such  income  to  be  doubtful.   The
determination to discontinue accruing income is made after review
by  management  of  all relevant facts including  delinquency  in
payment of principal, interest and the credit of the borrower.
NOTE A - ACCOUNTING POLICIES (continued)

Revenue from Real Estate Properties

   Minimum  rents  are recognized ratably over  the  lease  term.
Rents  that  represent tenant reimbursements of certain  expenses
are  recognized  as the applicable services are provided  or  the
expenses  incurred and totalled $320,000 in 1995 and $300,000  in
1994.

Earnings Per Share

   Earnings per share is based on the average number of shares of
common stock outstanding during each year.

Use of Estimates

   The preparation of the financial statements in conformity with
generally  accepted accounting principles requires management  to
make  estimates and assumptions that affect the amounts  reported
in  the  financial  statements and  accompanying  notes.   Actual
results could differ from those estimates.

Real Estate Properties

  Foreclosed properties are recorded at the lower of cost or fair
value  at  the date of foreclosure.  A provision for  losses,  if
any,  is determined at the time of foreclosure in an amount equal
to  the  excess  of the recorded investment over  estimated  fair
value.   The  carrying  value  of  real  estate  properties   are
evaluated  in  relation to current estimates  of  net  realizable
value.  If necessary, a provision for losses is recorded to write-
down carrying value to the estimated net realizable value.

Depreciation

   Depreciation for financial reporting purposes is  provided  by
the  straight-line method over the estimated useful lives of  the
property.  Buildings  are depreciated over a  30  year  estimated
useful  life  and  tenant improvements over a  5  year  estimated
useful life.  Depreciation for tax reporting purposes is provided
by   the  straight-line  method  over  the  applicable   Modified
Accelerated Cost Recovery System (MACRS) life.
NOTE A - ACCOUNTING POLICIES (continued)

Allowance for Possible Losses

   Prior  to January 1, 1995, the Company followed the method  of
determining the allowance for possible losses prescribed  by  the
AICPA  Statement  of  Position on Accounting Practices  for  Real
Estate   Investment  Trusts.   Under  this  method,  the  Company
established  an  allowance for possible losses on mortgage  loans
based upon management's evaluation of the recoverability of  each
loan  in its portfolio through a comparison of the carrying value
of  an  investment with its estimated net realizable  value.   In
determining  estimated  net realizable  value,  consideration  is
given  to such factors as the financial condition of the borrower
and  the  determination of collectibility; the estimated  selling
price  a  property  will bring if exposed for sale  in  the  open
market allowing a reasonable time to find a purchaser; prevailing
economic  conditions;  expectations of  future  development;  the
estimated  cost  to  complete and improve such  property  to  the
condition  used in determining the estimated selling price;   the
cost  to  dispose  of  the property; and the  cost  to  hold  the
property  (including an interest factor based  on  the  Company's
cost of funds) to the estimated time of sale.

   Beginning  January  1,  1995, the  Company  adopted  Financial
Accounting Standards Board No. 114, "Accounting by Creditors  for
Impairment  of  a  Loan."   Under  the  new  standard,  the  1995
allowance  for credit losses related to loans that are identified
for  evaluation  in accordance with Statement  114  is  based  on
discounted cash flows using the loan's initial effective interest
rate  or  the fair value of the collateral for certain collateral
dependent  loans.  The effect of adopting FASB 114 on results  of
operations for 1995 and the allowance for possible losses was not
material.

   This  evaluation  is  inherently  subjective  as  it  requires
material  estimates including the amounts and  timing  of  future
cash flows expected to be received on impaired loans that may  be
susceptible to significant change.

NOTE A - ACCOUNTING POLICIES (continued)

Income Taxes

   The  Company qualified as a real estate investment trust under
Sections  856-860  of the Internal Revenue Code  and  intends  to
continue to qualify as such.  The Company has distributed all  of
its  taxable  income  to its shareholders, and,  accordingly,  no
provision for federal or state income taxes has been made and  no
income  taxes  have been paid.  Distributions paid per  share  in
1995 and 1994 for income tax purposes were as follows:


                                         1995     1994
                Ordinary Income        $  .05   $  .63
                Return of Capital        1.03     1.33
                    Total              $ 1.08   $ 1.96

   Taxable  income  differs from income  reported  for  financial
reporting  purposes primarily because of (1) the  timing  of  the
deduction  for  the provision for possible losses, writedowns  of
real  estate investments and losses on securities, (2)  different
depreciation  methods  and  lives, and  (3)  different  rates  of
interest income accrual.

Marketable Equity Securities

   On January 1, 1994, the Company adopted Statement of Financial
Accounting Standards No. 115, "Accounting for Certain Investments
in  Debt and Equity Securities" and classified its investments as
securities  available-for-sale.  Accordingly, as of December  31,
1995 and 1994, investment securities are carried at fair value
with  the unrealized gain of $506,000 and $356,000, respectively,
presented as a separate component of stockholders' equity.

Cash and Cash Equivalents

   Cash  and  cash  equivalents include cash on hand  and  highly
liquid  investments with original maturities of three  months  or
less.

Reclassifications

   Certain  amounts in the prior year financial  statements  have
been reclassified to conform to the current year's presentation.
NOTE B - MORTGAGE LOANS

     The unpaid balances of mortgage loans, summarized by type of
loan, are as follows:

                                                  December 31
                                                 1995     1994
       Type of Loan                             (In thousands)
         Shopping Centers.................    $ 1,868    $ 7,822
         Land ............................      5,267      3,287
                                              $ 7,135    $11,109

The unpaid balances of mortgage loans, which bear interest at  an
average  rate  of  8.91%, are scheduled to mature  in  succeeding
years as follows:

                          Year                      Amount
                                                (In thousands)
                          1996                      $   144
                          1997                          154
                          1998                        2,034
                          1999                        4,803
                                                   --------
                                                    $ 7,135
                                                   ========

   Because of the circumstances discussed in Note C regarding the
Cowesett  Corners Shopping Center, the interest  income  on  this
loan was accounted for on the cash basis.  The amount of interest
foregone  on this loan due to this accounting method was $346,000
and  $562,000  in the years ending December 31,  1995  and  1994,
respectively.

    The   amount   of  loan  discounts  and  related  accumulated
amortization  reflected as a reduction to the carrying  value  of
mortgage loans were as follows:
                                                December 31,
                                            1995           1994

       Loan  discounts                $  292,000       $  292,000
       Accumulated amortization         (108,000)        ( 59,000)
                                       ---------       ----------
                                       $ 184,000        $ 233,000


   The federal income tax basis of mortgage loans at December 31,
1995  is approximately $7,319,000. The federal income tax  return
for  the  year ended December 31, 1995 has not been  filed,  and,
accordingly,  the  income  tax basis  of  mortgage  loans  as  of
December 31, 1995 is based on preliminary data.

NOTE C - REAL ESTATE INVESTMENTS

       At  December  31, 1995, the Company's investment  in  land
includes  three  parcels of undeveloped land,  approximately  141
acres  in  total,  located in Houston, Texas.   The  land  has  a
carrying value of $776,000 at December 31, 1995.

       Also  included  in  real  estate investments  at  December
31,1995  are  the  Linpro  Commerce Center  in  Fort  Lauderdale,
Florida,  the  Liberty Corners shopping center  in  Kansas  City,
Missouri,  and the Cowesett Corners shopping center  in  Warwick,
Rhode Island.  The Linpro Commerce Center is a 99,000 square foot
industrial  building,  and it is used by tenants  as  an  office,
showroom  and warehouse.  Upon foreclosure in 1992, the  property
was recorded at its estimated fair value of $3,800,000, resulting
in a loss of $1,350,000.  At December 31,  1995, the property was
95% occupied.

       The  Liberty  Corners Shopping Center is a 121,432  square
foot commercial facility that was 85% leased at December 31,1995.
The  shopping  center  was collateral to a 77.78%  mortgage  loan
participation  the  Company owned with an  outstanding  principal
balance of $6,689,000 and a carrying  value, net of allowance for
losses  and deferred income, of $5,294,000.  The Company received
a  deed in lieu of foreclosure to Liberty Corners on February 25,
1994, and title to the property is held as tenants in common with
the  22.22%  participant  in  the  mortgage  loan.   The  Company
recorded the total assets, liabilities, revenues and expenses  of
the  center  with minority interest provided for the  22.22%  not
owned.    The   Company  recorded  the  original  investment   at
$6,806,000,  which  included  the participant's  22.22%  minority
interest of $1,512,000.  In December 1995, the carrying value  of
the   Liberty  Corners  Shopping  Center  was  adjusted  to   net
realizable  value.  The write-down of $439,000, net  of  minority
interest,  is  reflected  in  the  Company's  December  31,  1995
financial  statements.  The resulting carrying value  of  Liberty
Corners  is  management's best estimate  of  the  property's  net
realizable value.

       The  Cowesett Corners Shopping Center is a 135,713  square
foot  shopping  center  in Warwick, Rhode  Island.   The  Company
acquired  title  on  December  1, 1995  through  foreclosure  and
recorded  its net loan investment of $5,971,000 as an  investment
in  a joint venture.  The company owns 50% of the investment  and
accounts  for this investment on the equity method of accounting.
The  investment at December 31, 1995 amounted to $6,011,000.  The
shopping center was 97% leased at December 31, 1995.

NOTE C - REAL ESTATE INVESTMENTS - (continued)

       The  following is a schedule by year of future approximate
minimum  rental  receipts  under non-cancelable  leases  for  the
Linpro  Commerce  Center,  Liberty Corners  Shopping  Center  and
Cowesett Corners Shopping Center as of December 31, 1995:

                          Year                      Amount
                                                (In thousands)
                          1996                      $ 2,555
                          1997                        2,393
                          1998                        2,165
                          1999                        1,571
                          2000                        1,391
                      Subsequently                    6,998
                                                 ---------- 
                                                    $17,073


     The  federal  income  tax  basis  of  real  estate,  net  of
depreciation   as   of  December  31,  1995,   is   approximately
$19,661,000.   The federal income tax return for the  year  ended
December  31,  1995  has  not been filed, and,  accordingly,  the
income tax basis of real estate as of December 31, 1995 is  based
on preliminary data.

NOTE D - ALLOWANCE FOR LOSSES

      Activity in the allowance account was as follows:

                                          Year Ended December 31
                                           1995             1994

Beginning balance................. ....  $   525         $ 1,356
Provision for losses...................                      525
Charge-offs on foreclosures and sales..                   (1,356)
Recoveries of provisions for losses....     (250)
Ending balance.........................  $   275         $   525

       At  December 31, 1995, the recorded investment in mortgage
loans  that was considered to be impaired under FASB 114 was  one
mortgage   loan  (Citrus  Center)  with  a  carrying   value   of
$1,868,000.   This  loan, for which the  Company  owns  a  20.99%
participation,  was  modified in 1995.   The  interest  rate  was
reduced  from  9% to 8%, with the 1% difference  to  be  deferred
until  the  note matures on November 30, 1998.  Certain  payments
past due at June 1995 along with the unpaid principal balance  is
due  on November 30, 1998.  At December 31, 1995, the balance  of
the  allowance  for losses related to this mortgage  loan.   This
allowance ($275,000) had been recorded at December 31, 1994.  For
the years ended December 31, 1995 and 1994, the Company

NOTE D - ALLOWANCE FOR LOSSES (continued)

recognized interest income on this impaired loan of $174,000  and
$85,000,  respectively, compared to interest income according  to
its original terms of $172,000 in each year.

       During  the  year ended December 31, 1995  and  1994,  the
Company's  investment  in  a  mortgage  loan  collateralized   by
Cowesett  Corners Shopping Center was impaired and nonperforming.
At  December 31, 1994, the Company had recorded an allowance  for
losses related to this mortgage loan of $250,000.  Because of the
expected  pay-off  of  this mortgage loan in  1995,  the  Company
reduced  its  allowance for losses by this amount.  The  mortgage
loan was foreclosed effective December 1, 1995.  See Note C.  For
the   years  ended  December  31,  1995  and  1994,  the  Company
recognized interest income on this loan of $222,000 and  $58,000,
respectively,  compared  to  interest  income  according  to  its
original terms of $568,000 and $620,000, respectively.

NOTE E - RELATED PARTY TRANSACTIONS

       Until  April 1992, the Company was managed pursuant  to  a
Management  Agreement with L & N Housing Managers,  Inc.  ("Prior
Manager"),   a   wholly-owned  subsidiary  of   Lomas   Financial
Corporation  ("LFC").  The Prior Manager served as the  Company's
investment advisor, administering the day-to-day affairs  of  the
Company  and representing the Company in its dealing  with  third
parties,  subject  to the supervision of the Company's  Board  of
Directors.  LFC also owned 352,000 shares of the Company's common
stock.

       In  1992,  EastGroup  Properties, a Maryland  real  estate
investment  trust  ("EastGroup"),  and  Walker  Investments  L.P.
("Walker"),  purchased  352,000 shares of  the  Company's  Common
Stock from LFC.  The agreement pursuant to which the shares  were
purchased  (the  "Agreement") further  provided  that  the  Prior
Manager  would assign its rights and duties as manager under  the
Management Agreement to LNH REIT Managers, a Mississippi  general
partnership  (the "Manager") which is an affiliate  of  EastGroup
and  Walker.  The Management Agreement was amended to  substitute
the Manager for the Prior Manager under the Management Agreement.
EastGroup  and Walker agreed to pay an aggregate of  $406,000  to
the Company, in
consideration of the assignment of the Prior Manager's duties and
responsibilities as manager under the Management Agreement to LNH
REIT  Managers.   The  $406,000 has  been  paid  in  installments
subject to the maximum amount that the Company may receive  in  a
year  without  violating the 95% gross income test set  forth  in
Section 856(c) of the Internal Revenue Code.  The unpaid balance

NOTE E - RELATED PARTY TRANSACTIONS (continued)

of  the $406,000 accrued simple interest at the rate of 6.6%  and
the obligation of EastGroup and Walker to pay any unpaid balance
of  the $406,000 terminated on January 1, 1996.  During the  year
ended December 31, 1995 and 1994, the Company accrued $41,000 and
$125,000,  respectively, as income pursuant to the assignment  of
the   Management  Agreement  and  recorded  $2,000  and  $10,000,
respectively,  in  interest  on the unpaid  balance.   The  final
payment on this obligation was received in September 1995.

        On  March  24,  1995,  EastGroup  and  its  wholly  owned
subsidiary, EGP Managers, Inc. ("EGP Managers"), entered into  an
agreement  (the  "March  24,  1995 Agreement")  with  Walker  and
certain  entities  affiliated  with  Walker  and  its  affiliates
pursuant to which EastGroup agreed to purchase 383,775 shares  of
the Company's Common Stock from Walker and EGP Managers agreed to
purchase  Walker's interest in the Manager.  On that  same  date,
the  Board  of  Directors of the Company approved  an  additional
amendment  to  the  Management Agreement pursuant  to  which  EGP
Managers  would  assume the obligations and  duties  of  Managers
under the Management Agreement effective upon the Closing of  the
transactions  set  forth in the March 24, 1995  Agreement,  which
Closing took place on April 3, 1995. The Management Agreement, as
amended,  was renewed at its original expiration on December  31,
1995 but it will terminate on the effective date of the Company's
merger with EastGroup Properties.

       The  Manager had entered into an Administration  Agreement
with  Congress  Street Properties, Inc. (" Congress  Street"),  a
Delaware corporation and then an affiliate of EastGroup, pursuant
to  which   Congress  Street  provided day-to-day  administrative
services  to  the Company, including office space, equipment  and
personnel  incident  thereto.  The Administration  Agreement  was
terminated by EGP Managers effective March 31, 1995.

       Pursuant to the Management Agreement, the Company  has  no
employees.  All personnel required for the administration of  the
Company's  operations, including LNH's officers, were compensated
by  EastGroup. The Company bears the costs of independent agents,
such as attorneys, auditors and appraisers, retained on behalf of
the   Company;   of  expenses  connected  with  the  acquisition,
operation and disposition of its real property interests; and  of
shareholder communications, directors' fees and franchise taxes.

NOTE F - MARKETABLE EQUITY SECURITIES

    The  Company's  investment  in marketable  equity  securities
consists of the following:

                 December 31, 1995           December 31, 1994
              -------------------------  ------------------------
                                Quoted                     Quoted
             Ownership          Market  Ownership          Market
              Interest  Cost     Value  Interest   Cost     Value
             --------- ------- ------   -------- --------- ------
Liberte'
Investors      2.41%  $  169  $  675      2.41%  $  169   $  525
 ("Liberte'")        =======  ======            =======    =====

       On  January  1,  1994,  the Company adopted  Statement  of
Financial  Accounting Standards No. 115, "Accounting for  Certain
Investments  in  Debt and Equity Securities" and  classified  its
investments as securities available-for-sale.  Accordingly, as of
December 31, 1995 and 1994, investment securities are carried  at
fair  value  with the unrealized gain of $506,000  and  $356,000,
respectively,  presented as a separate component of stockholders'
equity.

      The income tax basis of the investment in marketable equity
securities at December 31, 1995 was $6,028,000.

NOTE G - SUPPLEMENTAL CASH FLOW INFORMATION

        The   following  table  provides  information   regarding
supplemental cash and noncash investing and financing activities:

                                           Year Ended December 31
                                              1995           1994
                                             (In thousands)
Loan foreclosures, net of allowance for
  losses, added to real
  estate properties...................     $ 5,971       $ 6,806 (1)
Loans made to facilitate sales of real
  estate owned........................       2,200           200
Unrealized gain on marketable equity
  securities..........................         150           356

(1) This  includes  the 22.22% minority participant's  ownership  of
$1,512,000.


NOTE H - REVERSE REPURCHASE AGREEMENT

       The  Company does not in the ordinary course  of  business
take possession of the securities which collateralize its reverse
repurchase  agreements  (assets  purchased  under  agreements  to
resell).  The Company has controls which consist of the right to
demand additional collateral or return of these invested funds at
anytime the collateral value is less than the invested funds plus
any   accrued  earnings  thereon.   The  Company  conducts  these
transactions on a short term basis with Deposit Guaranty National
Bank  with  which  it  has  a normal business  relationship.   At
December  31, 1995, the Company had $645,000 invested in  reverse
repurchase agreements which can be withdrawn at any time  without
penalty.

NOTE I - INCENTIVE COMPENSATION PLAN

       In  December 1993, the Board of Directors approved the LNH
REIT,  Inc. Incentive Compensation Plan, ("Incentive Plan") which
was  effective as of October 1, 1993.  Under the Incentive  Plan,
80,000  incentive compensation units were granted to officers  of
the  Company.   An  incentive compensation unit  is  a  right  to
receive  an  amount  equal to the dividend paid  on  a  specified
number  of  shares and is payable to the grantee in cash  as  the
corresponding payments are made to shareholders.  At December 31,
1994,  80,000 incentive compensation units were outstanding under
the  incentive plan and there were no additional units  available
for  grant.   Compensation expense related to the Incentive  Plan
for  the  years ended December 31, 1995 and 1994 was $34,000  and
$37,000, respectively.

NOTE J - NEWLY ISSUED ACCOUNTING STANDARDS

        In  March  1995,  the  FASB  issued  Statement  No.  121,
Accounting for the Impairment of Long-Lived Assets and for  Long-
Lived  Assets to Be Disposed Of, which requires impairment losses
to  be  recorded  on  long-lived assets used in  operations  when
indicators  of  impairment are present and the undiscounted  cash
flows estimated to be generated by those assets are less than the
assets' carrying value amount.  Statement 121 also addresses  the
accounting for long-lived assets that are expected to be disposed
of.  The Company will adopt Statement 121 in the first quarter of
1996  and,  based on current circumstances, does not believe  the
effect of adoption will be material.

NOTE K - FAIR VALUE OF FINANCIAL INSTRUMENTS

       The  following table represents the carrying  amounts  and
estimated  fair values of the Company's financial instruments  at
December  31,  1995.  FASB Statement No. 107,  Disclosures  about
Fair Value of Financial Instruments, defines the fair value of  a
financial instrument as the amount at which the instrument  could
be exchanged in a current transaction between willing parties.

                                                     1995
                                               Carrying    Fair
                                               Amount     Value
                                                (In thousands)
   Financial Assets
          Cash and cash equivalents            $1,016     1,016
          Investment in marketable
            securities                            675       675
          Mortgage loans                        6,860     6,899

    The  carrying amounts shown in the table are included in  the
balance  sheet  under  the  indicated captions,  net  of  related
allowance for losses.

    The  following methods and assumptions were used to  estimate
fair value of each class of financial instruments.

    Cash  and cash equivalents:  The carrying amounts approximate
fair value because of the short maturity of those instruments.

Mortgage  loans:  The fair value of performing mortgage loans  is
estimated  using discounted cash flows at current interest  rates
for  loans with similar terms and maturities.  The fair value for
nonperforming   loans  is  based  on  the  underlying   estimated
collateral value.

Investment  in  marketable securities:  The  fair  value  of  the
equity  investment  is  based  on quoted  market  prices  at  the
reporting  date for the investment.  Because this  investment  is
classified  as  a security available-for-sale, it is  carried  at
fair  value with the unrealized gain of $506,000 presented  as  a
separate component of stockholders' equity.


NOTE L - PROPOSED MERGER

       On  September 6, 1995 (amended on December 6,  1995),  LNH
REIT,  Inc.  and EastGroup Properties announced that the  Special
Committees of the Boards of each company had agreed in  principle
to   a   merger   between  LNH  and  EastGroup.   The   Company's
shareholders would receive shares of EastGroup with  a  value  of
$8.10  for  each LNH share.  The number of EastGroup shares  that
LNH  shareholders  receive would be determined  by  dividing  the
value  $8.10  by  the average trading price of  EastGroup  shares
during  the  10 trading days prior to the effective date  of  the
merger.   EastGroup presently owns 23.4% of LNH.  The  merger  is
subject  to  several conditions, including shareholder  approval,
receipt   of   a  satisfactory  fairness  opinion  by   LNH   and
registration of the EastGroup shares to be issued in  the  merger
with the Securities and Exchange Commission.  As a result of  the
transaction,  EastGroup will succeed to the  operations  and  net
assets  of  the  Company  and the Company  will  cease  to  be  a
reporting company under the Securities Exchange Act of  1934,  as
amended.


Item 8.  Changes in and Disagreements with Accountants on
Accounting and Financial Disclosure.

  None.
                            PART III

Item 9.  Directors, Executive Officers, Promoters and Control
Persons; Compliance with Section 16 (a) of the Exchange Act.

  The Registrant's definitive proxy statement which will be filed
with the Securities and Exchange Commission (the "Commission")
pursuant to Regulation 14A within 120 days of the end of
Registrant's fiscal year is incorporated herein by reference.

Item 10.  Executive Compensation.

  Registrant's definitive proxy statement which will be filed
with the Commission pursuant to Regulation 14A within 120 days of
the end of Registrant's fiscal year is incorporated herein by
reference.

Item 11.  Security Ownership of Certain Beneficial Owners and
Management.

  The Registrant's definitive proxy statement which will be filed
with the Commission pursuant to Regulation 14A within 120 days of
the end of Registrant's fiscal year is incorporated herein by
reference.

Item 12.  Certain Relationships and Related Transactions.

  The Registrant's definitive proxy statement which will be filed
with the Commission pursuant to Regulation 14A within 120 days of
the end of Registrant's fiscal year is incorporated herein by
reference.

Item 13.  Exhibits and Reports on Form 8-K.

 (a)Exhibits required by item 601 of Regulation S-B:
    (3)(a)By-Laws of the Company (incorporated by reference to
        the Company's Registration Statement on Form S-11 (No. 2-
        70446) dated December 31, 1980).
            (b)Articles of Incorporation of the Company
        (incorporated by reference to Company's Annual Report on
        Form 10-K for the period ended December 31, 1981).
            (c)Amendment to Articles of Incorporation of the
        Company (incorporated by reference to Amendment No. 4 of
        the Company's Registration Statement on Form S-11 (No. 2-
        70446) dated May 14, 1981).
    (10)Material Contracts
            (a)Conformed copy of Management Agreement among the
        Company, the Prior Manager and LFC* (the "Management
        Agreement"), (incorporated by reference to the Company's
        Registration Statement of Form S-11 (No.2-70446) dated
        December 31, 1980).
            (b)First Amendment to Management
        Agreement,*(incorporated by reference to the Company's
        Annual Report on Form 10-K for the period ended December
        31,1988).
            (c)Second Amendment to Management Agreement,*
        (incorporated by reference to the Company's Annual Report
        on Form 10-K for the period ended December 31, 1991).
             (d)Third Amendment to Management
        Agreement,*(incorporated by reference to the Company's
        Annual Report on Form 10-K for the period ended December
        31, 1994).
             (e)Administration Agreement between LNH REIT
        Managers and Congress Street Properties, Inc. dated April
        22, 1992 (incorporated by reference to the Company's
        Annual Report on Form 10-K for the period ended December
        31, 1994).
             (f)First Amendment to Administration Agreement dated
        January 1, 1995 among Parkway Congress Corporation,
        EastGroup Properties and LNH REIT Managers (incorporated
        by reference to the Company's Annual Report on Form 10-K
        for the period ended December 31, 1994).
             (g)Fourth amendment to Management Agreement (filed
        herewith).
    (21)Subsidiaries:
      LNH Florida, Inc.
      LNH K.C., Inc.
      LNH R.I., Inc.
   (25)Powers of Attorney, filed herewith.
   (27)Financial Data Schedules, filed herewith.
 (b)Reports on Form 8-K
           The Company filed Form 8-K dated December 15, 1995 for
       disclosure of the Company's foreclosure of the mortgage
       loan collateralized by the Cowesett Corners Shopping
       Center.


                           SIGNATURES

    Pursuant  to the requirements of Section 13 or 15(d)  of  the
Securities Exchange Act of 1934, the Company has duly caused this
report  to  be signed on its behalf by the undersigned, thereunto
duly authorized.



    Pursuant to the requirement of the Securities Exchange Act of
1934,  this report has been signed below by the following persons
on  behalf of the Company and in the capacities and on the  dates
indicated.


*                                       /s/ Leland R. Speed
H. C. Bailey, Jr., Trustee              Leland R. Speed,
     March 18, 1996                     Chairman of the Board
                                        (Principal Executive Officer)
                                         March 18, 1996

*                                       /s/ Ken Redford
Ted Enloe, Director                     Ken Redford, Controller
     March 18,1996                      March 18, 1996

*                                       /s/ Keith McKey
George R. Farish, Director              N. Keith McKey
     March 18, 1996                     Executive Vice President,
                                        Chief Financial Officer,
                                        and Secretary
                                        March 18, 1996

     /s/ Keith McKey
* By N. Keith McKey, Attorney in Fact