<PAGE>
--------------------------------------------
OMB APPROVAL
--------------------------------------------
OMB Number: 3235-0145
Expires: October 31, 1997
Estimated average burden
hours per response........ 14.90
--------------------------------------------
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. 2) *
LNH REIT, INC.
- --------------------------------------------------------------------------------
(Name of Issuer)
Common Stock, $.50 Par Value
- --------------------------------------------------------------------------------
(Title of Class of Securities)
502115-10-8
- --------------------------------------------------------------------------------
(CUSIP Number)
Larry Schoenbrun
Gardere & Wynne, L.L.P.
1601 Elm Street, Suite 3000, Dallas, Texas 75201-4761, (214) 999-3000
- --------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized to Receive Notices and
Communications)
FEBRUARY 26, 1996
- --------------------------------------------------------------------------------
(DATE OF EVENT WHICH REQUIRES FILING OF THIS STATEMENT)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(b)(3) or (4), check the following box [ ].
Check the following box if a fee is being paid with the statement [ ]. (A fee is
not required only if the reporting person:(1) has a previous statement on file
reporting beneficial ownership of more than five percent of the class of
securities described in Item 1; and (2) has filed no amendment subsequent
thereto reporting beneficial ownership of five percent or less of such class.)
(See Rule 13d-7.)
NOTE: Six copies of this statement, including all exhibits, should be filed
with the Commission. See Rule 13d-1(a) for other parties to whom copies are to
be sent.
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
<PAGE>
SCHEDULE 13D
- ----------------------- ---------------------
CUSIP NO. 502115-10-8 PAGE 2 OF 12 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Payne & Madole
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [_]
(b) [X]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
WC
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e)
5 [_]
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Texas
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF
0
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY 4,000
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING
0
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
4,000
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
4,000
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12 [X]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
0.2%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
PN
- ------------------------------------------------------------------------------
2 of 12
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
- ----------------------- ---------------------
CUSIP NO. 502115-10-8 PAGE 3 OF 12 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Marshall B. Payne (###-##-####)
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [_]
(b) [X]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
PF; AF
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e)
5 [_]
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
USA
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF
7,700
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY 4,000
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING
7,700
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
4,000
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
11,700
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12 [X]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
0.5%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
IN
- ------------------------------------------------------------------------------
3 of 12
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
- ----------------------- ---------------------
CUSIP NO. 502115-10-8 PAGE 4 OF 12 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Edward W. Rose III (###-##-####)
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [_]
(b) [X]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
AF
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e)
5 [_]
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
USA
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF
76,000
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY 0
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING
76,000
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
0
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
76,000
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12 [X]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
3.5%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
IN
- ------------------------------------------------------------------------------
4 of 12
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
Payne & Madole, a Texas general partnership, Marshall B. Payne and Edward
W. Rose III (the "Reporting Persons") hereby supplement and amend their
Statement on Schedule 13D originally filed on June 10, 1994, as previously
amended on December 19, 1994 (the "Schedule 13D"), with respect to their
beneficial ownership of shares of Common Stock, $0.50 par value, of LNH REIT,
Inc. This amendment reflects (i) the deletion of Cardinal Portfolios Company,
Cardinal Investment Company, Inc. dba Cardinal Trading, Cardinal Partners, Amy
Kirwan Langston, Gary Langston, R. Todd Rankin, Rankin Investment Corporation,
Kathleen E. Wright and Robert E. Wright as reporting persons under the Schedule
13D, (ii) the sole voting and dispositive power of Edward W. Rose III to vote
and dispose of shares for which Mr. Rose and Cardinal Portfolios Company were
previously reported to have shared voting and dispositive power, (iii) certain
dispositions by the Reporting Persons and (iv) that each of the Reporting
Persons, and the Reporting Persons as a group, ceased to be the beneficial
owners of more than five percent of the shares of common stock of LNH REIT, Inc.
Item 1. Security and Issuer.
-------------------
This Schedule 13D relates to the Common Stock, $0.50 par value (the "LNH
REIT Common Stock"), of LNH REIT, Inc., a Maryland corporation ("LNH REIT"),
which has its principal executive offices located at 300 One Jackson Place, 188
East Capitol Street, P.O. Box 22728, Jackson, Mississippi 39225-2728.
Item 2. Identity and Background.
-----------------------
(a), (b) and (c): The following sets forth the information required by
Items 2(a), (b) and (c):
1. Payne & Madole is a Texas general partnership, whose partners are
Marshall B. Payne, Robert B. Payne, Jr. and Susan Payne Madole. The
principal business of Payne & Madole is investments, and the address of
its principal business and the address of its principal office is 500
Crescent Court, Suite 250, Dallas, Texas 75201 (the "Cardinal
Address"). Payne & Madole was formed by an oral agreement between its
partners and there is no written partnership agreement. Marshall B.
Payne has sole voting and dispositive power with respect to the shares
held by Payne & Madole, and Robert B. Payne, Jr. and Susan Payne Madole
do not have any voting or dispositive power with respect to the shares
held by Payne & Madole. Robert B. Payne, Jr. is an attorney with Payne
& Vendig, a law firm, whose principal business address is 3700
Renaissance Tower, Dallas, Texas 75270, which is also Mr. Payne's
business address. Susan Payne Madole is a homemaker, whose residence
address is 4113 Windsor Parkway, Dallas, Texas 75205.
Page 5 of 12 Pages
<PAGE>
2. Marshall B. Payne is the Vice President of Cardinal Investment Company,
Inc., a company principally engaged in the investment business, and his
business address is the Cardinal Address.
3. Edward W. Rose III is the President of Cardinal Investment Company,
Inc., and his business address is the Cardinal Address.
(d) None of the Reporting Persons nor any of the partners of Payne & Madole
has, during the last five years, been convicted in a criminal proceeding
(excluding traffic violations or similar misdemeanors).
(e) None of the Reporting Persons nor any of the partners of Payne & Madole
has, during the last five years, been a party to a civil proceeding of a
judicial or administrative body of competent jurisdiction and as a result of
such proceeding was or is subject to a judgment, decree or final order enjoining
future violations of, or prohibiting or mandating activities subject to, federal
or state securities laws or finding any violation with respect to such laws.
(f) Marshall B. Payne, Edward W. Rose III and each of the partners of Payne
& Madole is a citizen of the United States.
Item 3. Source and Amount of Funds or Other Consideration.
-------------------------------------------------
The following table sets forth the aggregate consideration paid for the LNH
REIT Common Stock by each Reporting Person. The table lists the actual owners
of the shares.
<TABLE>
<CAPTION>
Number of Aggregate
--------- -------------
Shares Consideration
Name --------- -------------
- --------------------
<S> <C> <C>
Payne & Madole 4,000 $ 22,180.40
Marshall B. Payne 7,700 37,330.90
Edward W. Rose III 76,000 478,182.61
------ -----------
87,700 $537,693.91
</TABLE>
The funds used to acquire the LNH REIT Common Stock came from available
working capital and/or available cash on hand of each of the Reporting Persons.
Item 4. Purpose of Transaction.
----------------------
Each of the persons reporting on this Statement has acquired their
respective shares of LNH REIT Common Stock to hold primarily for investment.
Depending upon market conditions and other factors, each person reporting on
this Statement may, from time to
Page 6 of 12 Pages
<PAGE>
time, either jointly or individually, acquire additional shares of LNH REIT
Common Stock or dispose of all or any part of their respective holdings of LNH
REIT Common Stock.
No person reporting on this Statement has any present plans to participate
in the management of LNH REIT; to cause it to engage in any extraordinary
transactions; to sell or transfer any of its material assets or the assets of
any of its subsidiaries; to effect any change of its management or its
directors, business, corporate structure, capitalization, dividend policy,
articles of incorporation, or bylaws; or to delist or terminate the registration
of any securities of LNH REIT; but each reserves the right to propose or
undertake or participate in any of the foregoing actions in the future.
Item 5. Interest in Securities of the Issuer.
------------------------------------
(a) and (b): The following table sets forth the information required by Item
5(a) and (b):
<TABLE>
<CAPTION>
Dispo-
Number of Voting sitive %
Name Shares Power Power Ownership
---- ------------ ------ ------ -----------
<S> <C> <C> <C> <C>
Payne & Madole 4,000 shared shared 0.2%
Marshall B. Payne 7,700 sole sole 0.3%
4,000(1) shared shared 0.2%
Edward W. Rose III 76,000 sole sole 3.5%
</TABLE>
- -------------------
(1) Includes 4,000 shares held by Payne & Madole, which may be deemed to be
beneficially owned by Marshall B. Payne.
The aggregate number of shares of LNH REIT Common Stock held by the
Reporting Persons is 87,700. Each of the Reporting Persons declares that the
filing of this Statement shall not be construed as an admission that he is, for
purposes of Section 13(d) or 13(g) of the Securities Act of 1933, as amended,
the beneficial owner of all of the securities covered by this Statement. Each
of the Reporting Persons disclaims beneficial ownership of all of the shares of
LNH REIT Common Stock covered by this Schedule 13D except for the shares
indicated as being beneficially held by him in the table above.
Page 7 of 12 Pages
<PAGE>
(c) The following are the transactions in LNH REIT Common Stock effected by
or for the Reporting Persons within the last 60 days prior to the date of this
amended and restated Schedule 13D:
<TABLE>
<CAPTION>
Number Price
of of
Shares Shares*
Date Seller ------ -------
- ---- -------
<S> <C> <C> <C>
01/23/96 Edward W. Rose III 400 $7.875
01/24/96 Edward W. Rose III 200 7.875
02/26/96 Edward W. Rose III 14,700 7.75
02/26/96 Marshall B. Payne 14,000 7.75
02/27/96 Edward W. Rose III 800 7.75
</TABLE>
* Excludes commission paid on these sales.
All of the above-described transactions were effected by open market sales.
(d) Not applicable.
(e) On February 26, 1996, each of the Reporting Persons, and the Reporting
Persons as a group, ceased to be the beneficial owners of more than five percent
of the LNH Common Stock, and, as such, will no longer be required to report
beneficial ownership of shares of LNH Common Stock on Schedule 13D.
On January 22, 1996, Rankin Investment Corp. sold all shares of LNH Common
Stock owned by it and, as such, Rankin Investment Corp. and Todd R. Rankin are
not included in this Schedule 13D.
On October 12, 1995, Cardinal Investment Company, Inc. dba Cardinal
Trading, Cardinal Partners and Robert E. and Kathleen E. Wright sold all shares
of LNH Common Stock owned by them and, as such, they are included in this
Schedule 13D.
As of September 1, 1995, Amy Kirwan Langston and Gary Langston have had no
agreement to act together with the Reporting Persons for purposes of acquiring,
holding, voting or disposing of the LNH REIT Common Stock. As such, they are
not included in this Schedule 13D.
Cardinal Portfolios Company is a sole proprietorship owned by Edward W.
Rose III. Mr. Rose has placed all shares previously reported by Cardinal
Portfolios Corporation into his own name. Therefore, Mr. Rose is now reported
to have sole voting and dispositive power of shares of LNH Common Stock for
which Cardinal
Page 8 of 12 Pages
<PAGE>
Portfolios Company and Mr. Rose were previously reported to have shared voting
and dispositive power.
Item 6. Contracts, Arrangements, Understandings or Relationships With Respect
---------------------------------------------------------------------
to Securities of the Issuer.
---------------------------
Payne & Madole has agreed to pay Cardinal Portfolios Company 15% of the
profits it realizes from the purchase and sale of the LNH REIT Common Stock.
Except as hereinbefore described and except for past or future communications
and discussions among themselves regarding their investment in shares of LNH
REIT Common Stock, there are no current contracts, arrangements, understandings
or legal relationships among the persons reporting on this Statement with
respect to the acquiring, holding, voting or disposition of LNH REIT Common
Stock. Pursuant to the oral partnership agreement of Payne & Madole, Marshall
B. Payne has the sole power to vote and dispose of the shares of LNH REIT held
by Payne & Madole.
Item 7. Material to be Filed as Exhibits.
--------------------------------
Exhibit A - Agreement Regarding Filing of Schedule 13D among the parties
to this Statement (previously filed)
Page 9 of 12 Pages
<PAGE>
Signature
- ---------
After reasonable inquiry and to the best of the undersigned's knowledge and
belief, each of the undersigned certifies that the information set forth in this
Statement is true, complete and correct.
CARDINAL PORTFOLIOS COMPANY
By: *
---------------------------------------
CARDINAL PARTNERS
By: *
---------------------------------------
*
---------------------------------------
Edward W. Rose III
*
---------------------------------------
Debbie Crady
*
---------------------------------------
Amy Kirwan Langston
*
---------------------------------------
Gary Langston
PAYNE & MADOLE
By: *
------------------------------------
*
---------------------------------------
Marshall B. Payne
*
---------------------------------------
R. Todd Rankin
Page 10 of 12 Pages
<PAGE>
RANKIN INVESTMENT CORPORATION
By: *
-------------------------------------
*
----------------------------------------
Kathleen E. Wright
*
----------------------------------------
Robert E. Wright
February 29, 1996 *By: /s/ Debbie Crady
------------------------------------
Debbie Crady, Attorney-in-fact
(pursuant to Power of Attorney filed
on signature page of Statement as
originally filed)
Page 11 of 12 Pages
<PAGE>
EXHIBIT INDEX
-------------
Sequentially
Numbered
Exhibit Document Page
- ------- -------- ------------
Exhibit A - Agreement Regarding Filing of previously filed
Schedule 13D among the parties
to this Statement
Page 12 of 12 Pages
