Omega Healthcare has completed a $735 million acquisition of 60 facilities throughout the United States. The deal was closed last week, company executives said during a third-quarter earnings call Wednesday morning.

The acquisition consists of 58 skilled nursing facilities and two assisted living facilities located in Florida, North Carolina, Mississippi, Louisiana, Idaho, Kentucky, Missouri and Montana. They have a combined 6,950 beds. 

Executives also noted the company and its skilled nursing operators remain optimistic about the newly-implemented Patient Driven Payment Model. 

“While it is too early to make any definitive conclusions, the initial feedback from our operators is positive. When combined with the recent 2.4% increase in Medicare reimbursement and the promising demographic tailwinds, we believe our operators are well-positioned to weather the continued labor cost pressures and generate solid financial performance over time,” CEO Taylor Pickett said. 

The company also reported reported net income of $142.9 million, or $0.63 per common share, and operating revenues of $233.2 million for the quarter. For the same period in 2018, Omega reported a net income of $59.1 million, $0.28 per common share and operating revenues of $221.9 million. 

It attributed the increase in net income to gains from sold assets, new investments and joint ventures, and a decrease in impairments on direct financing leases and real estate properties. 

Omega also has agreed to purchase a 49% interest in a UK senior housing joint venture for $90 million. The deal is with Healthpeak Properties in Irvine, CA. Healthpeak (formerly HCP) also has announced multi-million dollar deals with Brookdale Senior Living and Capital Senior Living.

Additionally, the company received $750,000 in rent payments from Texas operator Daybreak Venture during the quarter, which was below its expectations. Executives hinted at replacing the operator in some areas. 

“Although the ultimate structure of this resolution is still being finalized, we believe the resulting rents will be at the mid- to high-end of the previously indicated range of $3 (million) to $5 million dollars per quarter. In the meantime, we continue to support Daybreak’s commitment to providing excellent quality of care to its residents,” Pickett added.