Omega Healthcare is close to completing its $600 million acquisition of smaller fellow nursing facility landlord MedEquities Realty Trust, officials said Wednesday.

The deal, first announced in January, would add 34 facilities in seven states to Omega’s portfolio. Leaders with the Hunt Valley, MD, real estate investment trust said they hope to close the deal by May 15.

CEO C. Taylor Pickett told investors Wednesday that he looks forward to completing the transaction and putting dealings with troubled tenant Orianna in the rearview. It plans to return to a more “normal period of time” for the balance of 2019.

“The skilled nursing facility industry remains challenged, but we believe there is some near-term upside and continue to be optimistic over the long-term, notwithstanding the current challenges facing Daybreak and certain smaller operators,” he told investors.

Omega revealed during its previous earnings call that tenant Daybreak Venture had fallen behind on its rent payments by $4 million, with the landlord agreeing to defer millions in lease costs. Omega officials said that Daybreak continues to honor that agreement and is beginning to see improvements in its patient quality mix in the first few months of 2019. They continue to work closely with the Texas nursing facility operator, but have not yet decided whether further rent deferrals are required.

Leaders with the REIT noted several reasons for optimism in the skilled care space, including the 2.5% market-basket update and upcoming Patient-Driven Payment Model. Pickett said that they’ve gone through their entire portfolio, operator by operator, and found that every one is expecting positive margin impacts from PDPM.