Life Time Completes Latest Sale-Leaseback Deal for $200 Million

Life Time Group Holdings Inc., Chanhassen, Minnesota, has closed on a sale-leaseback deal for five of its properties for $200 million, the company announced on Sept. 12.

The company plans to use the money from the Sept. 9 deal to pay down debt and maintain cash on the balance sheet to fund future growth. Additional details, such as the locations of the properties, were not disclosed.

Life Time has 160 athletic country clubs in 29 states and in one Canadian province. Most of its clubs average 100,000 square feet, according to the company.

So far this year, Life Time has completed sale-leasebacks on nine properties, totaling $375 million in gross proceeds, the company said.

Traditionally, Life Time owned its real estate, but five months after it went public in October 2021, it completed a sale-leaseback deal for two properties for approximately $80 million in gross proceeds. In May, it completed a deal on two more properties for $95 million in gross proceeds.

Life Time executives are evaluating opportunities to monetize up to an additional $300 million in real estate prior to end of the year. These transactions would bring the total gross proceeds for sale-leasebacks in 2022 to approximately $675 million, according to the announcement.

Life Time previously noted in its second quarter 2022 financial report that it was pursuing these latest sale-leaseback deals and was evaluating the possibility of more. For the second quarter, Life Time reported $451.3 million in revenue, a 42.7 percent increase from second quarter 2021.

This year, Life Time celebrates its 30th anniversary. Earlier this month, it opened its seventh club in New York City, and it plans to open another four in the city soon. In August, it also expanded in Florida with the opening of its fourth location there.