News
Proceeds to be used to strengthen balance sheet, support new growth opportunities
CHANHASSEN, Minn., Sept. 12, 2022 /PRNewswire/ -- Life Time Group Holdings, Inc. ("Life Time" or the "Company") (NYSE: LTH) today announced that it has now closed on the previously announced agreement to sale-leaseback an additional five properties, bringing its year-to-date sale-leaseback transactions to nine properties totaling $375 million in gross proceeds.
The sale and leaseback of the additional five properties was completed on September 9, 2022, for $200 million in gross proceeds to Life Time. The Company expects to use the net proceeds both to pay down debt and maintain cash on the balance sheet to fund future growth. Additional details were not disclosed.
The Company previously announced details regarding the sale and leaseback of the first four properties on May 16, 2022:
- The sale and leaseback of two properties closed on March 25, 2022, for approximately $80 million in gross proceeds to Life Time.
- The sale and leaseback of two properties closed on May 13, 2022, for approximately $95 million in gross proceeds.
Finally, as announced with its second quarter fiscal 2022 results on August 10, 2022, the Company also is 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.
Life Time (NYSE: LTH) empowers people to live healthy, happy lives through its portfolio of nearly 160 athletic country clubs across the United States and Canada. The Company's healthy way of life communities address all aspects of healthy living, healthy aging and healthy entertainment for those 90 days to 90+ years with integrity and respect for everyone. With a team of more than 30,000, Life Time is committed to providing the best programs and experiences through its athletic country clubs, iconic athletic events and via a complementary and comprehensive digital platform.
Certain statements contained in this press release constitute "forward-looking statements" within the meaning of federal securities regulations, including with respect to the execution and closure of future sale-leaseback transactions (including the amount, pricing, timing and use of proceeds thereof) as well as Life Time's expectations, guidance or future operating results. These statements are based on the beliefs and assumptions of the Company's management. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning the Company's possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. Any statements or information that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking. Several factors could cause actual results to differ materially from those forward-looking statements included in this press release, including the factors discussed under the caption "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2021 filed with the Securities and Exchange Commission (the "SEC") on March 10, 2022 (File No. 001-40887), as such factors may be updated from time to time in the Company's other filings with the SEC, which are accessible on the SEC's website at www.sec.gov. These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any forward-looking statement that the Company makes in this press release speaks only as of the date of such statement. Except as required by law, the Company does not have any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Life Time Group Holdings, Inc.
