Life Time Signs Letters of Intent for $78 million in Sale-Leaseback Transactions
Proceeds to support new growth opportunities and strengthen balance sheet
CHANHASSEN, Minn., Jan. 31, 2023 /PRNewswire/ -- Life Time Group Holdings, Inc. ("Life Time" or the "Company") (NYSE: LTH) today announced that the Company has entered into non-binding letters of intent for the sale-leaseback of two properties in transactions totaling approximately $78 million with institutional real estate investors that have completed multiple sale-leaseback transactions with Life Time previously.
The parties intend for the sale and leaseback of the first property to be completed by March 31, 2023, for approximately $33 million in gross proceeds to Life Time. The sale and leaseback of the second property, which currently is under construction, is expected to be completed by September 30, 2023, for approximately $45 million.
Terms for both deals are consistent with the Company's past transactions.
Life Time Founder, Chairman, and CEO, Bahram Akradi, said "These additional planned sale-leaseback transactions will support both our future growth opportunities and commitment to further strengthen the Company's balance sheet. We are fortunate to have tremendous relationships with our partners and grateful for their ongoing interest in our real estate portfolio."
About Life Time
Life Time (NYSE: LTH) empowers people to live healthy, happy lives through its portfolio of more than 160 athletic country clubs across the United States and Canada. The Company's healthy way of life communities and ecosystem address all aspects of healthy living, healthy aging and healthy entertainment for people 90 days to 90+ years old. Supported by a team of more than 30,000 dedicated professionals, Life Time is committed to providing the best programs and experiences through its clubs, iconic athletic events and comprehensive digital platform.
Certain statements contained in this press release constitute forward-looking statements, including with respect to the expected execution of definitive agreements for the sale-leaseback transactions and the successful closing of these transactions (including the pricing and timing thereof) as well as Life Time's expectations, guidance or future operating results, and other statements identified by words such as "estimates," "expects," "projects," "plans," "intends," "outlook" and similar expressions. Management has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While they believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond management's control. These statements involve risks and uncertainties that may cause Life Time's actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements, including with respect to the ability to execute definitive agreements, satisfy closing conditions and close the proposed sale-leasebacks on a timely basis or at all, the possibility that modifications to the pricing and terms of the transactions may be required, business disruption and other risk factors relating to the business or industry as detailed from time to time in the Company's reports filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and, except as required by law, Life Time assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.
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SOURCE Life Time Group Holdings, Inc.