#United States #Chanhassen #Sale-Leaseback #Life Time #S&P Rating

Life Time's Financial Milestone

Life Time Group Holdings, Inc. has recently made headlines with its announcement of a significant sale-leaseback transaction valued at approximately $150 million. This move is seen as a strategic financial maneuver aimed at enhancing the company’s operational capabilities and overall market performance.

On June 23, 2025, the fitness and wellness giant confirmed that it had concluded the sale-leaseback of three properties, with specifics regarding the terms closely aligning with previous transactions. However, the company has opted not to disclose further details at this time. Such transactions allow Life Time to unlock capital from its properties while still retaining operational control through lease agreements.

In conjunction with this deal, an important update came just days earlier, on June 18, when S&P Global Ratings upgraded Life Time's issuer credit rating from 'B+' to 'BB-'. According to S&P, this upgrade reflects Life Time’s robust operating performance, fueled by increased memberships, enhanced dues structure, improved member engagement, and a burgeoning demand for services offered within the facilities. Additionally, the company has demonstrated reduced leverage and a shift in financial sponsorship, further solidifying its financial standing.

The implications of this credit rating upgrade are profound. Following the upgrade, effective June 19, Life Time's credit facility margin was reduced by 25 basis points, which translates into potential savings in interest payments. This aligns with the company’s efforts to fortify its capital efficiency strategy while maintaining a healthy financial profile.

Erik Weaver, the Executive Vice President and Chief Financial Officer, expressed satisfaction with the completion of the sale-leaseback transaction. He highlighted expectations of executing an additional $100 million in sales of leases throughout the remainder of 2025. Weaver emphasized that this, combined with the lower cost of debt resulting from the recent rating upgrade, further positions Life Time to advance its expansion endeavors while ensuring sound financial health.

Life Time is acclaimed for empowering individuals to lead healthier lives through its extensive network of over 180 athletic country clubs spread across the United States and Canada. Additionally, the company boasts a comprehensive Life Time app and hosts nearly 30 iconic athletic events nationwide. Catering to a diverse clientele, Life Time engages individuals aged from infancy to their seniors with its variety of healthy living, aging, and lifestyle programs.

The company has also gained recognition as a Great Place to Work®, affirming its commitment to fostering a positive workplace culture for its team members, which exceed 43,000 in total. This recognition adds to the company’s appeal as not only a leading fitness brand but also as an employer of choice within the wellness industry.

As Life Time strategically navigates its financial landscape through initiatives like the sale-leaseback transactions and enhances its credit rating, industry stakeholders anxiously await how this will influence its future growth and stability in the competitive health and wellness market. With these developments, Life Time is undoubtedly positioning itself as a formidable player capable of adapting to the ever-evolving demands of its clientele while reinforcing its commitment to operational excellence and member satisfaction.