Candace Cordelia is a Pennsylvania-based journalist and on-camera broadcaster/host, with…
Life Time expects to use the proceeds to pay down debt and to fund growth
Life Time seems well on the path to further growth, not only with the openings of impressive new physical locations, but also the sale-leaseback transactions. On Sept. 12, the health club chain announced closing on agreement to sale-leaseback five more properties. This $200 million business deal brings Life Time’s sale-leaseback proceeds to $375 million in total so far.
Life Time completed the sale-leaseback transactions of their first four properties earlier this year. Two properties closed in March for around $80 million, while two others closed in May for around $95 million.
The company’s second quarter fiscal year 2022 report shows a healthy increase in revenue from $323.2 million at the end of the prior year’s Q2 to $461.3 million (a 42.7 percent jump). In regards to center membership tallies compared to 2021, Life Time saw a total of 724,778 by June 30, 2022. On that same date the previous year, 657,737 memberships were calculated.
Thanks to an impressive escalation of center memberships and recent sale-leasebacks, total revenue increased from $572.5 million in the first six months of 2021 to $853.5 million during 2022’s. It’s no wonder Life Time is expanding. In August, Life Time CEO, Founder and Chairman Bahram Akradi confirmed the substantial growth of his business and plans of its future prosperity in a press release statement.
“We are happy to report that Life Time is growing back steadily,” he began. “During the quarter, we made substantial progress on our strategic priorities. We delivered on our financial guidance, while continuing to make strategic investments in broadening and elevating the programs and experiences we provide. We are seeing strong member engagement in our programming and will remain focused on driving these initiatives through the remainder of the year. Our new athletic country club pipeline remains strong with 12 planned openings this year and 11 or more in 2023.”
Akradi went on to add in his statement of plans to secure “additional sale-leaseback transactions of up to $300 million in gross proceeds” towards the end of 2022.
Candace Cordelia is a Pennsylvania-based journalist and on-camera broadcaster/host, with a reporting background in wrestling, entertainment, and lifestyle. Her reporting work has been featured on websites and in publications such as Bustle, Pro Wrestling Illustrated, New York Daily News, am New York, ABC News, Yahoo!, Good Morning America, Madame Noire, Sister 2 Sister, etonline.com, Diva Dirt and The Everyday Fan. Her favorite workout influencers include Chloe Ting, Cassey Ho, Pamela Reif and Mary Braun. She still can’t stand burpees and Rebbl Dark Chocolate Immunity Elixir is one of her favorite post-workout protein sips. You can follow Candace on Twitter @CandaceCordelia and on Instagram @thatgirlcandace16.