Life Time Fitness Credit Rating & NNN Cap Rate Analysis (2026)

Life Time Fitness Business Overview & NNN Investment Profile

Life Time Group Holdings is the operator of Life Time: a luxury athletic lifestyle club brand offering premium gym facilities, spa services, childcare, cafes, and sports programming under one roof. Operating 195 athletic country clubs across the U.S. and Canada as of July 30, 2026, Life Time targets the premium wellness consumer; its average revenue per center membership was $3,531 in 2025 (FY2025 Form 10‑K). The Chanhassen, Minnesota-based company went public on the NYSE in October 2021 following private equity backing from Leonard Green & Partners and TPG Capital.

Life Time Fitness Credit Rating Analysis

Life Time’s BB ratings are not investment grade, and its clubs, about 97,000 square feet on average (FY2025 Form 10‑K), are capital intensive to build. Life Time reported net cash provided by operating activities of $870.5 million in 2025, up from $575.1 million in 2024 (FY2025 Form 10‑K), and its net debt leverage ratio fell to 1.4 times as of June 30, 2026, from 1.8 times a year earlier (second quarter 2026 results release).

Source: S&P Global Ratings BB, as of June 25, 2026; Fitch Ratings BB, as of April 20, 2026. Ratings checked October 8, 2026. The S&P rating and date are as reported by Life Time Group Holdings, Inc. in its second quarter 2026 results release (Form 8-K, Exhibit 99.1), not taken from the S&P rating action itself; we have not confirmed which Life Time entity the S&P action names.

The COVID-19 pandemic hurt Life Time: it closed all of its centers in March 2020 under government orders, and its FY2025 Form 10‑K says the business took time to recover. Revenue grew in each year after 2020, and 2025 revenue of $2.995 billion was the highest in its history (FY2025 Form 10‑K).

Life Time NNN Lease Structure

Life Time lease terms vary: excluding renewal options, its leased centers expire from March 2027 through December 2054, and many of its leases have escalating rent provisions (FY2025 Form 10‑K), so confirm the term in the lease. Its clubs average about 97,000 square feet and are in affluent suburban and urban locations. The specialized fitness club format (with pools, courts, spas, childcare centers, and restaurants) creates significant re-tenanting complexity if Life Time were to vacate a location.

Life Time NNN Cap Rate & Pricing Trends

Live asking cap rates for Life Time Fitness and comparable tenants:

Active listings InvestmentGrade.com tracks with an asking cap rate (stated in the listing, or computed from its stated income and price when no rate is stated), listings last observed October 12, 2026. Asking cap rates are not closed-sale cap rates. The middle half is the range from the 25th to the 75th percentile of listings. The 10-year Treasury yield is 5.24% as of October 1, 2026 (FRED series DGS10). Ratings are the agency ratings in our ratings database for the entity shown, which may be a parent company; the rating type (for example issuer, senior unsecured debt, long-term debt or revenue bond ratings) varies by company and is shown on each tenant page. A rating applies to a lease only if the rated entity signs or guarantees it, so confirm the tenant and any guarantor in the lease. n/a means no verified rating is on file. Not shown because fewer than 3 active listings with a published cap rate were observed: Life Time Fitness, BJ's Wholesale Club.

We do not currently track enough Life Time listings to report a median asking cap rate, so the table may show only comparable tenants. Credit and the specialized large-format building can both affect pricing; compare an offering with recent sales of similar large-format properties, and note that the comparable tenants in the table differ in format, credit and lease obligor.

Life Time NNN Investment: Pros & Cons

Comparable NNN Tenants

“Not rated” or “no verified rating” means our ratings database holds no verified agency issuer rating for that company; it is not a finding that no agency rates it.