Shares of gym operator Life Time Fitness Inc. rose more than 10 percent Monday after the gym operator announced it is considering converting its real estate assets into an investment trust.
The company said in a statement that its board of directors thinks converting to a real estate investment trust could benefit shareholders, given the company's significant real estate holdings.
Continue Reading Below
Life Time operates 112 health clubs under the Life Time Fitness and Life Time Athletic brands in the U.S. and Canada.
Real estate investment trusts don't have to pay corporate income taxes on profits as long as the trusts give at least 90 percent of profits to shareholders.
Company shares rose $4.02, or 9.6 percent, to $45.58 in afternoon trading.