NEW YORK CITY—Gramercy Property Trust has closed on a 20-year sale-leaseback transaction with Life Time Fitness to acquire a portfolio of ten, large-format, high-end fitness centers for an aggregate purchase price of approximately $300 million. The portfolio totals approximately 1.3 million square feet located in major markets across the US. For the combined portfolio, Year 1 net operating income is anticipated to be approximately $19.5 million (6.5% initial cash cap rate; 7.5% annualized straight-line cap rate).

The company also announced that it is updating its previously announced outlook for 2015 to take into account stronger than expected acquisition volume to date and the $271.3 million equity offering completed on April 14th. No additional follow-on equity offerings during 2015 are assumed or required in connection with the updated outlook.

In addition, the company realized Core FFO of more than $1.00 per share for the second half of 2015 (Q3 and Q4 combined); made acquisitions of approximately $250 million for the remainder of the year and full year acquisitions of approximately $1.2 billion; had asset dispositions of approximately $150 million through the balance of 2015 and achieved Q2 Core FFO of $0.43 per share to $0.45 per share.

The company also announced that its Board of Directors declared a second quarter 2015 dividend of $0.22 per common share, an increase of 10% over the previous quarterly dividend. The dividend is payable on July 15, 2015 to holders of the Company's common stock and to unitholders of GPT Property Trust LP of record as of the close of business on June 30, 2015.

The Board of Directors also declared a dividend on the 7.125% Series B Cumulative Redeemable Preferred Stock for the quarter ending June 30, 2015 in the amount of $0.44531 per share, payable on June 30, 2015 to preferred stockholders of record as of the close of business on June 19, 2015.

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Rayna Katz

Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.