T-Mobile is the newest investment grade entrant in the IG 180 database, having crossed the BBB-/Baa3 threshold after the April 2020 Sprint merger and continuing to improve to BBB / Baa2 as integration synergies materialized. Its bonds yield approximately 5.15% while NNN retail store properties trade at 5.25% to 6.50% cap rates, producing a nominal spread of 10 to 135 basis points. For investors who tracked T-Mobile’s credit journey from sub-investment-grade through rising star status, the NNN spread represents an opportunity to capture yield on a credit that is still being repriced upward by both the bond and real estate markets.
For the full 21-company comparison, see the Bond-to-NNN Spread Anchor Page. For the complete T-Mobile tenant analysis, see the T-Mobile Credit Rating and NNN Cap Rate page.
T-Mobile Credit Profile
| Metric | Details |
|---|---|
| S&P Rating / Outlook | BBB / Stable |
| Moody’s Rating / Outlook | Baa2 / Stable |
| Investment Grade Status | Investment Grade (upgraded from sub-IG post-Sprint merger) |
| Ticker | NASDAQ: TMUS |
| US Retail Store Count | ~7,000+ (corporate + authorized dealer) |
| Annual Revenue | ~$80 billion (FY2025) |
| Annual Free Cash Flow | ~$17 billion |
The Spread: T-Mobile Bonds vs. NNN
| Metric | TMUS Corporate Bond | TMUS NNN Property |
|---|---|---|
| Yield / Cap Rate | ~5.15% (5-10yr senior unsecured) | 5.25% to 6.50% |
| Nominal Spread vs. Bond | Baseline | +10 to +135 bps |
| Minimum Investment | ~$1,000 (via broker) | ~$800,000 to $2,500,000 |
| Liquidity | Sells in seconds | 60 to 90 day sale cycle |
| Income Taxation | Ordinary income (up to ~45.8%) | Sheltered by depreciation |
| 1031 Exchange Eligible | No | Yes |
| Depreciation Deduction | None | 39-year straight line + cost segregation |
| Typical NNN Lease | N/A (debt instrument) | 10 to 15 year NNN, corporate guarantee |
| Building Size | N/A | 1,500 to 3,500 SF (inline or small freestanding) |
Bond yield is approximate, derived from T-Mobile’s BBB/Baa2 rating-tier position relative to the ICE BofA BBB US Corporate Index (~5.29% as of March 19, 2026, per FRED). NNN cap rates from InvestmentGrade.com IG 180 database. This is not investment advice.
The Rising Star Story: From BB to BBB in Five Years
T-Mobile’s credit trajectory is one of the cleanest rising star stories in recent corporate history. Before the Sprint merger closed in April 2020, T-Mobile carried sub-investment-grade ratings. The merger initially added significant leverage (Sprint’s debt plus acquisition financing), which kept ratings below the IG threshold. However, T-Mobile’s aggressive realization of merger synergies ($7.5+ billion annually), accelerating subscriber growth (surpassing both AT&T and Verizon in postpaid net additions), and disciplined debt reduction systematically improved the credit profile. The result: a multi-notch upgrade to BBB / Baa2, placing T-Mobile solidly in the middle of the investment grade spectrum.
For NNN investors, this rising star dynamic creates a specific opportunity. Properties leased to T-Mobile (or former Sprint locations now carrying the T-Mobile brand) that were acquired when the credit was sub-investment-grade are now backed by a BBB / Baa2 guarantor generating $17 billion in annual free cash flow. Investors who bought T-Mobile/Sprint NNN at 7.0% to 8.0% cap rates during the sub-IG period have seen meaningful cap rate compression as the market repriced the improved credit. The current 5.25% to 6.50% range reflects the new reality, but some properties with shorter remaining terms or secondary locations still price wider, offering a residual spread opportunity for investors who believe the credit trajectory remains positive.
Corporate Store vs. Authorized Dealer: The Guarantor Distinction
T-Mobile operates its 7,000+ US retail locations through two models: corporate-owned stores and authorized dealer stores. The NNN investor must distinguish between these because the guarantor is fundamentally different. A corporate T-Mobile store carries the full TMUS parent guarantee (BBB / Baa2, $80 billion revenue, $17 billion FCF). An authorized dealer store is guaranteed by the local dealer operator, who may be a small regional business with limited financial transparency. The spread analysis on this page applies only to corporate-guaranteed T-Mobile locations.
Former Sprint locations that have been rebranded to T-Mobile carry the T-Mobile corporate guarantee if the lease has been assigned or guaranteed by T-Mobile US, Inc. Investors should verify the guarantor entity in the lease document. A Sprint legacy lease guaranteed by Sprint Communications Company LP (a T-Mobile subsidiary) provides functionally equivalent credit backing, but the lease language and guarantor entity should be confirmed during due diligence.
Telecom NNN: T-Mobile vs. Verizon vs. AT&T
| Tenant | S&P / Moody’s | Bond Yield | NNN Cap Rate | Spread (bps) |
|---|---|---|---|---|
| Verizon | BBB+ / Baa1 | ~5.05% | 5.00% to 6.25% | (5) to 120 |
| T-Mobile | BBB / Baa2 | ~5.15% | 5.25% to 6.50% | 10 to 135 |
| AT&T | BBB / Baa2 | ~5.35% | 5.25% to 6.50% | (10) to 115 |
All three major wireless carriers produce similar NNN cap rates because their retail store formats are nearly identical (1,500 to 3,500 SF inline or small freestanding). The spread differences are driven by the bond side: AT&T’s heavier leverage pushes its bond yield approximately 20 basis points wide of T-Mobile and 30 basis points wide of Verizon. T-Mobile offers the most balanced spread profile: meaningful enough to justify the NNN premium over bonds, backed by a credit that is still on an improving trajectory.
As of Q1 2026, the nominal spread is approximately 10 to 135 basis points. T-Mobile bonds yield roughly 5.15% while corporate-guaranteed NNN retail locations trade at 5.25% to 6.50% cap rates. The range is driven by location quality, remaining lease term, and whether the property is a newer T-Mobile build or a converted Sprint location.
It depends on the lease structure. If the Sprint lease has been assigned to or guaranteed by T-Mobile US, Inc. (or its subsidiary Sprint Communications Company LP), then yes, the property is backed by the BBB / Baa2 T-Mobile credit. Some legacy Sprint leases may still list Sprint-era entities as guarantors. Investors should verify the guarantor entity in the actual lease document during due diligence. The credit quality is functionally equivalent in either case because Sprint is a wholly-owned T-Mobile subsidiary.
Yes. T-Mobile’s credit trajectory has been consistently positive since the Sprint merger. The company has delevered from approximately 3.5x debt-to-EBITDA at the time of the merger to under 2.5x currently. Annual free cash flow of $17 billion provides substantial capacity for further debt reduction. Moody’s has a Stable outlook, and the overall trend suggests potential for an additional upgrade to BBB+ / Baa1 over the next one to two years if deleveraging continues.
Considering T-Mobile NNN?
We source corporate-guaranteed T-Mobile NNN properties nationally, including former Sprint locations. On the majority of transactions, the listing broker pays a cooperating commission, so there is typically no separate fee to you as the buyer.
Find It — T-Mobile NNN with verified corporate guarantees. We know which Sprint conversions carry TMUS credit.
Fund It — BBB/Baa2 rising star credit with $17B annual FCF. Strong lender appetite.
Exit It — Telecom NNN in strong retail corridors attracts broad buyer interest.
Exchange It — T-Mobile price points ($800K to $2.5M) fit smaller 1031 exchanges.
