AutoNation Credit Rating & NNN Cap Rate

AutoNation Business Overview & NNN Investment Profile

AutoNation is one of the largest automotive retailers in the United States, operating 327 new vehicle franchises from 246 stores, predominantly in major metropolitan markets in the Sunbelt region, as of June 30, 2026 (Form 10-Q). Beyond its franchised dealerships, AutoNation operates collision centers, AutoNation USA stores, automotive auctions, parts distribution centers and a captive auto finance company, AutoNation Finance (Form 10-Q, June 30, 2026); Mike Manley has been CEO since November 2021 (2025 Form 10-K).

The company sells 30 different new vehicle brands; vehicles made by Toyota, Honda, Ford, General Motors, BMW, Mercedes-Benz, Stellantis and Volkswagen accounted for approximately 89% of the new vehicles it sold in 2025 (Form 10-K). This brand diversification reduces single-manufacturer exposure, and parts and service (After-Sales) contributed 48% of total gross profit in 2025 on 17% of revenue (Form 10-K).

AutoNation owns a significant portion of its new vehicle franchise store locations and leases other facilities (2025 Form 10-K). AutoNation-occupied properties can offer large-format sites; confirm the lease term, structure and guarantor in each deal.

AutoNation Credit Rating Analysis

Source: S&P Global Ratings BBB-, as of November 10, 2025; Fitch Ratings BBB-, as of September 22, 2026. Ratings checked September 27, 2026.

Factors relevant to AutoNation’s credit include its scale as one of the largest US automotive retailers and its parts and service business, which contributed 48% of total gross profit in 2025 (Form 10-K). AutoNation reported $1.0 billion of liquidity as of June 30, 2026, including $53 million of cash and $0.9 billion of revolver availability, down from $1.8 billion a year earlier (Forms 8-K, July 25, 2025 and July 31, 2026). AutoNation Finance, its captive auto finance company, adds revenue diversification.

Investors should monitor AutoNation’s quarterly earnings for leverage ratio trends, used vehicle margin normalization, and AutoNation Finance portfolio performance. Its credit ratings from S&P (BBB-) and Fitch (BBB-) are shown with their sources above; we could not confirm a current Moody’s rating.

AutoNation NNN Lease Structure

Lease terms and structures for AutoNation-occupied properties vary by deal; confirm the term and expense obligations in each lease. Under an absolute NNN lease, the tenant pays property taxes, insurance, maintenance and structural repairs as set out in the lease; confirm the obligations in each lease.

Rent escalations vary; confirm them in the lease. Long-term leases on specialized dealership facilities can provide predictable income, but a vacated dealership can be hard to re-lease.

Where AutoNation, Inc. guarantees a lease, confirm the guaranty in the lease documents. A guaranty from the rated parent ties the rent to that parent’s credit, which lenders and investors can underwrite against its S&P and Fitch ratings; without one, underwrite the entity that signs the lease.

AutoNation NNN Cap Rate & Pricing Trends

Live asking cap rates for AutoNation 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: AutoNation.

Remaining lease term, location and franchise brand can all affect pricing.

Dealership properties can be large, which may narrow the buyer pool to larger investors.

AutoNation Real Estate Footprint

AutoNation’s 246 stores (June 30, 2026, Form 10-Q) are predominantly in major Sunbelt metropolitan markets; at December 31, 2025, its largest states by store count were Florida, Texas, California, Colorado and Arizona (Form 10-K). As of June 30, 2026, the portfolio included 327 new vehicle franchises, 52 AutoNation-branded collision centers, 24 AutoNation USA stores, 4 automotive auction operations and 3 parts distribution centers (Form 10-Q). In 2025, the company acquired Audi and Mercedes-Benz stores in Chicago and Mazda and Ford stores in Denver, expanding density in existing markets.

AutoNation Growth & Expansion Outlook

AutoNation’s growth strategy focuses on market density through targeted acquisitions and the scaling of adjacent businesses. AutoNation Finance grew its portfolio to $2.7 billion by the second quarter of 2026 (Form 8-K, July 31, 2026), adding an income stream that diversifies revenue beyond vehicle transactions. AutoNation also reports a minority ownership stake in and collaboration with Waymo, Alphabet’s self-driving technology company (2025 Form 10-K).

The company repurchased 4.1 million shares for $784.8 million in 2025 (Form 10-K) and 2.3 million shares for $457 million in the first half of 2026 (Form 8-K, July 31, 2026).

AutoNation NNN Investment: Pros & Cons

Comparable NNN Tenants