Dillard's Credit Rating & NNN Cap Rate

Metric	Details
Entity / Legal Name	Dillard’s, Inc.
Credit Ratings	Fitch: BBB-
Investment Grade Status	Investment Grade
Sector	Department Store / Fashion Retail
US Store Count	271 stores in 30 states, including 28 clearance centers (January 31, 2026, Form 10-K)
Median asking cap rate	Too few active Dillard's listings with a published cap rate for a median; see peers in the live table below
Typical Lease Term	Varies; confirm in the lease (most Dillard’s stores are owned, not leased)
Guarantee Type	Varies; confirm the tenant entity and any guaranty in the lease
Stock Ticker	DDS. Dillard’s notified the NYSE on September 17, 2026 that it would transfer the primary listing of its Class A common stock to the Texas Stock Exchange, with trading there expected to begin October 5, 2026 (Form 8-K), and filed a Form 25 on October 5, 2026 to withdraw the stock from NYSE listing
Annual Revenue	$6.56B (fiscal year ended January 31, 2026: net sales of $6.47B plus service charges and other income, Form 10-K)
Average Store Size	About 170,000 SF average (46.0 million SF across 271 stores, January 31, 2026, Form 10-K)

Dillard’s Business Overview & NNN Investment Profile

Dillard’s says it ranks among the nation’s largest fashion apparel, cosmetics and home furnishing retailers, and it operated 271 stores in 30 states, primarily in the southwest, southeast and midwest, as of January 31, 2026 (Form 10-K). It has a family-controlled ownership structure: holders of its Class B common stock elect two-thirds of the Board of Directors, and nearly all of those shares were held by W.D. Company, Inc., a Dillard family holding company, until that company merged into Dillard’s on June 4, 2026 and its shareholders received the shares directly (Form 10-K; Form 10-Q, quarter ended August 1, 2026). The Little Rock, Arkansas-based retailer’s ratings in our tenant ratings database are Fitch: BBB-, and its investment grade status there is investment grade.

Current Ratings: Fitch: BBB-. Dillard’s reported $321.7 million of long-term debt and $200 million of subordinated debentures at January 31, 2026, and repaid $96.0 million of long-term debt in the first half of fiscal 2026 (Form 10-K; Form 10-Q, quarter ended August 1, 2026).

Dillard’s Credit Rating Analysis

William Dillard, II has been Chief Executive Officer since 1998, and the company opened no new locations in fiscal 2025 (Form 10-K). The company reported no borrowings under its revolving credit facility in fiscal 2023 through 2025, repurchased $107.8 million of stock in fiscal 2025 and $121.0 million in fiscal 2024, and paid special dividends of $30.00 per share in fiscal 2025 and $25.00 per share in fiscal 2024 (Form 10-K). Dillard's, Inc. carries issuer rating of BBB- from Fitch Ratings: investment grade (BBB-/Baa3 or higher).

Source: Fitch Ratings BBB-, as of July 31, 2026. Ratings checked October 8, 2026.

Dillard’s cash and short-term investments of approximately $1.1 billion exceeded its $521.7 million of long-term debt and subordinated debentures at January 31, 2026 (Form 10-K). Dillard’s owned 248 of its 271 stores at that date (Form 10-K).

Dillard’s NNN Lease Structure & Real Estate Ownership

A critical distinction for NNN investors: most Dillard’s stores are owned rather than leased. At January 31, 2026, Dillard’s owned 248 of its 271 stores; 15 were leased, 7 were company-owned buildings on leased land and 1 was partially owned and partially leased (Form 10-K). Few Dillard’s stores are therefore leased from third-party landlords; confirm the structure and the tenant entity in any lease offered.

Lease terms, rent structure and expense responsibilities vary, so confirm them in the lease. Dillard’s says its third-party store leases typically provide for rent based on a percentage of net sales with a guaranteed minimum annual rent, and that in general it pays insurance, maintenance and real estate taxes on leased stores (Form 10-K). Its stores average about 170,000 square feet (46.0 million square feet across 271 stores at January 31, 2026), so a single property is a large asset.

Dillard’s NNN Cap Rate & Pricing Trends

Live asking cap rates for Dillard’s and comparable tenants:

Tenant	S&P / Moody’s	Median asking cap rate	Middle half of listings	Listings	Median vs. 10-year Treasury
The Home Depot	A / A2	5.48%	5.35% to 5.75%	6	+23 bps
Kohl's	B+ / B2	7.63%	7.38% to 7.89%	8	+239 bps
DICK'S Sporting Goods	BBB / Baa2	8.00%	7.18% to 8.00%	3	+276 bps

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 16, 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: Dillard's.

When pricing a large department store, weigh how hard the building would be to re-tenant and the store’s sales where available, not only the tenant’s credit. No active Dillard’s net lease listings are in the data InvestmentGrade.com tracks right now, so compare any offering with the comparable tenants in the live table.

Dillard’s NNN Investment: Pros & Cons

Pros	Cons
Ratings of BBB- (investment grade); cash and short-term investments exceeded long-term debt and subordinated debentures at January 31, 2026 (Form 10-K)	About 170,000 SF average store: large-format buyer market
No borrowings under its revolving credit facility in fiscal 2023 through 2025 (Form 10-K)	Department store format: weigh store sales trends and re-use options
Owned 248 of its 271 stores at January 31, 2026 (Form 10-K)	Few leased Dillard’s stores, and re-tenanting a large department store can be complex
Operating cash flow of $717.0 million in fiscal 2025 (Form 10-K)	Stores located primarily in the southwest, southeast and midwest (Form 10-K)

Comparable Large-Format NNN Tenants

Comparable Tenant	Rating
Kohl’s	B+/B2
Dick’s Sporting Goods	BBB/Baa2
Home Depot	A/A2

Is Dillard’s investment grade?

Yes. Dillard's, Inc. carries issuer rating of BBB- from Fitch Ratings: investment grade (BBB-/Baa3 or higher). Dillard’s had $321.7 million of long-term debt and $200 million of subordinated debentures at January 31, 2026, against approximately $1.1 billion of cash and short-term investments (Form 10-K).

Does Dillard’s own or lease its stores?

Dillard’s owned 248 of its 271 stores at January 31, 2026; 15 were leased, 7 were company-owned buildings on leased land and 1 was partially owned and partially leased (Form 10-K). Few Dillard’s stores are therefore leased from third-party landlords.

What are asking cap rates for Dillard’s NNN properties?

The live table on this page shows median asking cap rates for comparable tenants, and for Dillard’s when at least three active Dillard’s listings with a published cap rate are in our data. Pricing for a specific property depends on the remaining lease term, rent level, location and lease guarantor, and asking cap rates are not closed-sale cap rates.

Dillard’s Net Lease Property: Buying, Selling and Financing

Buying: We find on-market and off-market Dillard’s properties, review the lease and the tenant’s credit, and compare pricing with current listings. On the majority of transactions, there is no separate fee to you as the buyer; the listing broker pays a cooperating commission.

Selling: We can prepare an opinion of value from current listings and recent sales and, when it fits your goals, run a confidential sale to private investors, family offices and institutional buyers. See our guide to off-market sales.

Financing: Investment Grade Capital, a service of Investment Grade LLC, matches buyers and owners with lenders for acquisitions and refinancing.

1031 exchanges: Tell us your identification and closing deadlines so we can plan the search around them.

Request an NNN investment consultation or email team@investmentgrade.com.

Dillard’s Credit Rating & NNN Cap Rate