Home Depot Credit Rating & NNN Cap Rate (2026)

Home Depot Business Overview & NNN Investment Profile

Home Depot is the world’s largest home improvement retailer based on net sales for fiscal 2025, with 2,035 U.S. stores at the end of that year, and it serves consumers, including do-it-yourself (DIY) customers, and professional customers (Pros) (Form 10-K for fiscal 2025). Its agency ratings are listed in the table above; for NNN investors, the entity that signs and any entity that guarantees a specific lease still need to be confirmed. The company completed its acquisition of SRS Distribution Inc. (SRS), a specialty trade distributor serving professional roofers, landscapers and pool contractors, on June 18, 2024, for a total enterprise value of approximately $18.25 billion (Form 8-K, June 18, 2024), and SRS completed its acquisition of GMS on September 4, 2025 (Form 10-K for fiscal 2025). SRS and GMS operate distribution branches, a different property type from Home Depot stores; the Home Depot listing figures on this page cover Home Depot store properties (as of October 8, 2026).

Home Depot stores average approximately 104,000 square feet of enclosed space plus approximately 24,000 square feet of outside garden area, and about 90% of its stores in the U.S., Canada and Mexico are owned, a figure that includes stores subject to ground leases (Form 10-K for fiscal 2025). Land area, lease type, term, rent increases and any guarantee vary by property, so confirm them in the lease.

Home Depot’s fiscal 2025 net sales rose 3.2% to $164.7 billion, driven primarily by the SRS and GMS acquisitions, which together contributed approximately $6.3 billion of incremental net sales; sales from new stores and a positive comparable sales environment also contributed (Form 10-K for fiscal 2025). Its agency ratings appear in the table above; a rating does not by itself assure that a particular store will stay open or that a lease will be renewed.

Home Depot Credit Rating Analysis

S&P Global Ratings rates The Home Depot, Inc. A; for Moody’s, our ratings database shows A2. The source and date for each rating in our database are listed below. A rating of BBB‑ or higher from S&P or Fitch, or Baa3 or higher from Moody’s, is investment grade; see the investment grade guide.

Source: S&P Global Ratings A, as of March 9, 2026; Moody’s A2, Stable, as of September 8, 2025; Fitch Ratings A, Stable, as of September 8, 2025. Ratings checked October 8, 2026.

Strengths include Home Depot’s position as the world’s largest home improvement retailer based on fiscal 2025 net sales and a customer base that spans consumers and professional contractors. SRS, acquired in June 2024 for a total enterprise value of approximately $18.25 billion, serves professional roofers, landscapers and pool contractors (Form 8-K, June 18, 2024). Home Depot owns about 90% of its stores in the U.S., Canada and Mexico, including stores subject to ground leases, rather than leasing most of them (Form 10-K for fiscal 2025).

Factors Home Depot itself identifies in its fiscal 2025 Form 10-K include adverse conditions in the housing and home improvement markets and the economy, the cost and availability of labor, competition, and its ability to realize the anticipated benefits of acquisitions, including SRS and GMS.

Home Depot NNN Lease Structure

Home Depot lease terms, renewal options and rent increases vary by property, so confirm them in the lease, along with which entity signs it and whether The Home Depot, Inc. guarantees it. Home Depot reports that real estate taxes, insurance, maintenance and operating expenses applicable to leased assets are generally its obligations under its lease agreements (Form 10-K for fiscal 2025); confirm the expense terms in the specific lease.

Home Depot stores are large, averaging approximately 104,000 square feet of enclosed space plus approximately 24,000 square feet of outside garden area (Form 10-K for fiscal 2025); land area and parking vary by site. A building that large can have few like-for-like replacement tenants, so the tenant’s credit and its commitment to the location matter to the underwriting.

Renewal terms vary: confirm whether renewal rent is fixed or set at fair market value, and confirm the landlord’s maintenance and capital obligations, in the lease.

Home Depot NNN Cap Rate & Pricing Trends

Live asking cap rates for Home Depot and Lowe’s:

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.

The Home Depot figures cover listings of Home Depot store properties; as of October 8, 2026, they did not include properties leased to its distribution subsidiaries. Lowe’s appears only when at least three of its listings report a cap rate. Pricing for a specific Home Depot property depends on whether it is a ground lease or a building lease, the remaining term, rent increases and the location, and asking cap rates are not closed-sale cap rates.

Home Depot Real Estate Footprint

Home Depot’s 2,035 U.S. stores at the end of fiscal 2025 span all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands and Guam, with the largest counts in California (247), Texas (190) and Florida (163) (Form 10-K for fiscal 2025).

Site layouts vary, so confirm access, parking and any reciprocal easement agreements for a specific property. Home Depot operated over 500 distribution and fulfillment centers and warehouses at the end of fiscal 2025 (Form 10-K).

Home Depot Growth & Expansion Outlook

Home Depot opened 12 new stores in fiscal 2025 under a plan, begun in fiscal 2023, to open approximately 80 new stores over five years; it expects to complete that plan in fiscal 2027 and then open approximately 15 to 20 new stores per year (Form 10-K for fiscal 2025). Home Depot says it believes the GMS acquisition will enhance SRS’s position as a leading multi-category building materials distributor (Form 10-K for fiscal 2025).

Home Depot describes its strategy as driving its core and culture, delivering a frictionless interconnected customer experience and winning with Pros. Its stated capital allocation principles are to reinvest in the business first, then pay a quarterly dividend, and then return excess cash to shareholders through share repurchases (Form 10-K for fiscal 2025).

Home Depot NNN Investment: Pros & Cons

Comparable NNN Tenants

Frequently Asked Questions