T-Mobile US, Inc. is a wireless carrier whose status in our ratings database is investment grade; see the investment grade credit profile below. The median asking cap rate on the 9 active T-Mobile listings we track with a published cap rate, as of October 16, 2026, is 7.25%, against an index yield of 6.19% for T-Mobile’s rating category, a spread of +106 bps.
Lease obligors vary. T-Mobile completed its merger with Sprint on April 1, 2020, and some store leases were originally signed by Sprint entities that are now T-Mobile subsidiaries; others are signed by T-Mobile operating companies or by authorized dealers. Ownership of a subsidiary does not by itself create a parent guarantee, so check whether the lease was assumed by or is guaranteed by a rated T-Mobile entity. See the T-Mobile credit rating and NNN cap rate page.
T-Mobile Credit Profile
| Metric | Details |
|---|---|
| S&P rating | BBB+ |
| Moody’s rating | no verified rating |
| Status | Investment Grade |
| Rated entities | T-Mobile US, Inc. is the parent company. T-Mobile’s notes are issued by its subsidiary T-Mobile USA, Inc. and guaranteed by T-Mobile US, Inc. and certain subsidiaries (2026 prospectus supplement filed with the SEC). Any Moody’s rating on those notes is a debt rating, not a T-Mobile US issuer rating. |
| Rating sources | S&P Global Ratings BBB+, as of May 11, 2026; Fitch Ratings BBB+, as of May 14, 2026. Ratings checked October 8, 2026. |
The Spread: T-Mobile Bonds vs. NNN
The comparison uses the bond index yield for T-Mobile’s rating category against the median asking cap rate on active T-Mobile listings.
| Metric | T-Mobile bonds (rating-category index) | T-Mobile net lease properties |
|---|---|---|
| Yield measure today | 6.19% (ICE BofA BBB index) | Median asking cap rate 7.25% (9 listings with a cap rate) |
| Spread, cap rate minus index yield | Baseline | +106 bps |
| Obligor | The issuing entity named in the bond’s indenture | The entity that signs or guarantees the lease |
| Investment size | $2,000 face minimum denomination on T-Mobile’s recent U.S. dollar notes, though small trades cost more | $1.28M median asking price |
| Liquidity | Trades over the counter through dealers | Weeks to months to sell |
| Income taxation | Interest taxed as ordinary income | Rent taxed as ordinary income, partly offset by depreciation of the building (land is not depreciable) |
| 1031 exchange | Not eligible; Section 1031 covers real property only | Eligible when held for investment or business use (IRC 1031(a)(1)) |
| Value at the end | Face value at maturity absent default; market price moves before then | Depends on the property, lease term, and market |
| Income growth | Fixed coupon | Only if the lease provides rent increases |
Bond yield: ICE BofA effective yield index for T-Mobile’s rating category via FRED, as of October 1, 2026; it is an index average, not a quote on T-Mobile’s own bonds. Cap rate: median asking cap rate on active listings InvestmentGrade.com tracks, as of October 16, 2026, the date of the latest listing observation; asking cap rates are not closed-sale cap rates. n/a means too few listings to report a median.
Why the Spread Exists
Wireless stores are small retail units whose value depends on location and on the carrier’s long-term store strategy. Buyers price the risk that a store closes or is not renewed, and the possibility that the tenant is a dealer or a subsidiary rather than the rated parent.
Carrier credit itself is shaped by spectrum spending, network investment, and leverage targets, which agencies watch closely.
After-Tax Illustration
The table is a normalized full-year illustration, not a first-year tax projection. It compares a hypothetical bond position assumed to pay an annual cash coupon equal to the index effective yield (an index yield is not the coupon on any actual bond) with an all-cash net lease purchase of the same size at the median asking cap rate. Part of the difference in after-tax cash comes from depreciation. On a taxable sale, gain attributable to straight-line depreciation on the building is generally taxed at up to 25 percent as unrecaptured section 1250 gain (IRC 1(h)(1)(E)). The table does not show which investment does better over a full holding period, which also depends on any change in the property’s value, sale costs and taxes, and what the bond returns at maturity or sale.
| One full year, $2,000,000 invested, all cash | Bond at 6.19% (BBB index) | NNN at 7.25% cap rate |
|---|---|---|
| Pre-tax income | $123,800 | $145,000 |
| Depreciation (building only, 80% of price over 39 years) | $0 | $41,026 |
| Taxable income | $123,800 | $103,974 |
| Federal tax at 40.8% | $50,510 | $42,422 |
| After-tax cash | $73,290 (3.66%) | $102,578 (5.13%) |
Illustration only. Assumes no financing, a 20% land allocation (land is not depreciable), straight-line depreciation with no cost segregation, a combined 40.8% federal rate (37% plus the 3.8% net investment income tax) on both incomes, and no state tax. It ignores closing and management costs, rent changes, and the sale. On a taxable sale, the part of the gain up to the depreciation taken is generally taxed at up to 25% (IRC 1(h)(1)(E), 1(h)(6)), plus the 3.8% net investment income tax where it applies (IRC 1411). A 1031 exchange into like-kind real property can defer that tax (IRC 1031(a)), but gain is taxable up to the cash and the value of any other non-like-kind property received (IRC 1031(b)). With cost segregation or other accelerated depreciation, part of the gain can be taxed as ordinary income even in an exchange (IRC 1245(b)(4), 1250(d)(4)). A bond bought at par returns par at maturity. Bond yield is the ICE BofA index yield for the tenant’s rating category via FRED; cap rate is the median asking cap rate on active listings InvestmentGrade.com tracks. Consult a tax advisor for your situation.
Frequently Asked Questions
How is T-Mobile rated?
Our ratings database shows S&P at BBB+ for T-Mobile US, Inc.; for Moody’s it shows no verified rating. T-Mobile’s notes are issued by T-Mobile USA, Inc. and guaranteed by T-Mobile US, Inc. and certain subsidiaries, so any Moody’s rating on those notes is a debt rating rather than a T-Mobile US issuer rating. The lease tenant may be a different T-Mobile entity or a dealer, so confirm the tenant and any guarantee.
Is a legacy Sprint lease backed by T-Mobile?
Only if T-Mobile or another rated entity assumed or guarantees it. Sprint entities are T-Mobile subsidiaries, but a subsidiary’s lease is not automatically equivalent to a parent obligation. Review the lease, any assignment, and any guarantee.
What is the spread between T-Mobile bonds and NNN cap rates?
The median asking cap rate on active T-Mobile listings we track is 7.25% against an index yield of 6.19% for its rating category, a spread of +106 bps. An asking cap rate and an index effective yield are different measures.
Considering T-Mobile Net Lease Property?
We source T-Mobile properties nationally and underwrite the lease, the obligor, and the real estate. On the majority of transactions, there is no separate fee to you as the buyer.
Find it: T-Mobile properties across lease terms and markets.
Fund it: financing matched to the tenant’s credit and the remaining lease term.
Exit it: buyers for T-Mobile properties, including 1031 exchange buyers.
Exchange it: 1031 execution against the deadlines.
Related Reading
Educational content only. InvestmentGrade.com is a commercial real estate brokerage and educational publisher. We do not sell, broker, underwrite, or solicit any bonds, securities, or investment products. Yields, ratings, and prices referenced fluctuate continuously and are sourced from public market data as of the date noted. Nothing on this page constitutes investment advice, an offer to sell, or a solicitation to buy any security. Consult a licensed broker-dealer, registered investment advisor, or tax professional before making any investment decision. For SEC investor education, visit investor.gov.
