Tractor Supply Company is the largest rural lifestyle retailer in the United States, operating over 2,200 stores under the Tractor Supply and Petsense brands. Its BBB / Baa1 credit rating backs both senior unsecured bonds yielding approximately 5.05% and NNN properties trading at 5.50% to 6.50% cap rates, producing a nominal spread of 45 to 145 basis points on identical corporate credit.
For the full 21-company comparison, see the Bond-to-NNN Spread Anchor Page. For the complete Tractor Supply tenant analysis, see the Tractor Supply Credit Rating and NNN Cap Rate page.
Tractor Supply Credit Profile
| Metric | Details |
|---|---|
| S&P Rating / Outlook | BBB / Stable |
| Moody’s Rating / Outlook | Baa1 / Stable |
| Investment Grade Status | Investment Grade |
| Ticker | NASDAQ: TSCO |
| US Store Count | 2,200+ (Tractor Supply + Petsense) |
| Annual Revenue | ~$14.6 billion (FY2024) |
The Spread: Tractor Supply Bonds vs. NNN
| Metric | TSCO Corporate Bond | TSCO NNN Property |
|---|---|---|
| Yield / Cap Rate | ~5.05% (5-10yr senior unsecured) | 5.50% to 6.50% |
| Nominal Spread vs. Bond | Baseline | +45 to +145 bps |
| Minimum Investment | ~$1,000 (via broker) | ~$2,500,000 to $6,000,000 |
| 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 | 15,000 to 22,000 SF + outdoor yard |
Bond yield is approximate, derived from Tractor Supply’s BBB/Baa1 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 Rural Retailer That Acts Like an Essential Service
Tractor Supply occupies a distinctive niche in both the bond market and the NNN market. The company serves a customer base (farmers, ranchers, hobby farmers, rural homeowners, and pet owners) that purchases largely non-discretionary products: livestock feed, fencing, animal health products, seasonal maintenance supplies, and work clothing. This demand profile makes Tractor Supply more recession-resistant than most specialty retailers, which is reflected in its BBB / Baa1 credit rating and 30+ consecutive quarters of positive comparable store sales through multiple economic cycles.
The NNN spread exists for the same reason it does in the dollar store sector: Tractor Supply stores are located in rural and semi-rural communities where the NNN market demands a cap rate premium for lower population density and thinner resale liquidity. The bond market prices Tractor Supply as a $14.6 billion national retailer with dominant market share. The NNN market prices each individual store based on its specific market demographics. The gap between these two pricing frameworks creates the 45 to 145 basis point spread.
Tractor Supply vs. Dollar General: The Rural Retailer Comparison
Bond investors comparing rural NNN opportunities will notice that Dollar General offers a wider spread (145 to 245 bps) than Tractor Supply (45 to 145 bps). Three factors drive this difference. First, Tractor Supply carries a stronger Moody’s rating (Baa1 vs. Baa3), which tightens the bond yield. Second, Tractor Supply stores are larger format (15,000 to 22,000 SF vs. 7,000 to 9,000 SF for Dollar General), and the NNN market generally rewards larger buildings with lower cap rates because they can serve a wider range of replacement tenants. Third, Tractor Supply’s average ticket and revenue per store are significantly higher than Dollar General’s, which supports a stronger rent-to-sales ratio and more confident lease renewal assumptions.
For investors building a rural NNN portfolio, combining Tractor Supply and Dollar General provides tenant and format diversification within the same geographic markets, capturing spreads from 45 to 245 basis points on investment grade credit.
As of Q1 2026, the nominal spread is approximately 45 to 145 basis points. Tractor Supply bonds yield roughly 5.05% while NNN properties trade at 5.50% to 6.50% cap rates. The after-tax spread is wider because NNN income is sheltered by depreciation while bond interest is fully taxed as ordinary income.
More than most retailers. Tractor Supply’s core customer buys livestock feed, fencing, animal health supplies, and seasonal essentials that cannot be deferred regardless of economic conditions. The company grew comparable store sales through the 2008 financial crisis and the 2020 pandemic. This demand stability supports both the BBB / Baa1 credit rating and the durability of NNN lease obligations.
Typical Tractor Supply stores are 15,000 to 22,000 SF of enclosed retail space plus a significant outdoor sales and storage yard. Total lot sizes commonly run 3 to 5 acres. The combination of enclosed and outdoor space makes these properties well-suited for a range of alternative users if the tenant were to vacate, including farm supply competitors, building materials retailers, and outdoor recreation retailers.
Considering Tractor Supply NNN?
We source Tractor Supply NNN properties nationally. 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 — Tractor Supply NNN with corporate guarantees in growing rural markets.
Fund It — BBB/Baa1 credit with strong lender familiarity.
Exit It — Growing institutional interest in rural essential retail NNN.
Exchange It — TSCO price points ($2.5M to $6M) fit mid-range 1031 exchanges.
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