Walmart is one of the highest-rated investment grade retailers. Today the median asking cap rate on Walmart listings is 5.25% against an AA bond index yield of 5.80%, a spread of −55 bps.
Walmart owns most of its U.S. stores, so the properties leased to it that come to market are a mix of supercenter ground leases and smaller formats such as Neighborhood Markets, which affects the median. See the Walmart credit rating and NNN cap rate page.
Walmart Credit Profile
| Metric | Details |
|---|---|
| S&P rating / outlook | AA |
| Moody’s rating / outlook | Aa2 |
| Status | Investment Grade |
| Rated entity in our database | Walmart Inc. |
| Rating sources | S&P Global Ratings AA, as of August 28, 2026; Moody’s Aa2, as of August 28, 2026; Fitch Ratings AA, as of August 28, 2026. Ratings checked September 27, 2026. |
The Spread: Walmart Bonds vs. NNN
The comparison uses the bond index yield for Walmart’s rating category against the median asking cap rate on active Walmart listings.
| Metric | Walmart bonds (rating-category index) | Walmart net lease properties |
|---|---|---|
| Yield measure today | 5.80% (ICE BofA AA index) | Median asking cap rate 5.25% (9 listings with a cap rate) |
| Spread, cap rate minus index yield | Baseline | −55 bps |
| Obligor | The issuing entity named in the bond’s indenture | The entity that signs or guarantees the lease |
| Minimum investment | $2,000 minimum denomination on Walmart’s April 2026 notes, then $1,000 increments | $9.92M 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 | Eligible |
| 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 Walmart’s rating category via FRED, as of October 1, 2026; it is an index average, not a quote on Walmart’s own bonds. Cap rate: median asking cap rate on active listings InvestmentGrade.com tracks, as of today; asking cap rates are not closed-sale cap rates. n/a means too few listings to report a median.
Why the Spread Exists
Asking cap rates differ across the Walmart listings we track, which mix store formats, ground leases and other lease structures, locations, and remaining lease terms (October 2026). The median reflects whichever properties happen to be for sale.
After-Tax Illustration
The table compares one full year of after-tax cash for a fee simple property using today’s AA index yield and median asking cap rate. On a ground lease there is no depreciation and both incomes are fully taxable.
| One full year, $2,000,000 invested, all cash | Bond at 5.80% (AA index) | NNN at 5.25% cap rate |
|---|---|---|
| Pre-tax income | $116,000 | $105,000 |
| Depreciation (building only, 80% of price over 39 years) | $0 | $41,026 |
| Taxable income | $116,000 | $63,974 |
| Federal tax at 40.8% | $47,328 | $26,102 |
| After-tax cash | $68,672 (3.43%) | $78,898 (3.94%) |
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
What is the spread between Walmart bonds and NNN cap rates?
Today the median asking cap rate on Walmart listings is 5.25% against a AA bond index yield of 5.80%, a spread of −55 bps.
How is Walmart rated?
Walmart Inc. is rated AA by S&P and Aa2 by Moody’s, per our ratings database.
Can a Walmart ground lease owner take depreciation?
Not on the land. Land is not depreciable (IRS Publication 946), and Walmart’s Form 10-K for the year ended January 31, 2026 reports stores Walmart owns on leased land; where the tenant owns the building, the land owner has no building to depreciate. Confirm ownership of the improvements in the lease.
Considering Walmart Net Lease Property?
We source Walmart 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; the listing broker pays a cooperating commission.
Find it: Walmart properties across lease terms and markets.
Fund it: financing matched to the tenant’s credit and the remaining lease term.
Exit it: buyers for Walmart 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.
