Tractor Supply Co. Tenant Overview

Net Lease Advisor Tenant Tractor Supply


  • Increases in base term on most leases
  • Excellent yield on a risk adjusted basis
  • Several lease extensions of five years each


  • NN leases make landlord responsible for roof and structure
  • Rural and tertiary locations

Earnings Highlights

Earnings Summary
  • Net sales increase 35% in Q2 2020
  • Comparable store sales increased 30.5% with Strong Double-Digit Growth Across All Product Categories and Regions in Q2 2020
  • Gross profit increased 41.0% to $1.16 billion from $820.7 million in the second quarter of 2019
  • Gross profit increased 26.6% to $1.82 billion from $1.44 billion in the first six months of 2019

Tenant Description

Tractor Supply Co. is the largest operator of rural lifestyle retail stores in the US.

Tractor Supply is a highly sought after net lease brand because its aggressive expansion and financial strength. Tractor Supply stores dominate a corner of the market. They “supply the unique products to support their customers' rural lifestyle, from welders and generators to animal care products and men and women's work-wear. You can also find pet supplies, animal feed, power tools, riding mowers, lawn and garden products and more. Each store team includes welders, farmers and horse owners who collectively provide an exceptional depth of knowledge and resources.” No other Big-Box retailer can match the width of products and depth of the staff’s knowledge. Tractor Supply will remain an attractive net lease asset as they continue to thrive financialy.

Tractor Supply stores are primarily located in towns outlying major metropolitan markets and in rural communities. The typical Tractor Supply store has about 19,000 square feet of space inside, with a similar amount of outside area due to their large outdoor displays The Company leases approximately 93% of its stores, two distribution sites and its Merchandising Innovation Center located in Nashville, Tennessee. Store leases typically have initial terms of 15 years, with two (2) to four (4) renewal periods of five (5) years each.

As of 12/29/2018, Tractor Supply Co operates 1,765 stores in 49 states and employs more than 24,000 team members. Tractor Supply Co also owns and operates Pensense, a small-box pet specialty supply retailer which has 175 locations in 26 states. Tractor Supply Co is headquartered in Brentwood, Tenn and its stock is traded on the NASDAQ exchange under the symbol "TSCO". In 2018 Tractor Supply was #391 on the Fortune 500.

The company was founded in 1938 as a mail order catalog business offering tractor parts to America's family farmers. Today Tractor Supply is a leading-edge retailer with annual revenues of approximately $7.91 billion.

Average Cap Rate
12 mo avg with 10+ yr lease term
Average Property & Lease
Average Sale Price $4,977,300
NOI $268,900
$/Square Foot $226
Building SF 22,000
Lot Size 2.0 - 5.0 Acres
Lease Term 15 Years
Escalations 5 - 10% Every 5 Years
Stock Symbol TSCO
Credit Rating
Moody's N/A
Average Cap Rate Trend
Rates reflect year-over-year comparison
Recent Sales Comps
Giddings, TX 5.25%
Apopka, FL 5.42%
Fountain Hills, AZ 5.45%