Aug 4 (Reuters) - Equity Residential ( EQR ) raised its

annual funds from operations forecast on Monday due to strong

rental demand and relatively stable supply in its key markets.

The real estate investment trust now expects full-year FFO

in the range of $4.03 to $4.09 per share, compared with its

prior forecast of $3.87 to $3.97 per share.

The Chicago, Illinois-based REIT, which operates rental

apartment properties across the United States, counts the

acquisition, development and management of multifamily

residential properties as its primary business, and holds a

market value of $23.8 billion.

"We are seeing sustained demand and a financially resilient

customer across all our markets, with new supply levels (as) the

main determinant of market revenue performance," said CEO Mark

Parrell.

The percentage of residents renewing their leases in the

quarter remained healthy at 60.1%, compared to 57.6% last year,

while physical occupancy increased to 96.6% in the quarter.

The company saw new lease growth rates decrease to 0.1% from

last year, while renewal rates grew to 5.2% in the three-month

period to June, compared to last year.

Equity Residential ( EQR ) reported funds from operations, on a

diluted basis, of 98 cents per share in the quarter ended June

30, compared to 94 cents per share a year earlier.

It reported quarterly revenue of $768.8 million, missing

estimates of $770.3 million, according to data compiled by LSEG.