May 2 (Reuters) - Federal Realty Investment Trust ( FRT )

beat market expectations for first-quarter revenue on

Thursday, helped by strong leasing demand for its commercial

rental properties.

Despite higher borrowing rates and a tight rental market,

demand for rental spaces held benefiting Real Estate Investment

Trust's (REIT) like Federal Realty.

Federal Realty also raised the lower end of its forecast for

funds from operations (FFO). It now expects annual FFO per share

to be in the range of $6.67 to $6.87, compared to the prior

forecast range of $6.65 to $6.87 per share.

The REIT's portfolio was 92% occupied and 94.3% leased as of

March 31, 2024.

Grocery-anchored shopping centers, such as Federal Realty

and peer Kimco ( KIM ), have seen steady footfall as consumers

shopped for essentials even in the face of sticky inflation.

Data from Placer.ai showed that footfall at open-air

shopping centers rose to 1.6% in March, compared with a decline

of 3.9% last year.

The company posted revenue of $291.3 million in the quarter

ended March 31, compared with analysts' average estimate of

$290.2 million, according to LSEG data.

In the first quarter, it's FFO came in at $1.64 per share,

in line with analysts' estimates.