Aug 1 (Reuters) - Federal Realty Investment Trust ( FRT )

posted second-quarter revenue above market expectations

and lifted its full-year forecast for funds from operations per

share, citing steady leasing demand and higher rentals for its

commercial real estate properties.

Commercial real estate firms like FRT have thrived in an

environment where a shortage of rental spaces has enabled them

to increase rental rates without dampening the demand.

The REIT's portfolio comprises over 100 diverse properties,

including shopping centers rented to retailers like Walmart ( WMT )

, Best Buy ( BBY ), and Ulta, among others, as

well as dining, entertainment and office spaces located in

densely populated areas.

The Maryland-based company's upbeat sales and forecast

mirror comments from peer Kimco Realty ( KIM ), which posted

strong quarterly revenue and lifted its annual forecast on

Thursday on the back of resilient demand.

FRT now expects 2024 FFO per share to be in the range of

$6.70 to $6.88, compared with its prior FFO forecast range of

$6.67 to $6.87 per share.

The company posted revenue of $296.1 million in the quarter

ended June 30, above analysts' average estimate of $293.6

million, according to LSEG data.