Oct 31 (Reuters) - Kimco Realty ( KIM ) raised its

forecast for annual funds from operations and beat Wall Street

estimates for third-quarter FFO on Thursday, helped by strong

leasing demand at the real estate investment trust's

grocery-anchored retail centers.

WHY IT IS IMPORTANT

A decline in new commercial space developments and fierce

competition among retailers have strengthened demand for rental

spaces, including strip mall centers, leading to a spike in

lease revenue.

KEY QUOTE

"Our high-quality, grocery-anchored properties continue to

deliver outsized growth, record occupancy and advantageous

pricing power," CEO Conor Flynn said in a statement.

"Moreover, our recent acquisition of the Waterford Lakes

Town Center in Orlando positions us to be a net acquirer in

2024."

BY THE NUMBERS

The Jericho, New York-based firm now expects its full-year

FFO - a key REIT metric that defines cash flow from core

operations - to be between $1.64 and $1.65 per share, compared

with its previous range of $1.60 to $1.62 per share.

Kimco's ( KIM ) portfolio occupancy rate rose by 90 basis points

year-on-year to 96.4% in the quarter.

Total quarterly revenue rose nearly 14% to $507.6 million,

versus estimates of a 12.63% rise to $497.6 million. Its net

revenue from rental properties also jumped 14%.

Third-quarter FFO rose 7.5% to 43 cents per share. Analysts

had expected 41 cents.

Kimco ( KIM ) raised its total acquisitions forecast for the year to

between $565 million and $625 million, from its previous

projection of $300 million to $350 million.