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

forecasts for annual funds from operations and earnings on

Thursday, driven by steady leasing demand for the real estate

investment trust's grocery-anchored shopping centers.

WHY IT'S IMPORTANT

Kimco has benefited from steady demand from tenants such as

retailers and grocers that are retaining consistent sales as

rising prices compel shoppers to prioritize essentials.

Commercial real estate firms like Kimco ( KIM ) have also thrived as

limited rental space has allowed them to raise rents without

dampening demand.

Peer Regency Centers ( REG ) also raised its full-year FFO

forecast on Tuesday, citing resilient tenant demand despite

macroeconomic uncertainties, including fluctuating tariffs under

President Donald Trump.

KEY QUOTE(S)

"The modest dip in overall occupancy due to the bankruptcies

of JOANN and Party City was significantly less than anticipated,

further evidencing the strong tenant demand for our well-located

centers and the resilient consumer demand for necessity-based

essential goods and services," CEO Conor Flynn said.

BY THE NUMBERS

The company posted funds from operations of 44 cents per

share in its second-quarter ended June 30, narrowly beating

estimates of 43 cents per share, according to data compiled by

LSEG.

The company expects its full-year funds from operations per

share - a key REIT metric - between $1.73 and $1.75, compared

with a prior target of $1.71 to $1.74.

The company forecast annual earnings per share in the range

of 74 cents to 76 cents, compared with 70 cents to 73 cents

earlier.