Aug 6 (Reuters) - Realty Income ( O ) raised the lower

end of its annual adjusted funds from operations (FFO) forecast

on Wednesday, as the company expects improving demand for its

properties despite an uncertain macroeconomic backdrop.

The real estate investment trust now expects adjusted FFO

for 2025 in the range of $4.24 to $4.28 per share, up from its

prior forecast of $4.22 to $4.28 per share.

"As demand for durable income solutions accelerates amidst a

growing retiree demographic, and as corporations increasingly

seek to unlock capital from real estate, we believe our model is

well-positioned to thrive," CEO Sumit Roy said.

Realty Income ( O ), which recently completed a $9.3 billion

merger with Spirit Realty Capital, handles a porfolio of more

than 15,600 commercial properties and leases them to over 1,500

clients across the retail, restaurant and gaming industries.

The company stands to benefit from rising rental revenues as

demand for its properties increases amid growing competition

among retailers. It counts Walgreens and Dollar General ( DG )

among its clients.

The company's same-store rental revenues in the second

quarter increased to $1.17 billion, compared with $1.15 billion

in the same period a year ago.

Total revenue for the quarter ended June 30 was $1.41

billion, exceeding analysts' average estimate of $1.34 billion,

according to data compiled by LSEG.

The San Diego, California-based company reported adjusted

FFO of $1.05 per share for the second quarter, compared to

expectations of $1.07 per share.

Shares of Realty Income ( O ) were marginally higher in extended

trading.