Oct 28 (Reuters) - Regency Centers ( REG ) raised its

annual funds from operations(FFO) forecast after beating

third-quarter estimates for the same on Monday, helped by strong

leasing demand at its grocery-anchored shopping centers.

Real Estate Investment Trusts (REIT), including Regency

Centers ( REG ), have been benefiting from resilient tenant demand from

retailers such as Target ( TGT ) and Kroger ( KR ), who have

seen increased sales, as consumers continue to purchase daily

essentials like groceries.

KeyBanc analysts recently observed that REIT portfolios are

outperforming the broader industry, with market share gains and

stronger rent growth for both new and renewal leases.

Regency Centers ( REG ) expects annual National Association of Real

Estate Investment Trusts (Nareit) FFO per share to be between

$4.27 and $4.29, compared with its prior FFO forecast range of

$4.21 to $4.25 per share.

For the quarter, the company reported FFO of $1.07 per

share, compared to analysts' average estimate of $1.04 per

share, according to data compiled by LSEG.

Visits to superstores increased by 2% year-over-year from

July to September, while grocery store visits rose by 1.6%

during the same period, according to Placer.ai data.

Regency Centers' ( REG ) portfolio includes over 400 properties,

which are leased by grocers such as Kroger ( KR ) and Amazon's

Whole Foods, along with retailers like TJX,

Kohl's, Ulta Beauty ( ULTA ) and Target ( TGT ), among

others.

The company also forecast its annual core operating earnings

per diluted share to a range between $4.12 and $4.14, compared

with its previous forecast range of $4.06 to $4.10 per share.