(Reuters) - Simon Property Group ( SPG ) lowered annual forecast for net income and missed second-quarter estimates for funds from operations (FFO) on Monday.

Demand for Real Estate Investment Trusts (REITs), like Simon Property ( SPG ), faltered as inflation-weary consumers kept a tight lid on spending and pressured expansion plans of real estate tenants such as restaurants and retailers.

Simon Property ( SPG ) has a diverse portfolio of tenants comprising apparel giants such as Lululemon, Nike, restaurants like Cheesecake Factory and other luxury brands.

The commercial REIT now expects annual net income attributable to shareholders in the range of $7.37 to $7.47 per share, compared with its prior forecast of $7.38 to $7.53 per share.

For the quarter, the company reported FFO of $2.90 per share, below analysts' estimate of $2.94 per share, according to LSEG data.

The REIT, however, lifted the lower end of its annual FFO forecast, from the earlier $12.75 to $12.90 per share, to between $12.80 and $12.90 per share.

It also posted revenue of $1.46 billion in the quarter ended June 30, compared with analysts' average estimate of $1.30 billion.