(Reuters) -Simon Property Group reported a rise in second-quarter real estate funds from operations (FFO) on Monday, supported by robust leasing demand for the commercial real estate investment trust's shopping centers.

A tight supply of rental properties has allowed mall operators such as Simon Property to raise rental rates.

Peer Kimco Realty raised projections for annual FFO and earnings last week, helped by steady leasing demand for its grocery-anchored shopping centers.

Simon Property Group reported second-quarter real estate FFO, a key performance metric for REITs, of $3.05 per share, compared with $2.93 per share a year earlier.

The company's occupancy levels at its malls and premium outlets for the quarter ended June 30 increased 0.4% from a year ago, reaching 96%.

Its base minimum rent per square foot rose to $58.70 from $57.94 a year ago.

The mall operator, which counts LVMH - the luxury conglomerate behind Louis Vuitton and Tiffany & Co - among its top tenants, now expects its 2025 FFO to be between $12.45 and $12.65 per share, compared with its previous target of $12.40 to $12.65.

The company's second quarter revenue from lease income was $1.38 billion, up from $1.32 billion a year ago.