May 6 (Reuters) - Simon Property Group ( SPG ) raised

the forecast for annual funds from operations (FFO) on Monday,

helped by strong leasing demand at its malls and shopping

centers.

Demand for rental spaces of the commercial real estate

investment trusts (REIT) has held up, as its diverse portfolio

of tenants comprising apparel giants, big-box retailers,

restaurants, and luxury brands benefited from consumers

stretching their budgets for affordable luxuries despite sticky

inflation.

Last week, peers Federal Realty Trust, Regency

Centers ( REG ), and Kimco ( KIM ) also reported steady traffic

at their shopping centers.

Simon Property ( SPG ) expects FFO per share to be in the range of

$12.75 to $12.90, compared with its prior FFO forecast of $11.85

to $12.10 per share.

Visits to indoor malls in the U.S. fell 5% fall in March

compared to an 8.5% drop seen last year, according to data

analytics firm Placer.ai. Open-air shopping centers saw visits

rising 1.6% in March, compared with a decline of 3.9% last year.

The company reported FFO in first quarter at $3.56 per

share, compared with analysts' average estimate of FFO $2.81 per

share, according to LSEG data.

Its base minimum rent per square foot rose 3% to $57.53 as

of March 31, compared to $55.84 last year.

The company posted revenue of $1.44 billion in the quarter

ended March 31, compared with analysts' average estimate of

$1.29 billion.