May 8 (Reuters) - Federal Realty Investment Trust FRT.N beat first-quarter expectations for funds from operations (FFO) and raised its annual FFO forecast on Thursday, helped by resilient demand for its grocery-anchored commercial retail spaces.

With the supply of rental spaces shrinking, commercial real estate firms have been able to raise rental prices.

The company's portfolio comprises rental real estate in metropolitan areas, including grocery centers, off-price shopping outlets, restaurants and offices.

Peer Kimco Realty KIM.N also raised its annual FFO target last week, citing strong leasing demand.

Federal Realty reported FFO, a key REIT metric, of $1.70 per share for the quarter ended March 31, compared with analysts' average estimate of $1.69 per share, according to LSEG data.

The company now expects annual FFO per share to range between $7.11 and $7.23, compared with its previous target of $7.10 to $7.22.Its comparable portfolio occupancy stood at 93.6% as of March 31, an increase of 180 basis points year-over-year and down 10 basis points sequentially, the company said.

The company's total revenue rose to $309.2 million from $291.2 million a year ago in the first quarter. Analysts had expected revenue of $306.4 million.

(Reporting by Juveria Tabassum in Bengaluru; Editing by Mohammed Safi Shamsi)

((Juveria.Tabassum@thomsonreuters.com;))