July 31 (Reuters) - Kimco Realty KIM.N raised its forecasts for annual funds from operations and earnings on Thursday, driven by steady leasing demand for the real estate investment trust's grocery-anchored shopping centers.

WHY IT'S IMPORTANT

Kimco has benefited from steady demand from tenants such as retailers and grocers that are retaining consistent sales as rising prices compel shoppers to prioritize essentials.

Commercial real estate firms like Kimco have also thrived as limited rental space has allowed them to raise rents without dampening demand.

Peer Regency Centers REG.O also raised its full-year FFO forecast on Tuesday, citing resilient tenant demand despite macroeconomic uncertainties, including fluctuating tariffs under President Donald Trump.

KEY QUOTE$(S)$

"The modest dip in overall occupancy due to the bankruptcies of JOANN and Party City was significantly less than anticipated, further evidencing the strong tenant demand for our well-located centers and the resilient consumer demand for necessity-based essential goods and services," CEO Conor Flynn said.

BY THE NUMBERS

The company posted funds from operations of 44 cents per share in its second-quarter ended June 30, narrowly beating estimates of 43 cents per share, according to data compiled by LSEG.

The company expects its full-year funds from operations per share - a key REIT metric - between $1.73 and $1.75, compared with a prior target of $1.71 to $1.74.

The company forecast annual earnings per share in the range of 74 cents to 76 cents, compared with 70 cents to 73 cents earlier.

(Reporting by Aatrayee Chatterjee in Bengaluru; Editing by Sahal Muhammed)

((aatrayee.chatterjee@thomsonreuters.com))