Feb 13 (Reuters) - Federal Realty Investment Trust FRT.N forecast annual funds from operations (FFO) above estimates on Thursday, betting on higher rental prices and growing leasing demand for its commercial real estate spaces.

Retailers and grocery store operators such as Nordstrom JWN.N and Walmart WMT.N — who are seeing steady consumer demand — have been expanding their footprint, helping boost demand for real estate investment trusts including Federal Realty and Regency Centers REG.O.

Federal Realty said that, as of December 31, 2024, its portfolio was 96.2% leased, an over 200-basis-point increase compared with the prior year.

Federal Realty's portfolio comprises over 100 diverse properties in densely populated areas, including dining, entertainment and office spaces.

It also includes shopping centers rented to retailers such as Target TGT.N, Best Buy BBY.N, Nike NKE.N and Trader Joe's, among others.

Federal Realty expects annual FFO per share to be in the range of $7.10 to $7.22, compared with analysts' expectations of $7.00.

The company's quarterly revenue rose 6.7% to $311.4 million, compared with the analysts' average estimate of $311.3 million, according to data compiled by LSEG.

Its quarterly funds from operations, a key metric for REITs, came in at $1.73 per share, compared with an analysts' estimate of $1.74 per share.

Regency, which also counts Ulta Beauty ULTA.O and TJ Maxx-parent TJX TJX.N among its tenants, topped fourth-quarter estimates for FFO, and Kimco Realty KIM.N, which focuses on grocery-anchored shopping centers, posted a year-over-year growth in quarterly FFO.

(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Alan Barona)

((AnanyaMariam.Rajesh@thomsonreuters.com; X: @AnanyaMariam))