Feb 24 (Reuters) - Realty Income O.N forecast annual adjusted funds from operations below analysts' expectations on Monday, as the real estate investment trust navigates a high interest rate environment and increased property management costs.

Shares of the company fell about 1.8% in extended trading.

Realty Income, which recently closed a $9.3 billion merger with Spirit Realty Capital, owns over 13,000 properties in the United States and leases them to clients across the retail, restaurant and gaming industries.

It expects adjusted funds from operations between $4.22 and $4.28 per share in 2025, falling short of analysts' average estimate of $4.38, according to data compiled by LSEG.

Realty Income's fourth-quarter revenue rose about 24% to $1.34 billion, above a consensus expectation of $1.3 billion. Higher costs, however, pushed its net income down 8.6% to $199.6 million.

The company, which counts Walgreens WBA.O and Dollar General DG.N among its customers, posted same-store rental revenue of $993 million in the quarter, compared to $985 million a year ago.

(Reporting by Utkarsh Shetti in Bengaluru; Editing by Alan Barona)

((UtkarshUmesh.Shetti@thomsonreuters.com))