Feb 5 (Reuters) - Regency Centers REG.O forecast 2026 funds from operations above Wall Street expectations on Thursday, betting on rising rental rates and resilient leasing demand at its grocery-anchored shopping centers.

Commercial real estate investment trusts such as Regency Centers have benefited from steady demand for their shopping centers, raising leasing activity, occupancy rates and rents.

Regency's portfolio of premium shopping centers, concentrated in affluent localities where consumers have high spending power despite macroeconomic uncertainties, includes 379 properties as of 2024.

Its properties are leased to major grocers, including Kroger KR.N and Amazon's AMZN.O Whole Foods, as well as retailers such as TJX TJX.N, Kohl's KSS.N, Albertsons ACI.N and Target TGT.N.

Regency now expects 2026 National Association of Real Estate Investment Trusts, or NAREIT, FFO between $$4.83 and $4.87 per share, above analyst estimates of $4.81.

For the quarter ended December 31, the company reported FFO of $1.17 per share, in line with analysts' estimates according to data compiled by LSEG.

Peer Simon Property SPG.N also forecast its 2026 FFO above expectations earlier this week on high rental rates.

(Reporting by Koyena Das in Bengaluru; Editing by Krishna Chandra Eluri)

((koyena.das@thomsonreuters.com))