Feb 8 (Reuters) - Regency Centers forecast full-year funds from operations largely below market expectations, as leasing demand softens for the commercial real estate investment trust's (REIT) grocery-anchored shopping centers.

Higher borrowing rates and choppy consumer demand environment have slowed retailers' expansion plans, denting leasing demand.

Regency Centers expects 2024 National Association of Real Estate Investment Trusts (Nareit) funds from operations (FFO) between $4.14 and $4.20 per share, compared with market expectations of $4.19 per share, per LSEG data.

In 2023, it reported FFO of $4.15 per share.

The company completed its acquisition of peer Urstadt Biddle last year as it looks to consolidate its presence in suburban markets. The combined portfolio of the two companies comprises 480 properties.

At about 80% of Regency's properties, grocers such as Kroger and Trader Joe's are the largest tenants.

For the fourth quarter, Regency reported FFO of $1.02 per share, edging past market expectations of $1.01.

Regency forecast core operating earnings per diluted share between $4.02 and $4.08. In 2023, the company reported core operating earnings per share of $3.95.

Shares of the company were marginally down in extended trading. (Reporting by Juveria Tabassum; Editing by Shinjini Ganguli)