A common occurrence during earnings season is that companies that report favorable quarterly earnings may still experience a decline in share price. An earnings report signifies the results of the past three months, but it's often forward guidance falling short of the Wall Street consensus estimate that's the reason for a price decline.

Conversely, when a company surpasses expectations in its guidance range, its stock price usually increases as investors react positively to the better-than-anticipated performance. 

When real estate investment trusts (REITs) report guidance on funds from operations (FFO), they typically provide a range in which they expect the projected FFO to come in. In contrast, the consensus estimates provided by Wall Street analysts are often single, specific numbers. For example, a company may report full-year FFO guidance of $1 to $1.05 per share, while the consensus estimate would be a single figure, such as $1.02 per share.

Take a look at three REITs that, in addition to reporting good second-quarter FFO and revenue numbers, have also reported full-year 2023 guidance that exceeded the estimated consensus numbers.

Check out: A REIT you've probably never heard of is up 36% over the past two years. Here's how its unique model is crushing the market.

EPR Properties (NYSE:EPR) is a Kansas City, Missouri-based diversified experiential REIT that owns and operates 363 movie theater chains, amusement parks, ski resorts, fitness centers and other recreational venues across 44 states and Canada.

On Aug. 2, EPR Properties reported its second-quarter operating results. FFO of $1.28 beat the estimates of $1.26 and was up from FFO of $1.17 in the second quarter of 2022. Revenue of $172.19 million crushed the estimates of $148.66 million by 16.31% and was a 7.77% increase over revenue of $160.45 million in the second quarter of 2022.

EPR Properties delivered its full-year 2023 guidance of $5.05 to $5.15. The estimated consensus was $4.90. EPR Properties has been doing well in 2023, up more than 25%.

After a recent pullback from $47.41 to $42.70, EPR could now be trading at a more favorable level.

Phillips Edison & Co Inc. (NASDAQ:PECO) is a Cincinnati-based retail REIT that owns and operates 274 grocery-anchored shopping centers across 31 states. Its main tenants are Kroger, Publix and Albertsons. During the second quarter, it achieved a 97.8% leased occupancy rate.

On Aug. 1, Phillips Edison reported its second-quarter operating results. FFO of $0.12 per share beat the estimate of $0.10 by 20% and was in line with the previous FFO of $0.12 in the second quarter of 2022. Revenue of $152.14 million beat the estimate of $147.08 million and was 6.75% above revenue of $142.52 million in the second quarter of 2022.

Phillips Edison also delivered its full-year 2023 FFO guidance, providing Wall Street with a range from $0.51 to $0.555. This handily beat the estimated consensus of $0.43.

Phillips Edison has risen 28% since the end of May.

On Aug. 1, Centerspace reported its second-quarter operating results. FFO of $1.28 per share was up from $1.12 per share in the second quarter of 2022. Revenue of $64.78 million missed estimates of $64.98 million but was 2.63% higher than the revenue of $63.12 million reported in the second quarter of 2022.

Centerspace also increased its 2023 core FFO per share outlook from $4.27-$4.56 to $4.55-$4.75. The estimated consensus was for $4.32, so this was a much better-than-expected outcome.

Centerspace has rallied 27% since the end of March.

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