UPDATE 1-Duke Realty Q2 FFO beats, backs FY view

* Q2 FFO $0.29 vs est. $0.27

* Backs FY FFO/shr view of $0.95-$1.15, vs est. $1.09

* Q2 rev up 10 pct

July 28 (Reuters) - Duke Realty Corp (DRE.N), an industrial and office real estate investment trust, posted second-quarter funds from operations (FFO) that beat estimates, helped by a rise in occupancy and tenant retention rates.

The company backed its core FFO outlook for the year in the range of 95 cents to $1.15 per share including the effects of additional shares issued in June.

Analysts were expecting 2010 FFO of $1.09 a share, according to Thomson Reuters I/B/E/S.

FFO is a measure of real estate investment trust performance that removes the profit-reducing effects of depreciation.

For the second quarter, the company posted core FFO of 29 cents a share, as against 37 cents a share a year earlier, due to a $18.7 million impairment charge.

Analysts were expecting FFO of 27 cents a share.

Duke Realty's revenue jumped 10 percent to $383.9 million as overall portfolio occupancy rate rose to 87.9 percent and tenancy retention rate was over 76 percent.

Shares of the Indianapolis, Indiana-based company closed at $11.99 Wednesday on the New York Stock Exchange. (Reporting by Soham Chatterjee in Bangalore; Editing by Unnikrishnan Nair)