The GPT (ASX:GPT) share price is on watch today. Here's why.

The GPT Group (ASX: GPT) share price is on watch this morning after the Aussie REIT's latest update on market conditions and its portfolio.

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The GPT Group (ASX: GPT) share price is on watch this morning after the real estate investment trust (REIT) released its latest quarterly update today.

Why is the GPT share price on watch?

Investors will be watching the Aussie REIT's shares after the latest update. GPT reported strong rent collection outcomes across its portfolio, highlighted by 105% of net billings collected. Retail collections totalled 110% as GPT continues to collect on outstanding debtors arising from the COVID-19 disruptions.

GPT reported the operating environment was "strengthening" as the post-pandemic economic recovery continues. Office portfolio occupancy fell to 91.9%, down from 94.9% in December, following practical completion of GPT's 32 Smith, Paramatta development. 

GPT reported 37,300 square metres of office leasing year to date, including heads of agreement. In logistics, occupancy slipped by 300 basis points to 96.8% in the quarter after recent lease expiries in Melbourne.

The GPT share price is one to watch this morning as investors process the latest numbers. Retail total specialty sales climbed 12.4% with total centre sales up 8.0% compared to the March 2020 quarter. In specialty, general retail (+25.5%) and leisure (+20.3%) led the way while cinema sales and travel agencies remain depressed.

The company reaffirmed its FY2021 guidance numbers. The Aussie REIT is targeting funds from operations (FFO) per security growth of 8% with estimated distribution per security (DPS) growth of 12% on 2020.

GPT also unveiled a new funds management partnership during the quarter. GPT and QuadReal Property Group entered into an $800 million capital partnership to expand its logistics exposure and funds management platform.

More than 20 per cent of capital has now been committed by the joint venture. That includes acquisitions and development purchases in Melbourne and Brisbane with more on the way.

Foolish takeaway

The GPT share price is one to watch this morning after the Aussie REIT's latest quarterly update. "Strengthening" conditions bode well for shareholders eyeing off GPT's target FY2021 distributions.

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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