Commercial real estate play Boston Properties (BXP) first discussed here on June 11, 2009, at a price of $48.89, remains in an uptrend, and I obviously still like the business model at this stage.

Boston Properties is a commercial real estate survivor -- no modest achievement, given the nation's deep 2007-2009 economic downturn. Boston Properties' high-quality portfolio, combined with the fact that only about 7% of its leased space is set to expire by the end of 2011, limits the company's exposure to leases renewed at lower rates.

The share of commercial real estate play Boston Properties (BXP) first discussed here on June 11, 2009 at a price of $48.89, have meandered at/near $85 for the better part of three months, and now may be a good time to consider taking some profits with BXP, if you're in at/near $49.

Further, during that period BXP also probed the $90 level three times, but failed to remain above it -- a bearish sign, and another data point that suggests that extracting some stock gains at this juncture would be prudent.

That said, Boston Properties' business model is still favored here. Boston Properties is a commercial real estate sector survivor -- no modest achievement, given the nation's deep 2007-2009 economic downturn.

I first discussed Boston Properties (BXP) here on June 11, 2009, at a price of $48.89, and the commercial real estate play is still laying the foundation for success.

Just put Boston Properties in the category of a commercial real estate survivor -- no modest achievement, given the nation's recent, deep economic downturn. Boston Properties' high-quality portfolio, combined with the fact that only about 14% to 15% of Boston Properties' leased space is set to expire by the end of 2011, limits its exposure to leases renewed at lower rates.

Commercial real estate play Boston Properties (BXP), which I first discussed here on June 11, 2009, at a price of $48.89, is still making the grade. Here's why:

Boston Properties' high-quality portfolio, combined with the fact that only about 20% of BXP's leased space is set to expire by the end of 2011, limits BXP's exposure to leases renewed at lower rates. A rebound in rental rates is not expected in F2010, but given cost-cutting, including the suspension of an office tower project on Manhattan's West Side, cash flow should be more than adequate.

If you're going to tread into a commercial real estate play, tread carefully, and Boston Properties (BXP), first written about here on June 11, 2009 at a price of $48.89, is a company I still like, for the following reasons.

First, Boston Properties' high-quality portfolio, combined with the fact that only about 20% of BXP's leased space is set to expire by the end of 2011, limits BXP's exposure to leases renewed at lower rates. A rebound in rental rates is not expected in F2010, but given cost cutting, including the suspension of an office tower project on Manhattan's West Side, BXP's cash flow should be more than adequate.

As expected, Boston Properties (BXP) is faring well amid challenging commercial real estate conditions, which a major reason I'm Reiterating my Buy rating for the company's shares, first recommended on June 11, 2009 at a price of $48.89. If you bought BXP in June, you're up an impressive 41%.

Boston Properties' high-quality portfolio, combined with the fact that only about 20% of BXP's leased space is set to expire by the end of 2011, limits BXP's exposure to leases renewed at lower rates. A rebound in rental rates is not expected in 2010, but given cost cutting, including the suspension of an office tower project on Manhattan's West Side, cash flow should be more than adequate.

Boston Properties is performing admirably, despite the commercial real estate market's woes and above-average vacancy rates.

Hence, I'm Reiterating my Buy rating for Boston Properties (NYSE: BXP), first recommended on June 11, 2009 at a price of $48.89. If you bought BXP then, you're up about 28%.

Given the worst commercial conditions in more than 20 years, commercial real estate and retail plays are best avoided, but there are exceptions, and Boston Properties (NYSE: BXP) is one.

In general, most analysts expect downward momentum on rents to continue though at least early F2010, due to job losses in key urban markets.

Boston Properties (NYSE: BXP - option chain) stock is falling today after the company announced an offering of 15 million common shares priced at $50 per share. This action will probably place a ceiling on this stock around $50 for the short-term. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on BXP.

This morning, BXP opened at $50.64. So far today the stock has hit a low of $49.80 and a high of $51.22. As of 12:30, BXP is trading at $50.92, down $2.09 (-3.9%). The chart for BXP looks neutral and S&P gives BXP a neutral 3 STARS (out of 5) hold ranking.

Boston Properties (NYSE: BXP) acquired the General Motors Building and a portfolio of office towers from Macklowe Properties for $3.9 billion in cash and debt.

Bank of America says: "Macklowe acquisition a Win-Win; Reiterate Buy."

BXP overall option implied volatility of 32 is near its 26-week average according to Track Data, suggesting non-directional risk.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

General Growth Prop(NYSE:GGP) share price is near its 32-month low. GGP is the 2nd largest U.S. based publicly traded Real Estate Investment Trust with 200 regional shopping malls in 45 states. GGP declared a dividend of $0.50 per share, payable January 31, 2008. GGP February option implied volatility of 57 is above its 26-week average of 37 according to Track Data, indicating larger price risk.

Boston Properties(NYSE:BXP) share price is near its 18-month low. BXP, an owner and developer of office properties in the United States, closed at $85.42. BXP will report Q4 EPS on January 29th. Mortimer Zuckerman is Chairman of the Board of BXP. BXP has a market cap of $10.1 billion with long term debt of $5.4 billion. BXP February option implied volatility of 40 is above its 26-week average of 28 according to Track Data, suggesting larger risk.

Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

MOST NOTEWORTHY: REITs, Business Objects, Allstate Corp and P&C Insurance were today's noteworthy downgrades:

• Deutsche Bank downgraded REITs AvalonBay (NYSE: AVB), Boston Properties (NYSE: BXP), Health Care REIT (NYSE: HCN), Kimco (NYSE: KIM) and Public Storage (NYSE: PSA) to Hold from Buy on valuation following the recent share appreciation.
  
• Business Objects (NASDAQ: BOBJ) was downgraded to Neutral from Outperform at Baird following its acquisition by SAP AG (NYSE: SAP).
  
• Wachovia downgraded Allstate Corporation (NYSE: ALL) to Market Perform from Outperform and P&C Insurance (NYSE: PGR) citing deteriorating fundamentals in personal lines.

OTHER DOWNGRADES:

• UBS downgraded BEA Systems (NASDAQ: BEAS) to Neutral from Buy.
  
• JP Morgan downgraded Merrill Lynch (NYSE: MER) to Neutral from Outperform.
  
• Sealy Corporation (NYSE: ZZ) was downgraded to Neutral from Buy at Banc of America.
  
• Friedman Billings downgraded technology stocks, lowering ASE Test Limited (NASDAQ: ASTSF), ASML Holding (NASDAQ: ASML), KLA-Tencor (NASDAQ: KLAC) and Rudolph Technologies (NASDAQ: RTEC) to Market Perform from Outperform.

MOST NOTEWORTHY: AutoNation (AN), Darden Restaurants (DRI), Rare Hospitality (RARE) and ChoicePoint (CPS) were today's noteworthy downgrades:

• Goldman cut AutoNation (NYSE: AN) to Sell from Neutral based on potential for additional earnings shortfalls. The firm does not expect a sharp rebound in shares.

• Bear Stearns downgraded Darden Restaurants (NYSE: DRI) to Peer Perform from Outperform following its acquisition of Rare Hospitality.

• Rare Hospitality (NASDAQ: RARE) was cut to Hold from Buy at Keybanc following the acquisition offer from Darden.

• ChoicePoint (NYSE: CPS) was cut to Reduce from Neutral at Suntrust, citing the difficult macro environment, which will impact revenue growth in its low-barrier commoditized non-insurance operations...

OTHER DOWNGRADES:

• Alliance Holdings (NASDAQ: AHGP) was cut to Hold from Buy at AG Edwards.

• UBS downgraded SL Green Realty (NYSE: SLG) and Boston Properties (NYSE: BXP) to Neutral from Buy.

• Morgan Stanley downgraded Countrywide Financial (NYSE: CFC) to Equal Weight from Overweight.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

MOST NOTEWORTHY: Coca-Cola (KO), Fiserv, Inc (FISV) and several real estate companies were today's noteworthy upgrades:

• Coca-Cola (NYSE: KO) was upgraded to Buy from Hold at Citigroup, as the firm believes the company is addressing growth issues through recent acquisitions and notes that there are signs of stabilization in Japan.
• Fiserv (NASDAQ: FISV) was upgraded to Outperform from Neutral at Cowen based on valuation, upside from restructuring, new management's willingness to unlock value, and the potential possibility of a company sale.
• Deutsche Bank upgraded Apartment Investment and Management Co (NYSE: AIV), AvalonBay Communities (NYSE: AVB), Boston Properties (NYSE: BXP), Developers Diversified Realty Corp (NYSE: DDR), Kilroy Realty Corp (NYSE: KRC), Kimco Realty Corp (NYSE: KIM), Macerich Co (NYSE: MAC) and Simon Property Group (NYSE: SPG).

OTHER UPGRADES:

• RBC Capital upgraded Texas Roadhouse (NASDAQ: TXRH) to Outperform from Sector Perform, citing valuation and improved EPS outlook.
• Kenexa Corp (NASDAQ: KNXA) was upgraded to Outperform from Neutral at Credit Suisse, citing valuation and reduced risk from the BrassRing acquisition.
• Goldman Sachs added Foster Wheeler (NASDAQ: FWLT) added to its Conviction Buy List, citing valuation and leverage to energy infrastructure build and power.
• Goldman also added ProLogis (NYSE: PLD) to its Conviction Buy list, citing upside to FFO guidance, favorable domestic and international demand and above-average development margins.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).